Professor Michelle Lowry, LeBow School of Business, Drexel University
Within an investment bank, there is a tension between the investment banking and asset management divisions: the former possesses substantial private information while the latter seeks information. Information is arguably impossible to completely safeguard, raising the possibility of leaks, either deliberate or inadvertent. To the extent that there is information leakage, we conjecture that it will be observed in the options market, as options represent a relatively cheap means to leverage private information. Empirical evidence is consistent with trading departments of the advisor banks having an information advantage, and leveraging this advantage through options rather than stock.
Michelle is the TD Bank Professor of Finance at the LeBow School of Business, Drexel University. She is an associate editor of the Journal of Financial Economics and of Financial Management, and she is a past associate editor of the Review of Financial Studies.
Michelle is an academic director at the Corporate Governance Center at Drexel University. Her research focuses on initial public offerings and mergers, and she is interested in the ways that companies’ corporate governance affects their performance around these corporate events.