Meet Taylan Mavruk – new professor with focus on finance
Congratulations to Taylan Mavruk - newly appointed to professor of Business Administration with specialization in Corporate Finance.
What is your research about?
-My research has covered the broad areas of local and birthplace biases of investors, insider trading, ownership concentration measures, local ownership and capital structure, the role of republished news tone in local stock ownership, the effects of social networks on portfolio choice, mutual fund flows and performance, and economics of patents. Some of these studies are ongoing work.
One of my most recent research is on whether locally directed social performance, jointly with local ownership, provides firms with comparative advantage and business materiality and thereby influence long-term firm value.
What can we learn from your research?
-My research has implications for investors, firms, and media. Regarding locally biased portfolios, both individual and institutional investors may benefit from my findings that concentrated portfolios do not outperform well diversified portfolios. For firm cost of capital and firm decision making, there is a tradeoff. On the one hand, we know that locally biased ownership causes illiquidity in local stocks. On the other hand, locally biased owners have a monitoring role in firms, which leads to lower debt levels. The latter effect seems to be more prominent.
Regarding the role of media in financial markets, I have been able to show that the firm specific republished news event garners attention as it diffuses to other regional outlets in a different news tone. Therefore, media should be extra careful in choosing words when they write about, particularly, firm specific stale news.
Regarding social responsibility, firms should pay attention to local responsibility because locally directed social performance seems to provide firms with comparative advantage and business materiality that enhances long-term firm value.
What do you like most with your job?
-On the research side, I have been able to work with the research ideas that I am interested in. I think this flexibility is important for creativity. On the education side, my students are motivated and I think having motivated students is the best pay-off one could have. I also enjoy the interactions and discussions with my colleagues at the School.