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Faculty Research When it comes to corporate governance, hedge funds are the new sheriffs in town. That�s the take-away of �Do Activists Turn Bad Bidders into Good Acquirers?� Associate Professor of Finance Nickolay Gantchev and his co-authors reveal new insights about the mergers and acquisitions strategy of firms that shareholder activists target.

Faculty Research Getting inside the mind of the chief executive officer is a difficult research avenue. Knowledge about how CEOs process information, their cognitive style, has been relatively sparse. Strategy Professor Daniel Zyung of �鶹�� Cox and co-authors unpack the cognitive mechanisms of CEOs in new research � and reveal how and why it matters. "Basically, this is a study about CEOs� information processing style," Zyung says, "with many important implications, including their firm�s growth strategies."

Faculty Research The emergence of U.S. shale oil has expanded the global supply of oil. New research notes that the long-run impact of shale oil will depend on how much can be produced and how much it will cost. Few have good answers. In recent research, finance professor and energy expert James Smith of �鶹�� Cox with co-author Thomas Lee determine what portion of known shale resources are economically viable at various price points and how many wells are likely to be drilled. So far, only a small portion of drilling sites have factored into the shale oil boom, according to Smith, and we have only depleted a fraction of U.S. shale resources.

Faculty Research The U.S. healthcare system is the most expensive system in the world. Identifying ways to lower costs and have better health outcomes is a primary goal for health care managers and providers, policymakers and consumers. In new research, ITOM Professor Vishal Ahuja of �鶹�� Cox and co-authors show that better continuity of care lowers costs and wasted effort, reduces time to see specialists, and produces significant savings in hospital system resources. They identify how "gatekeepers" are key to a more optimal and healthier system.

Faculty Research As policymakers around the globe continue to debate options to incentivize retirement savings, new research uncovers some game-changing facts. The two main competing options consist of traditional tax-deferred savings vehicles like 401(k)s and IRAs, in which savers contribute pretax money and pay tax on withdrawals, or Roth-type plans, whereby savers pay taxes first and withdraw funds tax-free upon retirement. Which type of scheme is better depends on which side of the table one sits. In their paper, �鶹�� Cox Finance Professor Mattia Landoni and co-author Zeldes discover that under a Roth-type regimen, government fares better, largely because of the investment fees that government implicitly pays in traditional tax-deferred accoun

Faculty Research Regulators of financial markets, including the Federal Reserve Bank and the Securities and Exchange Commission, worry about a liquidity crisis in the corporate bond market. The financial market crisis of 2008-2009 involved domino-like liquidity shocks and regulators wish to steer clear of them if they can help it. In new research, �鶹�� Cox Finance Professors Venkataraman and Jotikasthira show that some bond mutual funds are filling the role of a liquidity supplier, alongside a decline in dealer participation in market-making activities.

Faculty Research Today, many crowd-sourced investment research venues and platforms co-exist on the Internet, with new competitors continuing to arrive on the scene. These new entrants are becoming a source of information for investors and capital markets that rival the incumbent sell-side analyst research model. Technological innovation is making it so, along with smart entrepreneurs identifying market opportunities. In new research, �鶹�� Cox Accounting Professor Stanimir Markov and co-authors examine how this increased competition is shaking up the status quo.

Faculty Research The findings will help inform policymakers� rulemaking to prevent future crashes and better design market structures.

Faculty Research The use of big data in the health care industry, the largest sector of the economy, offers many benefits for the overall economy, businesses, and the health and well-being of people. In a first-of-its-kind study, �鶹�� Cox ITOM Professor Vishal Ahuja and co-authors show how the use of data can validate life-changing health care findings. Additionally, this new approach using big data demonstrates how regulatory agencies can advance their governance missions by monitoring public safety with more robust, real-time analytical methods.

Faculty Research With literally troves of corporate information available online for analysts to sift through, how can firms differentiate their message and convey complex, meaningful information to those who need it? The increasing number of analyst days, a long-form presentation by publicly-listed companies, indicate a trend toward a greater demand for face time with management. In novel research, Accounting Professor Stan Markov of �鶹�� Cox and co-author Marcus Kirk study analyst/investor days as a disclosure medium that large firms with complex operations use to deepen stakeholders' understanding about the firm's outlook and valuation.

Faculty Research Are people hard-wired to reach agreement, even when a deal is less than optimal or below a bottom line? According to new research by Management Professor Robin Pinkley and co-authors, as if force of habit, when faced with an offer people are reaching agreements and sealing deals when not agreeing might be a more rational choice. This phenomenon is based on the tendency of people being averse to impasse and attracted to agreement.

Faculty Research The oil and gas industry has received a bad wrap about drilling for shale gas. Since late 2008, when prices collapsed owing to demand destruction from the economic crisis and an abundance of supply, prices of natural gas have remained low. From an all-time high of $14 per mcf (thousand cubic foot) they have fallen to under $3 today. Critics have charged that too many gas wells have been drilled given the low prices, and that the gas boom is unsustainable. �鶹�� Cox Finance Professor James Smith's new research says the facts do not support that claim.

Faculty Research The conventional method used by the oil and gas industry to report on upstream operations and results distorts profitability and valuations. Industry practice is to use "barrels of oil equivalent" or BOE� a measure that combines oil and gas volumes based on thermal parity, or the energy content of the source. Research by Finance Professor James Smith, the Maguire Chair of Oil and Gas Management, shows why and how the BOE convention has overstated the cost of adding reserves, the principal asset held by these firms. This comes at a time when the industry can scarcely afford miscalculations to their detriment.

Faculty Research Companies buy back stocks for a variety of reasons. One rationale is a key motive for a new study: Managers of undervalued firms use stock repurchases as a mechanism to signal firm value. Curiously, Finance Professor Stacey Jacobsen of �鶹�� Cox and co-author Utpal Bhattacharya find a large number of firms announce share repurchases but do not actually follow through with the buyback. The stock market tends to view repurchase announcements as good news, according to its reaction.

Faculty Research In the U.S., shareholder voting and activism is increasingly used to influence firm policy. New research by �鶹�� Cox Finance Chair Darius Miller and co-authors suggests that shareholder voting can be an effective governance mechanism in countries outside the U.S. "This is important," says Miller, "since in many countries outside the U.S., the need for governance is greatest." The authors set out to test shareholder activism in global markets in a first-of-its-kind, large-scale study. Prior to this paper, there was not any evidence on whether shareholder voting in other countries was effective or not.