Dirk Schiereck

Technische Universität Darmstadt | TU · Department of Law and Economics (Dept.1)

We analyze the relationship between new product introductions, stock trading activities, and systematic risk changes. Using a unique hand-collected data set on new drug approvals, we find opposing results to previous work that suggests changes in systematic risk. After adjusting for potential biases caused by increased leverage and frictional tradi...

This article examines the value creation of 78 German acquisitions in the US during the period 1990 to 2004. The observed Cumulative Abnormal Returns (CARs) confirm the previous finding that cross-border Mergers and Acquisitions (M&A) activity yields on average wealth gains for shareholders of the acquiring companies. No evidence of a negative cros...

This paper tests for the presence of a weather effect on liquidity in a screen-based electronic stock market. The Exchange Liquidity Measure XLM enables us to separate the effect of cloudy skies on liquidity provided by market makers from this effect on liquidity naturally in the market. The empirical evidence suggests that cloudy skies correspond...

We analyze the impact of post-trade anonymity on liquidity and informed trading in an order driven stock market. The German stock market introduced the Central Counterparty (CCP) in March 2003 for German equities traded on its anonymous electronic trading platform Xetra leading to a major change in its existing transparency regime. Before the intro...

Most stock markets are characterized by a number of parallel operating trading systems which interact intensively with each other. Usually, smaller trading platforms take the leading domestic main market as a benchmark in the price discovery process and for closing open trading positions. But what happens if the smaller trading systems suddenly hav...

In the recent past, the automotive supply industry has been facing increasing merger activity. This paper examines the short- and long-term wealth effects of horizontal mergers and acquisitions on acquirers in the automotive supply industry. Based on a sample of 230 takeover announcements between 1981 and 2007, significant positive announcement ret...

Some studies indicate that there is only little difference between business and personal risks among small businesses. Personal assets and wealth can become subject to business risks depending on the organisational and legal structure chosen for the business. By the choice of the organisational and legal form the owner has a chance to increase the...

This paper proposes a term structure model of risk-free yields and corporate credit spreads for the European bond market. In addition to latent factors, we include observable macro factors that are linked to inflation, real activity, and financial activity. Following the approach of Ang and Piazzesi (2003), we model the term structure simultaneousl...

We analyze the relationship between new product introductions, trading activity, and systematic risk changes. The analysis is placed within a real options framework in which new product introductions are associated with the exercise of a real option. Using a unique hand-collected data set on new drug ap-provals, we find opposing results to previous...

We analyze the value creation of state funds acquiring minority stakes in exchange listed financial services firms – based on 35 transactions between 1995 and 2008. Several state fund investments in the financial services industry in times of financial crisis indicate the economic importance of these stake acquisitions. However, the value implicati...

While there has been done a lot of empirical research on IPO performance in general only Prezas et al. [1] focus on equity carve-outs (ECOs) in comparison to common IPOs from an investor's point of view. ECOs are an often applied divestment alternative used by technology companies to refocus their core businesses. Our note is claiming to extent thi...

Zusammenfassung Kirchliche Kreditgenossenschaften mit ihren Besonderheiten in der Kunden- und Eigentümerstruktur weichen auch hinsichtlich ihrer Geschäftsstruktur sowie ihrer Geschäftsgebiete vom Durchschnitt der genossenschaftlichen Primärbanken ab. Die vorliegende Untersuchung zeigt, inwieweit diese Besonderheiten eine Übertragung der praktiziert...

There is still some ambiguity about the company's motivation for using the hybrid finance instrument of convertible bonds. Although manifold theoretical approaches provide varying assumptions about the rationale behind the issuance of convertible bonds, the empirical evidence about the major issuance reasons and the subsequent wealth impacts for th...

In this article we present theoretical considerations and empirical evidence that the short-run autoregressive behavior of commodity markets is not only driven by market fundamentals but also by the trading of speculators. To empirically test this, we individually fit smooth transition autoregression models to commodity price series and find in man...

There is good reason to anticipate increased demand for sustainable and responsible investments from both retail and large institutional investors. Increasing interest in forestry may come from both a financial and general sustainability standpoint, and from a carbon perspective, because trees are a critical part of any successful climate change st...

Die ganze Welt der Wirtschaft: Betriebswirtschaft, Volkswirtschaft, Wirtschaftsrecht, Recht und Steuern in 8 Bänden. Das Gabler Wirtschaftslexikon vermittelt Ihnen die Fülle verlässlichen Wirtschaftswissens Aktuell, kompetent, zuverlässig Jetzt in der aktualisierten und erweiterten 17. Auflage Das Gabler Wirtschaftslexikon lässt in den Themenbere...

We look at the wealth generated for shareholders of energy assets in Central and Eastern Europe (CEE) by the announcement of cross-border mergers or acquisitions involving a bidder from a Western industrialized country between 1995 and 2005. The impact on both the performance improvements at the firm level as well as on an industry and economic lev...

We document a significant increase in systematic equity risk after a firm has issued convertible debt. In contrast, no such increase can be detected for equity issuers when infrequent trading and price adjustment delays are controlled for. The evidence is consistent with the notion that convertible debt issuers may be rationed out of the equity mar...

In den letzten Jahren waren in Europa zahlreiche Emissionen von Umtauschanleihen zu beobachten, hinter denen die vornehmliche Bemühung von Unternehmen vermutet werden kann, Beteiligungen zu veräußern. Anhand eines Datensatzes, der 57 europäische Transaktionen der Jahre 1997 bis 2003 enthält, zeigen wir, dass auch geringere Transaktionsgebühren und...

This paper investigates the relationship between the reputation of investment banks employed in mergers and acquisitions transactions and the resulting wealth effects. Two hypotheses are tested: the superior deal hypothesis, stating that high reputation advisors suggest deals with higher overall transaction gains; and the bargaining advantage hypot...

We study the wealth effects of 177 domestic and cross-border acquisitions announced by Spanish corporations between 1990 and 2004. Our findings show that domestic transactions significantly outperform international transactions. However, controlling for several firm and transaction characteristics, we do not find any cross-border effect for acquisi...

It is known from the literature on the psychology of modes of behavior in stock markets that – besides other parameters – moods and emotions as personal influencing factors affect yield expectations and the risk-awareness of market participants. The constructs that may influence moods include the weather as well. Studies of the US market show that...

Kamstra et al. [Kamstra, M.J., Kramer, L.A., Levi, M.D., 2000. Losing sleep at the market: the daylight saving anomaly. The American Economic Review 90, 1005-1011] argue that the mean weekend return following the changes in daylight saving time is less than the mean weekend return throughout the rest of the year. Opposing studies, such as Pinegar [...

We study the valuation impact on 148 insurance stocks caused by 25 of the largest catastrophic events that occurred in recent history. Because of their exceptional severity and the consequent high attention they experience in the media we expect to find significant overreactions of insurance stocks relative to the market, which would be in-line wit...

In this paper we shed additional light on relatedness research and examine how capital markets value different value chain integration and diversification strategies in mergers. We focus on a sample of 330 machinery industry transactions, as this industry compromises strongly varying business strategies concerning focus on core business, diversific...

Stadtgraben 9, 48143 Münster, Fax +49-251-83-22846. b Tel. +49-251-83-25005, E-Mail: martin.bohl@wiwi.uni-muenster.de c European Business School, Schloss Reichartshausen, 65375 Oestrich-Winkel. Oktober 2007 Zusammenfassung In dieser Studie werden die Effekte der Vorverlegung des Handelsschlusses im elektro-nischen deutschen Börsenhandelssystem Xetr...

In this paper we examine stock price reactions to cross-border mergers and acquisitions in a particular industry, the automotive supply industry. We show that cross-border transactions entail a pronounced value creation for the acquiring shareholders and that this value creation also holds for transcontinental transactions, which to our knowledge h...

The logistics industry has experienced a strong consolidation since the early 1990s. In this paper, the value implication of 200 logistics mergers and acquisitions (M&A) that have taken place between 1991 and 2006 is analysed by applying event study methodology. The impacts on acquirers, targets, and combined entities are examined and it is determi...

Purpose The purpose of this paper is to provide evidence for the ongoing significant underpricing of European property IPOs. Design/methodology/approach The paper provides recent evidence on underpricing for a comprehensive data set of 105 IPOs of European property companies. It starts with an overview of evidence and explanations for the underpri...

This paper studies differences in intraday pattern of Principal and Agent Account Trading at Xetra. We provide empirical evidence that Agent-Account trading dominates the beginning of the trading day, while Principal-Account trading dominates the evening. These results have major implications for several strings of literature. Firstly, we interpret...

This study investigates the performance of large speculators in 22 commodity markets over the last 15 years. We find that large speculators were profitable in many markets. Two possible sources of returns are analyzed for their relevance in these gains: The ability to forecast and the flow of risk premia. In contrast to earlier studies we use direc...

Privatizations are commonly associated with an increase in efficiency due to a stronger focus on profit maximization and less agency conflicts because the management does not have to serve political objectives anymore. This paper discusses whether SIPs generate positive announcement returns because of increased efficiency after the ownership transi...

Hat die heutige Finanzmarktkrise instabile Marktmechanismen oder mangelnde Regulierung als Ursache? Christoph Kaserer, Technische Universität München, sieht in einer Kombination aus einem Regulierungsversagen und einem ungelösten Moral-Hazard-Konflikt bei Finanzinstitutionen den Grund für diese Entwicklung. Hans-Peter Burghof und Felix Prothmann, U...

As banking is currently considered a non-typical area for ERP usage, the authors conducted a survey on anticipated benefits, potential disadvantages and implementation success associated with ERP adoption in banking. The results indicate that, despite a predominant usage of ERP systems in back-office areas, banks see ERP systems as a long-term stra...

Banking today cannot be considered a typical ERP industry even if our survey shows that the dissemination of ERP in banking has clearly started. Still we expect the goal achievements and expectations to be different within an industry where ERP systems do not support core business processes and are usually deployed in a few backend areas only.

Since the late 1990s, the construction industry has undergone a change in business model, as contractors vertically expand their operations to other parts of the real estate life cycle. The question arises on whether construction companies have superior abilities as real estate service providers. We have examined the value implications of 106 large...

This paper examines success factors for the value creation of a private equity fund investing in a bank - based on Lone Star's acquisition of Korea Exchange Bank in 2003. Despite the value de- struction mergers and acquisitions in the banking industry have shown, Lone Star turned the bank successfully around. Considering regulatory restrictions and...

Many authors have identified zero to negative announcement returns for acquirers in traditional mergers and acquisitions. When purchasing state-owned enterprises as compared to public assets the acquirer faces one particular difference: the distinct characteristics of the seller. The selling government is assumed to lack bargaining power and experi...

This paper investigates the long-run performance of initial public offerings of 174 family firms floated in Germany between 1977 and 1998. Family businesses typically come closest to the ideal of non- separation of ownership from control. The fundamental change in ownership structure induced by the flotation represents a change in the governance of...

We analyze the short-run and long-run performance of the largest 100 German firms that experience monthly stock price changes of more than ±20% between 1990 and 2003. The results indicate that the return patterns following large price increases are consistent with the overreaction hypothesis, but those following price declines indicate underreactio...

This paper examines the value implications of mergers and acquisitions (M&A) con- ducted worldwide within the luxury goods industry over the period from 1993 to Sep- tember 2005. The luxury goods industry embraces a few number of companies located in many different countries and largely operating internationally. This event study analysis with the...

Bei der Finanzierung von Krisenunternehmen obliegt die Schlüsselrolle in Deutschland bis heute den Banken, da sich die Frage der Krisenbewältigung oft auf die Gewährung neuer Finanzmittel, v. a. Sanierungskredite, konzentriert und die Banken i. d. R. die Großgläubiger der Krisenunternehmen sind (David, 2001, S. 71;). Die Unternehmensinsolvenzen im...

Purpose – Real estate finance institutions as well as the mortgage banking landscape have undergone a profound restructuring since the late 1980s. This study seeks to examine the value implications of 69 domestic and cross‐border merger and acquisition (M&A) deals of exchange‐listed real estate finance institutions. Design/methodology/approach – T...

Neben den deutschen Automarken gehören deutsche Biere zweifelsohne zu den inter national bekanntesten deutschen Markenartikeln. Zwei Aspekte, die dazu sicherlich ihren Beitrag leisten, sind die emotionale Verwurzelung in der Alltagskultur und die anerkannt hohe Qualität. Während für viele Lebensmittel in Deutschland immer wie der Skandale wegen man...

Nach einhelliger Meinung wird sich die Konosolidierung der deutschen Bankenbranche weiter fortsetzen. Insbesondere bei den Sparkassen ist v.a. durch den Wegfall der öffentlichen Haftungsmechanismen von einem zunehmenden Konsolidierungsdruck auszugehen. Dem gegenüber stehen jedoch überwiegend negative Einschätzungen zum Erfolg bisheriger Sparkassenf...

This article examines the long-run stock market performance of German and Spanish initial public offerings (IPOs) between 1990 and 2000. We distinguish between family- and nonfamily-owned business IPOs by using the power subscale of the F-PEC. Buy-and-hold-abnormal returns (BHAR) are calculated in order to determine abnormal returns. Our results sh...

Between 1990 and 2002 a wave of takeovers was observed in the North American and European energy utilities market. We analyze the impact of these takeovers on market power, studying 70 takeovers of US-American and 69 takeovers of German energy utilities by applying event study methodology. Stock price reactions of acquiring and target firms as well...

The M&A-market has grown rapidly in Germany in the nineties. Therefore M&A-consultancy got more and more important. However, little empirical research has been done to analyze the role investment banks play in the German market. The paper studies in which way M&A-transactions differ if they are performed with or without the guidance of an investmen...

In den letzten Jahren haben öffentlich-rechtliche Kreditinstitute zunehmend Kapitalbeteiligungsgesellschaften gegründet. Wie sind diese unter Corporate-Governance- Gesichtspunkten zu beurteilen? Gibt es Kontrolldefizite bei den Beteiligungsgesellschaften? Können dort anreizkompatible Überwachungsinstrumente zum Einsatz kommen?

Friedrich Hayek conjectured that the free enterprise system is the most effective in making discoveries, and Israel Kirzner refines the conjecture by saying that profit opportunities evoke entrepreneurial discovery. Demmert and Klein (2003) present the first attempt to demonstrate the Hayek/Kirzner conjecture. On the whole, Demmert and Klein (2003)...

This paper investigates the long-run performance of initial public offerings of 208 family firms floated in Germany between 1977 and 1998. Five years after the listing the market-adjusted return was on average −43.39% compared to a broad market index. However, in absolute terms, investors realized a positive return of 32.11% after 60 months.

Consulting for Equity wurde vor allem während des New Economy-Booms bei der Beratung von Unternehmensgründern beobachtet. Das in diesem Beitrag hergeleitete Modell spricht im Bereich der Beratung von Unternehmensgründungen grundsätzlich für die Anwendung von Consulting for Equity. Neben den Möglichkeiten von Consulting for Equity zu einer gegenüber...

Die nachfolgende Untersuchung beschäftigt sich mit den Vergabekriterien von Venture Capital in der Biotechnologie-Branche, wobei versucht wird, durch die Analysen mehr Transparenz in den Venture Capital-Markt und die Arbeitsweise der Venture Capital-Gesellschaften in Deutschland zu geben. Das Hauptaugenmerk liegt auf der Prüfphase der Venture Capit...

Academic research on top executives in general is rare, and even more so for German top executives. This paper examines the existence and size of top executive-specific effects on company performance and policy. In addition, the effects of industry-, company-, and executive-level factors that potentially moderate the influence of top executives on...

The traditional business focus of credit co-operatives is locally oriented and business success is explained by the efficient way to induce monitoring of borrowers. Church-based credit co-operatives in Germany are not that locally oriented but were extraordinary successful over the last decades. First, this analysis describes the special characteri...

We analyze the wealth effects of 114 domestic and international acquisitions announced by Swiss corporations between 1990 and 2001. We find no difference between national and cross-border mergers. This may indicate that the international capital markets are highly integrated and is in contrast to recent empirical findings on a prevailing segmentati...

"We study 98 large M&As of European bidding banks from 1985 to 2000 in order to investigate drivers of excess returns to the shareholders of the targets, the bidders, and to the combined entity of the bidder and the target. Our findings show that many of 13 drivers identified mostly from prior, US-focused research have significant explanatory power...

This note provides an empirical analysis of the potential for heuristic-based approaches to derive a divisional cost of equity from a firm's total cost of capital. Since an empirical relationship between fundamental information and systematic risk has previously been shown in other studies, idiosyncratic information on risk and performance ought to...

Not only in time of its foundation but also in the historic retrospection are the Landschaften, especially the Silesian Landschaft, attributed with considerable success in the allocation of agricultural real-estate loans. This attribution results mainly from the enormous credit volumes that were raised by the owners of manors since the establishmen...

Am 31. Dezember 2002 existierten 90 Beteiligungsgesellschaften der Sparkassen- Finanzgruppe,1 die eine bedeutende Stellung innerhalb des deutschen Marktes für Risikokapital einnehmen. Mit einem Marktanteil von knapp 20% wurde zu diesem Zeitpunkt mehr als jedes fünfte in Deutschland bestehende Beteiligungsengagement durch diese Institute begleitet;2...

Basierend auf der Idee, die Atmosphäre von italienischen Espressobars nachzubilden und diese durch amerikanische Methoden zu vermarkten, schrieb das Unternehmen Starbucks Coffee Company („Starbucks“) eine Erfolgsstory, die in dem Gastronomiemarkt ihres Gleichen sucht. Nachdem Starbucks über 600 Kaffeebars in Nordamerika eröffnet hatte und erfolgrei...

Eine zentrale Annahme der neoklassischen Theorie zum Verhalten von Wirtschaftssubjekten in Märkten unter Unsicherheit geht von rationalem Verhalten im Sinne der Erwartungsnutzentheorie aus. Aufbauend auf dieser Annahme haben sich vielfältige und einflussreiche Forschungsbereiche mit dem Handeln von Menschen unter dem Eindruck von Unsicherheit und R...

Seit Mitte der 80er Jahre durchläuft die europäische Bankenlandschaft eine grundlegende Konsolidierungsphase, die noch lange nicht als abgeschlossen betrachtet werden kann. Treiber der Konsolidierung waren und sind vor allem die andauernde nationale und europäische Deregulierung und Harmonisierung mit dem daraus resultierenden wachsenden Wettbewerb...

Die Bayerische Börse in München hat als Teil ihrer Nischenstrategie mit dem Prädikatsmarkt ein Spezialsegment für junge und kleinere Unternehmen geschaffen. Wie ähnliche Spezialsegmente an anderen deutschen und europäischen Börsen wird der Prädikatsmarkt bisweilen kritisch beurteilt. Geht man dieser Kritik auf den Grund, dann werden Rahmenbedingung...