Private firms’ cash holding decisions: The role of risk attitudes

2016-10-13 10:05:50

Dear students, faculty and staff, Nazarbayev University Graduate School of Business invites you to Research Seminar “Private firms’ cash holding decisions: The role of risk attitudes” by Valerio Poti

WHEN: Tuesday, October 11th, 11.30 a.m. – 12.30 p.m.

WHERE: Block C-3/new GSB/GSPP Building, 3rd floor, Room 3037

ABSTRACT:

“In private firms, there is an incomplete separation of the finances of influential stakeholders, especially the controlling shareholders, from the finances of the firm. We therefore complement the traditional precautionary motive with an additional, novel precautionary motive that takes into account stakeholders’ risk attitudes. Under this motive, the firm-level demand for savings and cash-holding decisions are driven by determinants similar to those that drive the demand for savings by households and their holdings of cash. In our sample of private firms, this novel precautionary motive naturally complements or even supplants the traditional one”

Seminar Announcement (1) (1)_Poti (1)

SPEAKER:

Valerio is Professor of Finance in the Business School of University College Dublin, where he teaches portfolio and risk management as well as MBA corporate finance. He was previously in Dublin City University, where he taught courses on quantitative finance and risk modelling, led the development of the renewed M.Sc. in Finance and was head of Economics, Finance and Entrepreneurship. He graduated in Banking and Finance from Bocconi University Milan, gained a PhD in Finance from Trinity College Dublin, and subsequently conducted post-doctoral research in the Finance department of New York University Stern, working with Professor Richard Levich. His research interests include asset pricing, performance attribution, market efficiency, behavioural finance, financial econometrics. His papers have been published or are forthcoming in International peer reviewed journals such as Management Science, the International Journal of Forecasting, the Journal of Banking and Finance, the Journal of International Money and Finance, European Financial Management, and he has contributed to practitioner-oriented books on portfolio and risk management. He also engages in consulting activities on risk and performance attribution and on issues related to the usage of derivatives to generate economic value. In the past, he taught International Finance at Queen’s University Belfast and, before moving to academia, he worked as an equity option market maker on the Milan derivatives exchange and was the head of the Financial Engineering desk of the Dublin subsidiary of Banca Monte dei Paschi di Siena.