MANHATTAN | NEW YORK WORLD FINANCE CONFERENCE JULY 29-31, 2016 Livro cs6_V28.indd 1 15/07/16 10:44 Founded by the Vincentian Fathers in 1870, St. John's University is a private, Catholic university with three campuses in New York (Queens, Manhattan, and Staten Island) as well as two campuses in Europe (Rome and Paris). In addition, St. John's has a graduate center in Oakdale, New York. St. John's is organized into five undergraduate and six graduate schools. The university has nearly 25,000 full- and part-time undergraduate and graduate students at the University’s six locations, including non-resident students representing 47 states, the District of Columbia, Guam, Puerto Rico, the US Virgin Islands, and 116 countries. The Princeton Review named St. John’s a Best Northeastern College. St. John’s also appears in The Princeton Review’s 2013 Edition of “The Best 377 Colleges.” For almost ninety years the Tobin College of Business has offered opportunities for individuals from throughout the world to study in New York City’s dynamic business and cultural environment. The curriculum offered by the business school emphasizes a strong cross-functional understanding of business practice, experiential learning, and a global perspective, all in a values-based context. Many Tobin alumni currently lead great organizations worldwide. Livro cs6_V28.indd 2 15/07/16 10:44 NEW YORK, MANHATTAN '16 WORLDFINANCECONFERENCE WELCOME ADDRESS JULY 2016 Welcome to the World Finance Conference in New York, United States. I would like to thank Professor Iftekhar Hasan, Corrigan Chair in International Business and Finance at Gabelli School of Business, Fordham University, Professor René M. Stulz, Chair of Banking and Monetary Economics and Director of The Dice Center for Financial Economics, Ohio State University, and Professor Markus K. Brunnermeier, Edwards S. Sanford Professor of Economics and Director of the Bendheim Center for Finance, Princeton University. I would also like to express my most sincere appreciation to the program co-chair, Mikael Bergbrant, Assistant Professor of Finance at St. John’s University and all the staff from the St. John's University. Special thanks to the St. John's University, the host institution of this wonderful event. I wish every participant a productive conference and an enjoyable stay in New York. João Paulo Vieito, MBA, MSF, Ph.D. CHAIRMAN World Finance Conference 3 Livro cs6_V28.indd 3 15/07/16 10:44 WORLDFINANCECONFERENCE Welcome to the 2016 World Finance Conference at St. John’s University’s Manhat- tan campus. The Peter J. Tobin College of Business at St. John’s University is very proud to host this important conference that grapples with world financial issues. We believe that being here in the heart of the financial capital of the world is invigorating—and we hope that it is intellectually stimulating to the conference. The study of economics and finance is foundational to all of our programs at the Tobin College of Business. Moreover, we have undergraduate degrees (Bachelor of Science) that specialize in economics or finance, and a master’s degree (Mas- ter of Science) in investment management, preparing students for the Chartered Financial Analyst (CFA) certification. Our Student Managed Investment Funds, both undergraduate and graduate, provide an experiential learning experience for students that is exceptional—and an added bonus is that both funds typically yield higher than expected returns. The programs offered by the Tobin College of Business are accredited by AACSB—International. The faculty in our Department of Economics & Finance are outstanding scholars, with a wide array of intellectual contributions that range from the top-level theoretical journals to popularly ac- cessible practical journals and books. In the face of the current disequilibrium in the global economy and pundits touting a pending crisis in the global financial system, it is important for scholars from around the world to gather to share their views. We hope that the speakers, pa- per presentations, special sessions, and most importantly, the discussions at this conference will promote a valuable exchange of ideas in research, teaching, and managerial practices and will provide fertile ground for cross-country collabora- tions that might bring us closer to resolving the current economic dilemma. The Tobin College of Business at St. John’s University is delighted to have been selected as this year’s hosts for the World Finance Conference. We are grateful to the Conference Chair, Joao Paulo Vieito, School of Business Studies, Polytechnic Institute of Viana do Castelo, and to Conference Co-Chair, Mikael Bergbrant, Tobin College of Business, St. John’s University, for affording us this opportunity. We hope that you find the conference meaningful and that you take away a treasure of valuable insights. We also hope that you will find some time to enjoy the many attractions of The Big Apple. Welcome to New York! Victoria Shoaf, Ph.D., CPA Dean Peter J. Tobin College of Business St. John’s University 4 Livro cs6_V28.indd 4 15/07/16 10:44 NEW YORK, MANHATTAN '16 WORLDFINANCECONFERENCE On behalf of St. Johns University, I would like to welcome all participants to our country, city, and University. I hope you will enjoy the conference at our new state-of-the-art Manhattan campus. New York is a very special city in that it is extremely diverse, just like the World Finance Conference, and there is something for everyone to enjoy! NYC has more than 8.5 million residents throughout the five boroughs, and more than 25,000 places to eat. I am sure that many of you come here to get a taste of NY in addition to attend the con- ference, and I am sure the city will not disappoint. Although there are so many different things to do in NYC that your trip here will only allow you to start scratching the surface of the city, here are a few things that I enjoy and would recommend you to do while you are here: 1. Take a walk in Central Park (or perhaps a morning run).......................... 2. Attend a Broadway show (you can buy tickets directly at the theaters or discounted tickets at “TKTS Discount Booth” in Time Square)............. 3. Visit one of the many museums NYC has to offer (my favorites are the Museum of Modern Art (MOMA) and the Guggenheim Museum)............. 4. Take a ride to the Statue of Liberty and Ellis Island (or jump on the free Staten Island ferry to view the Statue from a distance)............. 5. Walk over the Brooklyn Bridge (and if time allows, stroll around Brook- lyn Bridge Park where the view of the Manhattan skyline is amazing)..... 6. The views from Rockefeller Center are great, especially around sunset. If you prefer to have a drink while taking in the views, 230 5th Avenue has a rooftop bar with beautiful views........................................................ 7. Stop by the market in Union Square and buy some locally sourced food (to eat or bring home) Very special thanks go to Dean Victoria Shoaf and the Peter J. Tobin College of Business at St. John's University for making this conference possible. I would also like to thank João Paulo Vieito for providing us the opportunity to host this conference. Finally, thank you for visiting us. If you have any questions about anything re- garding our University, conference or city, just ask! Mikael Bergbrant, MBA, MSF, Ph.D. Assistant Professor of Finance Peter J. Tobin College of Business St. John’s University 5 Livro cs6_V28.indd 5 15/07/16 10:44 WORLDFINANCECONFERENCE SCIENTIFIC COMMITEE (Alphabetical Order) CHAIRMAN: João Paulo Vieito Polytechnic Institute of Viana do Castelo, Portugal Almir Ferreira de Sousa Giorgio Valente São Paulo University, Brazil City University of Hong Kong, Hong Kong Andrey Karolyi Gonzalo Cortazar Cornell University, United States Pontificia Universidad Católica de Chile, Anjan Thakor Chile Washingthon University, United States Guido Mantovani Bhagwan Chowdhry Ca´ Foscari University, Italy Indian School of Business and Universi- Harjoat Bhamra ty of California at Los Angeles (UCLA), Emperial College of London, United United States Kingdom Carlos P. Maquieira Henrik Cronqvist Universidad Autonoma de Chile China Europe International Business Carlos Pombo School (CEIBS), China Universidad de los Andes, Colombia Hideaki Kato Christian Wolff Nagoya University, Japan University of Luxembourg, Luxemburg Huining Henry Cao Christopher Polk Cheung Kong Graduate School of Busi- London School of Economics, United ness, China Kingdom Ian Cooper Cynthia J. Campbell London Business School, United Kingdom Iowa State University, United States Ike Mathur David Ding Southern Illinois University, United States Massey University, New Zealand James R. Lothian Dilip K. Ghosh Fordham University, United States American University of Cairo, Egypt Jay Ritter Douglas T. Breeden University of Florida, United States Duke University, United States Jonathan Karpoff Eduardo S. Schwartz University of Washington, United States University of California at Los Angeles Joseph P. H. Fan (UCLA), Unites States Chinese University of Hong Kong, Hong Kong Fariborz Moshirian Julian Franks University of New South Wales, Australia London Business School, United Kingdom Finn Østrup Jun - Koo Kang Copenhagen Business School, Denmark Nanyang Business School, Singapore Franklin Allen Lars Oxelheim The Wharton School, University of Lund University, Sweden Pennsylvania, United States Lloyd P. Blenman Ghon Rhee University of North Carolina-Charlotte, University of Hawaii, United States