Browsing by Person "Braegelmann, Kylie Ann"

Now showing 1 - 1 of 1

Gender, sentiment, and market power: Essays on market inefficiencies
(2024) Braegelmann, Kylie Ann; Schiller, Jörg
This dissertation contributes to the literature on financial market inefficiencies. In Chapter 2, my co-author and I investigate a two-pronged regulation in the German private health insurance market, revealing the mixed effectiveness of measures aimed at decreasing insurers’ acquisition costs and increasing value of insurance for consumers in a market where brokers have market power. While the introduction of a minimum cancellation liability period appears effective, a commission cap shows limited success and unintended consequences for new business. In Chapter 3, my co-author and I provide an empirical test of social role theory, analyzing the relationship between gender equality and perception of income fairness in European countries. The results imply that higher gender equality is associated with individuals of all genders perceiving their income as fair, suggesting societal returns to gender equality; moreoever, the results also provide weak evidence that perception of income fairness converges with higher gender equality, which is in line with social role theory. In Chapter 4, my co-author and I explore gender bias in market reaction to CEO announcements, finding a negative reaction to female CEOs, with the bias diminishing over time and varying by firm size. In Chapter 5, I conduct sentiment analysis on new CEO announcements, showing an overall tendency for firms to use positive sentiment in new CEO announcements, and demonstrating that investors react to narrative sentiment, even in a setting where it is unverifiable. Overall, these studies enhance our understanding of market inefficiencies and their regulatory challenges, providing valuable insights for both academic research and practical implications in financial markets.