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SUMMARY:THE VALUE OF EXECUTIVE VISIBILITY - Lora Dimitrova\, Senior Lectur
 er in Finance\, University of Exeter
DTSTART:20221115T131500Z
DTEND:20221115T143000Z
UID:TALK185255@talks.cam.ac.uk
CONTACT:Emily Brown
DESCRIPTION:We examine the effect of executive visibility on firm value\, 
 using Special Purpose Acquisitions Companies (SPACs) as a laboratory that 
 allows us to separate the effect of executive's public profile\, from that
  of the firm. We capture executive visibility using SPAC sponsors presence
  in the main business press\, on the Internet (Google and Wikipedia)\, and
  on social media (LinkedIn and Twitter). The results show that investors p
 refer visible executives\, as sponsors with the highest visibility raise a
 pproximately 25.47% more funds and close the IPO 10 days faster relative t
 o sponsors with the lowest visibility. Visibility is also positively corre
 lated with firm performance\; SPACs with the most visible sponsors gain 47
 % higher abnormal merger announcement returns compared to those with the l
 east visible sponsors. We also find that institutional investors trade on 
 sponsor visibility\, by selling all SPACs\, but those with the highest vis
 ibility sponsors\, which they initially buy\, pump up the price\, attract 
 retail investors\, and eventually dump most shares prior to the merger com
 pletion.\n\n
LOCATION:Castle Teaching Room (Cambridge Judge Business School)
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