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Events

31
May

Seminar – The US Listing Gap

10:00 - 11:30

Professor René Stulz, The Ohio State University

Relative to other countries, the US now has abnormally few listed firms given its level of economic development and the quality of its institutions. We call this the “US listing gap” and show that it is consistent with a decrease in the net benefit of a listing for US firms. We find that the propensity to be listed is lower than at the listing peak in 1996 for all firm size categories and industries. From 1997 to the end of our sample period in 2012, the new list rate is low and the delist rate is high compared to US history and to other countries. The high delist rate accounts for roughly 46 per cent of the listing gap and the low new list rate for 54 per cent. The high delist rate is explained by an unusually high rate of acquisitions of publicly-listed firms compared to previous US history and to other countries. We rule out alternative explanations for the listing gap, including industry changes, changes in listing requirements, and the reforms of the early 2000s.

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31
May

Seminar – Mitigating Disruption Cascades in Supply Networks

12:30 - 13:30

Dr Nitin Bakshi, London Business School

The losses to supply chains from disasters such as the Tohuku earthquake in Japan and Thai floods in 2011 arise not only through direct damage at firms, but also from the interruption of normal operations due to lack of supply; that is, due to disruption cascades from suppliers in the adjacent tiers and beyond. For instance, the Japanese tsunami resulted in economic losses estimated at $210 billion. To curtail such losses, firms can make ex ante investments in mitigation and recovery strategies. However, given the complexity of the network topology, the assessment and mitigation of disruption risk poses formidable managerial challenges. In this paper, we address these challenges by analysing an investment game for a given network structure, in which firms’ investments in risk mitigation are the best responses to their suppliers’ investments. We determine the equilibrium payoffs in both decentralised and centralised settings and find that, under either setting, the investment and payoff of a firm typically depends only on the properties of its extended local neighbourhood; that is, up to its tier-two suppliers, thus making knowledge of the remaining network structure redundant. We also characterise the efficiency gap (difference between centralised and decentralised payoffs) in terms of the network structure; a large gap corresponds to an opportunity for intervention.
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5
Jun

Meet the Sake Brewer: Dassai Sake Tasting Event

15:30 - 18:30

Mr Kazuhiro Sakurai, Vice President of Asahi Shuzo Co.

Join us for an evening with Mr Kazuhiro Sakurai, Vice President of Asahi Shuzo Co., hear from the Cambridge MBA students and their recent experience on their Global Consulting Project (GCP) with Dassai and finish the evening with Sake tasting. Dassai is one of the premium, high quality and world’s bestselling Sake. With its smooth, clear and fruity taste, Dassai is now enjoyed in more than 20 countries around the world.

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