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13.06.2019
26th Annual MFS Conference - The final version of the program with the sessions, paper presentations and booklet is now available online
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09.05.2019
26th Annual MFS Conference - A preliminary version of the conference program is now available online
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08.04.2019
7th Spring MFS Conference - The final version of the program with the sessions, paper presentations and booklet is now available online
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Plenary Talks

KEYNOTE SPEAKERS




Roni Michaely
 - University of Geneva, Switzerland

Date: Monday, July 1, 2019
Time: 1:15 - 2:00 p.m.
Venue: Senat Hall (Jerusalem School of Business Administration, The Hebrew University of Jerusalem)

Talk Title:

Political Activism and Market Power

Abstract:

Politically active firms experience gains in market share relative to inactive firms following periods of high policy uncertainty. Gains in market share are also accompanied by relative increases in profitability, margins, and selling prices. Findings indicate that active firms secure their first-mover advantage through strategically timed investments when the level of market-wide policy uncertainty is high. The causal inferences that we draw from our panel data analysis is supported using an instrument based on firms geographic proximity to Washington D.C. Causal interpretation is further supported using firms mandatory lobbying disclosures to identify a broad set of legislative developments actively lobbied for by politically active sample firms. Collectively, our results show that politically active firms gain a competitive advantage over inactive industry peers.

Short Bio:

Professor Michaely is a Finance Professor at the Geneva Finance Research Institute; University of Geneva. He is also a dean’s fellow at the Hebrew University in Jerusalem. He teaches corporate finance and entrepreneurial finance. Professor Michaely’s research interests are in the areas of corporate finance, entrepreneurial finance, capital markets, and valuation. His current research focuses on conflict of interest in the capital markets, corporate payout policy, and securities’ valuation. He was recently recognized as one of the most cited people in finance, and was an associate editor for the Journal of Finance. Professor Michaely also serve on the board of directors and advisory board of several start-up firms.

His research has appeared in such scholarly journals as the Journal of Finance, Review of Financial Studies, Journal of Financial Economics, Management Science, Journal of Public Economics, Journal of Financial and Quantitative Analysis, and Review of Finance. His research has been also featured in the Wall Street Journal, New York Times, the Economist, BusinessWeek, Forbes, Barrons, Money, Reuters, Worth, and others. Prof. Michaely has given over 250 invited research talks and conference presentations around the world, and is working with scholars from the US, Europe, and Asia on research in corporate finance.

Professor Michaely’s research has also received many awards and honors. Awards include the 2005 Journal of Financial Economics Fama Prize for best paper, the 2000 Journal of Finance Smith Breeden Prize for distinguish paper, The 2000 Western Finance Association Award for the best paper on capital formation, The Review of Financial Studies 1999 Barclays Global Investors/Michael Brennan Runner-up Award, The 1999 Western Finance Association Award for the best paper, 1996 Quantitative Alliance Group Prize for best paper, and the 1996 Western Finance Association Award for best paper on investments.

 





Eti Einhorn - Tel Aviv University, Israel

Date: Tuesday, July 2, 2019
Time: 1:15 - 2:00 p.m.
Venue: Senat Hall (Jerusalem School of Business Administration, The Hebrew University of Jerusalem)

Talk Title:

Strategic Communication Between Firms and Investors in Capital Markets

Abstract:

The strategic communication between firms and investors in capital markets through corporate voluntary disclosures has long been an important research interest in accounting, finance and economics. The conceptual foundation underlying the literature on corporate voluntary disclosures is the seminal unraveling idea, which suggests that publicly traded firms are induced by the marketplace to fully disclose their private verifiable information. The rationale behind the unraveling theory is that silence on the part of firms is informative to the capital market investors. Any piece of private information that firms can credibly disclose, but nevertheless choose to withhold, is rationally interpreted by investors as conveying bad news. Recognizing this, firms are urged to fully disclose their private verifiable information, however unflattering its content may be, in order to distinguish themselves from firms possessing even worse information. The unraveling argument is compelling, but it is also puzzling, because it does not reconcile with the commonly observed propensity of firms to disclose only part of their private information to investors, and it is inconsistent with the apparent need for financial reporting regulations in capital markets. Challenged by this enigma, the theory on corporate voluntary disclosures has primarily focused on exploring the triggers that lead firms to suppress some their private verifiable information from the capital market. In my talk, I will review the evolution of this line of literature, placing my own research work in this evolutional context.

Short Bio:


Prof. Eti Einhorn is an accounting professor and the head of the accounting department at Tel Aviv University. She is an international expert in the area of information economics. Her research agenda aims at understanding how information flows into financial markets from different sources, how it is dispersed between the market participants, and how it affects the trading activity in the market. Using game theory techniques, her research work is based on the analysis of models that are designed to depict the strategic communication game between the capital market participants. Her research papers have appeared in leading scholarly journals such as Journal of Accounting and Economics, Journal of Accounting Research, The Accounting Review, and Review of Accounting Studies. Prof. Einhorn also served on the board of governors of the Israel Securities Authority and on boards of directors of financial firms.

 

 





Dan Galai - Hebrew University of Jerusalem, Israel

Date: Tuesday, July 2, 2019
Time: 7:30 - 8:15 p.m.
Venue: Kedma Restaurant (Mamila Avenue)

Talk Title:

Whats Wrong with the Way we Teach Corporate Finance and the Contingent Claims Analysis

Abstract:

Corporate Finance is about investment decisions as well as about capital structure, or, how to finance the firm. Additional topics are the dividend policy, effect of corporate taxations, Mergers and Aquistions and more. The ruling model is the CAPM with extentions to APT and more. A lot of emphasis is put on the Weighted Average Cost of capital (WACC), derived from the claim holders specific cost of capital and then applying it on investment selection. The Contingent Claims Analysis (CCA) is a general approach to analyze the stakeholders of a corporation who have contingent claims on the corporate future, uncertain cash-flows generated by the operations of the firms. The CCA allows valuing each stakeholders claim and also to assess the risk incurred by the stakeholders. The CCA highlights the potential conflicts of interest among the various claimholders. In this talk I review applications of CCA including valuation of various forms of debt, rating, credit spread, probability of default and corporate events like dividends, employee stock options and M&A. The CCA framework is shown to be useful in all these financial questions. We assume that the value of the firm assets is given. The future distribution of the assets rates of return is also known and given. The focus is on the liability side of the balance sheet, i.e., the funding sources of the activity of the firm, and more generally on the financial claims of the various claimholders of the firm.

Short Bio:

Prof. Dan Galai serves as Co-Chief Executive Officer and Manager and Director of Startify A.S (1992) Ltd. Prof. Galai is also a Professor of Finance and Banking and Dean of the School of Management at the Hebrew University, Jerusalem. Prior to founding Startify, Prof. Galai served as Consultant to the Bank of Israel, Bank Hapoalim, Mizrachi Bank and many more companies and institutions. He is an international expert in the area of options, financial engineering, and risk management. Prof. Galai serves as a Director of Startify A.S (1992) Ltd. He serves as Director of B.P.T. Bio Pure Technology Ltd. He is recipient of the Pomeranze Prize of the Chicago Board Options Exchange (CBOE) for excellence in research on options. Prof. Galai has authored numerous papers in the areas of finance and banking, and his published books include Risk Management (McGraw-Hill, 2000), The Business Plan Process (Matar, 2003), and The Essentials of Risk Management (McGraw-Hill, 2005).
 

 



SPECIAL TUTORIAL
PRESENTATION AND PANEL DISCUSSION




Stylianos Perrakis - Concordia University, Canada

Talk Title:

Stochastic dominance. An alternative paradigm for pricing options.
(Palgrave MacMillan, 2019)

Discussants:

Thierry Post - Nazarbayev University, Kazakhstan
Alon Raviv - Bar Ilan University, Israel
Amnon Schreiber - Bar Ilan University, Israel

Abstract:

This presentation summarizes index and equity option pricing under stochastic dominance, which develops trading bounds for options based on the condition that an index overlaid with a zero net cost option portfolio should not second degree dominate the index. This condition produces at the limit the Black-Scholes-Merton option price when markets are complete. It can also be extended to accommodate persistent theoretical and empirical failures of the dominant no arbitrage-simultaneous equilibrium paradigm. These include, among others, the existence of transaction costs, the partial segmentation of the put and call markets, the inconsistencies between the physical and option implied risk neutral distributions under systematic rare event risk, the widening of the proportional bid-ask spreads for out-of-the money options, etc. Suggestions for new research include pricing under all forms of GARCH dynamics, state dependent volatility with rare event risk and the determination of bid-ask spreads in the option market.

Short Bio:


Stylianos Perrakis holds a Diploma in Mechanical-Electrical Engineering from the National Technical University in Athens, Greece, and an MSc and PhD from the University of California at Berkeley. He has also taught as a full professor at the University of Ottawa, and as a Visiting Professor at the University of Geneva, Switzerland, the University of California, Santa Barbara, the École Supérieure de Commerce of Reims, France, and the Athens Laboratory of Business Administration in Greece.

Dr. Perrakis has published widely in Economics, Finance and Management Science over the last 40 years. His articles have appeared in (among others) The American Economic Review, The Review of Economic Studies, The International Economic Review, Management Science, The Journal of Finance, The Journal of Business, The Review of Financial Studies, The Journal of Financial and Quantitative Analysis, The Journal of Futures Markets, The Journal of Banking and Finance, The Journal of Economic Dynamics and Control, The International Journal of Industrial Organization, and Economic Letters. He is also author of a monograph on Canadian Industrial Organization and co-author of a textbook on Investments that is currently in its 8th edition. He acts as a referee for over 20 journals, has served on the editorial board of Finance, the official publication of the French Finance Association, and is currently Associate Editor of Risk and Decision Analysis and Editor of the Multinational Finance Journal. His latest research interests are option pricing under transaction costs, microstructure in option markets and credit derivatives.

Dr. Perrakis has been the recipient of various distinctions throughout his career. Most recently, he was elected Fellow of the Royal Society of Canada in July 2007, became a member of Concordia University’s Provost Circle of Distinction in July 2009 and was appointed RBC Professor of Financial Derivatives in June 2010. In 2013 he was elected member of the Board of Governors of the University of Macedonia, Thessaloniki, Greece.


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