Research

Investor Base, Cost of Capital, and Firm Performance: The Case of Post-Issuance Anomalies

In this study, Associate Professor Roger Edelen and co-authors Ozgur Ince and Gregory B. Kadlec from Virginia Tech examine the link between a firm’s investor base, discount rate, capital budgeting decisions, and profitability, arguing that a downward shift in discount rates associated with an expanded investor base can account for both poor stock returns and operating performance following security offerings.

The most striking finding in this study is that an expansion in the firm’s investor base is both a necessary and sufficient condition for anomalous poor performance. That is, issuing firms that do not experience a change in investor base do not exhibit anomalous post issuance performance while non-issuing firms matched on changes in investor base exhibit identical performance to that of issuing firms. More generally, the evidence suggests that the investor base plays an important role in corporate finance.

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News Release

UC Davis Graduate School of Management partners with Lawrence Livermore and Sandia National Labs to drive technologies from lab to market

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(Davis, Calif.) – With a joint goal of speeding the transfer of new technologies from the laboratory to the commercial marketplace, the UC Davis Graduate School of Management, Lawrence Livermore National Laboratory and Sandia National Laboratories have announced a new partnership for researchers to develop their entrepreneurial skills.

Spotlight Story

Vickie Sherman MBA 13 Finds Her Passion, Her Career—and Herself

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What opportunities, decisions, events have shaped your professional life?

My career path has been a climb across a jungle gym rather than a tangent up a corporate ladder. As a child, I used to thumb through the three-inch JCPenney catalogue, picking out the professional women who I would grow to be. I wanted to rule the world from a corner office in a suit and heels. I wanted to shed my humble origins and become Corporate Barbie.

Spotlight Story

MBA Student Consultants Make an IMPACT
Projects Put Business Needs Front and Center

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Agilent Technologies’ Electronic Measurement Group is a $3.6 billion business that over the past decade has seen a dramatic shift in its customer base from U.S., and Western European customers to predominantly Asia-based customers. Today, the majority of the division’s revenues are generated outside of the U.S., with an increasing concentration in China.

Spotlight Story

UC Davis Part-Time MBA in Top 8%, Full-Time MBA in Top 9%
U.S. News & World Report’s latest rankings: This marks the 19th consecutive year our MBA program has been ranked among the best in the nation.

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(Davis, CA) — The UC Davis Graduate School of Management’s full-time MBA program has been ranked among the top six percent of AACSB International-accredited programs nationwide, according to U.S. News & World Report’s latest graduate business school rankings released today.