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University of Cambridge

Essays on (Frictions in) Corporate Finance

Abstract

dc:description.abstract

This dissertation is composed of three related essays that contribute to the literature on corporate finance. My first chapter proposes a new, direct measure of managerial attention to financial markets, derived from earnings call transcripts covering 98,010 firm-year observations between 2007 and 2023. Firms led by more attentive managers display stronger investment–price sensitivity, offering the first direct evidence in support of price feedback theory. Greater attention also improves managers’ timing ability, enabling them to access external capital more readily when financing needs arise and to adjust more effectively to changing market conditions. Finally, I present a theoretical model, corroborated by empirical evidence, that explains why it may be rational for some managers to remain inattentive. In the second chapter, we contribute to addressing a central challenge in sustainable investing—distinguishing value from values (Starks 2023). Exploiting the Tick Size Pilot Program (TSP)—a natural experiment that raised participating firms’ tick size from one cent to five cents—we show that green institutional investors with relatively low willingness to pay for environmental objectives (i.e., value-oriented investors) exert a significant influence on corporate environmental policies. During the TSP, these value investors became less likely to divest after environmental incidents at treatment firms compared with control firms. Consequently, treatment firms experienced declines in their environmental ratings, especially those most vulnerable to exit threats over environmental issues. In the third chapter, we explore how the specificity of legal regulations influences crowdfunding activity. Analyzing a global sample of digital finance, we find that clear and detailed regulations substantially increase crowdfunding volumes. Using proxies for regulatory detail across three types of countries—those that sometimes, always, or never had regulations—and applying a series of difference-in-differences regressions, we document a strong positive link between regulatory clarity and the volume of debt crowdfunding, with little effects on equity crowdfunding. Clearer regulations appear to stimulate the establishment of new crowdfunding platforms rather than merely concentrating activity within existing ones.

Degree

thesis:*
Name dc:type.qualificationname
Doctor of Philosophy (PhD)
Level dc:type.qualificationlevel
Doctoral
Grantor dc:publisher.institution
University of Cambridge
Year dc:date.issued
2025

Author and committee

dc:creator, dc:contributor.*
Author dc:creator
  • Ran, Zhenkai
Advisor dc:contributor.advisor
  • Kirilenko, andrei

Subjects

dc:subject × 5

Rights

dc:rights
Language dc:language
eng

Identifiers

dc:identifier.*
DOI dc:identifier.doi
https://doi.org/10.17863/CAM.123699
OAI identifier oai:identifier
oai:www.repository.cam.ac.uk:1810/393323

Chain of custody

source
Harvested from
Cambridge University
Base URL
api.repository.cam.ac.uk/server/oai/request
Last updated
2026-07-22
Source record
OAI-PMH GetRecord
citation

Ran, Zhenkai. Essays on (Frictions in) Corporate Finance. Doctoral thesis, University of Cambridge, 2025. https://doi.org/10.17863/CAM.123699