Gonul Colak

Gonul Colak
Hanken School of Economics · Department of Finance and Economics

PhD

About

35
Publications
24,612
Reads
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813
Citations
Additional affiliations
September 2014 - December 2014
Turkish Central Bank
Position
  • Researcher
August 2007 - April 2014
Florida State University
Position
  • Professor (Assistant)
August 2004 - June 2007
Wichita State University
Position
  • Professor (Assistant)

Publications

Publications (35)
Preprint
Full-text available
This study tests the proposition that higher tournament incentives play a major role in lowering the failure risk of Initial Public Offerings (IPOs). Measuring tournament incentives as the pay gap between the CEO and its subordinate executives, we find that an interquartile change in the distribution of the CEO pay gap translates into a decline in...
Article
Full-text available
This study tests the proposition that higher tournament incentives play a major role in lowering the failure risk of Initial Public Offerings (IPOs). Measuring tournament incentives as the pay gap between the CEO and its subordinate executives, we find that an interquartile change in the distribution of the CEO pay gap translates into a decline in...
Article
Full-text available
We model a firm’s optimal time to voluntarily delist from an exchange. Three key parameters determine optimal delisting time: firm’s growth rate and business risk combined with total costs associated with staying public. Our hazard rate estimations confirm that the aforementioned key variables are significant drivers of delisting time. Rising polit...
Article
Full-text available
Greater partisan alignment among lawmakers enhances their ability to respond rapidly to adverse shocks, but it also undermines the quality of checks and balances and encourages excessive governmental intervention in local areas aligned with the ruling party. We investigate how this form of local policy risk affects IPO underpricing. One standard-de...
Article
Full-text available
We analyze the value of investor relations (IR) strategies to IPO firms. We find that firms that are less visible and have inexperienced management tend to hire IR consultants prior to the issue date. IR consultants help create positive news coverage before an IPO, as reflected in a more optimistic tone of published media. Their presence is associa...
Article
Full-text available
We study the market performance of Chinese companies listed in the U.S. stock exchanges using machine learning methods. Predicting the market performance of U.S. listed Chinese firms is a challenging task due to the scarcity of data and the large set of unknown predictors involved in the process. We examine the market performance from three differe...
Article
Full-text available
We evaluate the influence of the pandemic on global bank lending and identify bank and country characteristics that amplify or weaken the effect of the disease outbreak on bank credit. Using a sample of banks from 125 countries, we apply a difference-in-difference methodology and find that bank lending is weaker in countries that are more affected...
Article
Full-text available
We analyze the value of investor relations (IR) strategies to IPO firms. We find that firms that are less visible and have inexperienced management tend to hire IR consultants prior to the issue date. IR consultants help create positive news coverage before an IPO, as reflected in a more optimistic tone of published media. Their presence is associa...
Article
Full-text available
Using a broad range of uncertainty measures, we show that uncertainty dramatically slows down firms’ adjustments toward their optimal capital structure. At the upper bound, the estimated speed of leverage adjustments almost halves when uncertainty is high. High quality institutions (common law legal origin, more disclosure to congress and/or to the...
Article
Full-text available
We analyze initial public offering (IPO) activity under political uncertainty surrounding gubernatorial elections in the United States. There are fewer IPOs originating from a state when it is scheduled to have an election. To establish identification, we develop a neighboring-states method that uses bordering states without elections as a control...
Article
Full-text available
Political environment is an important determinant of financial intermediation costs, which eventually affects the external financing patterns of firms. Political gyrations create policy uncertainty, which increases the information risk, weakens the investor demand, and reduces the offer size. This raises the securities' placement costs for the fina...
Article
Full-text available
We analyze a firm’s decision to conduct initial public offerings (IPOs) internationally. Global IPOs (issuing both domestically and abroad) raise significantly more capital in the international markets than any other form of IPO. Though over eight percent of firms conducting an IPO between 1995 and 2010 choose to conduct Foreign IPO (issuing only a...
Article
We analyze IPO activity under the political uncertainty surrounding gubernatorial elections in the U.S. We document fewer IPOs originating from a state when it is scheduled to have an election, especially when the election outcome is highly uncertain. To establish identification, we develop a novel neighboring-states method that uses bordering stat...
Article
Full-text available
We analyze the changes in cash holding policies of S&P 500 firms before and after their inclusion in the index. One year after inclusion, the mean industry-adjusted cash holdings of these firms decline by nearly 32% from the year before inclusion. Several factors explain this decline. The precautionary motive for cash subsides due to these firms be...
Article
Full-text available
We hypothesize that managers who receive high equity-based compensation have greater incentive to avoid ownership dilution by timing their seasoned equity offers to periods when investors temporarily overvalue their stock. We provide empirical support for this hypothesis using a measure of equity-based compensation that reflects the sensitivity of...
Article
Full-text available
We analyze IPO activity under political uncertainty surrounding gubernatorial elections in the U.S. There are fewer IPOs originating from a state when it is scheduled to have an election. To establish identification, we develop a neighboring-states method that uses bordering states without elections as a control group. The dampening effect of elect...
Article
Full-text available
This study analyzes the IPOs of the firms that are eventually included in one of the three well-known indices: the S&P 400, the S&P 500, or the S&P 600 Indices. The determinants of each IPO firm's odds of inclusion into a particular index are estimated. Other offer related characteristics of these index firms are also investigated. IPOs that are as...
Article
Full-text available
Purpose – The purpose of this paper is to investigate the initial public offerings (IPOs) of the firms that are eventually included in one of the S&P 400, the S&P 500, or the S&P 600 Indices. Do these firms have very different IPO features than the rest of the IPOs? Design/methodology/approach – The control sample is formed of IPOs that are not inc...
Article
Full-text available
A two-stage stock-financed merger occurs when an acquiring firm first issues shares in the equity markets, and engages in a cash acquisition shortly afterward. Such deals are of special interest, because they offer an experiment to test two important hypotheses involving the interactions of corporate finance with the capital markets: the market seg...
Article
Full-text available
We analyze the relationship between the primary market characteristics and the secondary market trading frictions of new stocks. We identify major differences across portfolios of IPO stocks grouped by market heat, underpricing, offer price, underwriter prestige, and VC backing. IPOs issued in hot markets, IPOs with low offer price or low reputatio...
Article
Full-text available
At any point in time a firm faces three restructuring choices: diversify, refocus, or do nothing. This study analyses the causes and the consequences of these actions in a unified framework using the appropriate methodologies. Various factors, such as firm's characteristics and multinational nature, its industry's characteristics, its exchange and...
Article
This paper analyzes the common factor that drives the cyclical movements in the corporate event waves. We show that this common corporate factor is closely linked to the economic business cycles. We, first, document the statistical and the time-series properties of the corporate event waves to determine the commonalities, the interdependence, and t...
Article
Full-text available
We develop a model in which time-varying real investment opportunities lead to time-varying adverse selection in the market for IPOs. The model is consistent with several stylized facts known about the IPO market: economic expansions are associated with a dramatic increase in the number of firms going public, which is in turn positively correlated...
Article
We develop a model in which time-varying real investment opportunities lead to time-varying adverse selection in the market for IPOs. The model is consistent with several stylized facts known about the IPO market: economic expansions are associated with a dramatic increase in the number of firms going public, which is in turn positively correlated...
Article
Full-text available
We examine whether spin-offs or divestitures cause improvements in conglomerate investment efficiency. At issue are endogeneity of these restructuring decisions and correct measurement of investment efficiency. Endogeneity is a problem because the factors that induce firms to spin off or divest divisions may also improve investment efficiency; meas...

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