Professor Karèn Simonyan recently published new papers in two of the nation's top finance journals.
His first article, set to appear in the Journal of Financial Economics, analyzes how a central position of a lead underwriter in its network of investments banks affects initial public offerings (IPOs) underwritten by it. Professor Simonyan and his co-authors find that the more central lead underwriters tend to achieve more favorable IPO characteristics. This is accomplished by attracting greater investor attention to the IPOs underwritten by them.
His second article, written in collaboration with Suffolk Professor Alexandros Prezas, focuses on how firms choose between two types of corporate divestitures—spin-offs and sell-offs. Their findings, published in the Journal of Corporate Finance, suggest that firms with lower market valuations relative to their intrinsic value are more likely to spin off their assets. Spin-offs occur more often during periods of investor optimism and are linked to more positive announcement effects than sell-offs. Furthermore, assets that under-perform are more likely to be sold off. Finally, firms that sell off their assets exhibit better post-divestiture long-term operating and stock return performance compared to those that spin off their assets.