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.

Speaker bio

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.

Address

Trumpington St
Cambridge,
Cambridgeshire, CB2 1AG,
United Kingdom

Date & time

Date: 1 December 2015
Start Time: 10:30
End Time: 12:00

Audience

Open to: Members of the University of Cambridge

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Event location


Trumpington St
Cambridge,
Cambridgeshire, CB2 1AG,
United Kingdom

Event timings

Date: 1 December 2015
Start Time: 10:30
End Time: 12:00