Guosong Xu is an Assistant Professor of Finance at Rotterdam School of Management at Erasmus University.

Research interests: 
Corporate Finance, Behavioral Finance

Department of Finance, RSM
Mandeville Building T08-50, Burgemeester Oudlaan 50
3062 PA Rotterdam

Links to SSRN and RSM official page


The Role of Internal M&A Teams in Takeovers
Review of Finance, 2021, with Nihat Aktas, Audra Boone, Alexander Witkowski, and Burcin Yurtoglu

Determinants and Value Effects of Early Announcements in Takeovers 
Journal of Corporate Finance, 2018, with Nihat Aktas and Burcin Yurtoglu
Best AFFI 2017 Conference Paper; Media coverage: Les Echos 

Working Papers:

Friends in Media
Best Paper in Corporate Finance at the SFS Cavalcade North America 2021

We test the independence of news content from financial journalists’ social networks and the real effects of journalist connections in the financial markets.

Conferences: EFA 2020, EFA Doctoral Tutorial 2018, FIRS, SFS Cavalcade North America

Do Salient Climatic Risks Affect Shareholder Voting?
with Eliezer Fich
Media coverage: The FinReg Blog of Duke University; Drexel News Blog; Finance Digest; Investment Week; Global Banking & Finance Review; Wealth Professional; Corporate INTL; IDN Connected; Business in The News; UK Today

We find that shareholders in locations recently hit by hurricanes significantly increase their support for environmental proposals. More favorable voting following a hurricane strike has real consequences: Climate-related proposals are more likely to pass, and when they do, firm performance weakens.

The Real Effects of Trend-seeking and Extrapolation: Evidence from M&As
with Eliezer Fich, Revise and Resubmit at Journal of Financial and Quantitative Analysis

Industry-peers’ earnings surprises announced just hours before the M&A announcements correlate with the acquirers’ M&A announcement return. Biased reactions due to salience can best explain our findings. We show that the salience effects distort the M&A bidding process.

Conferences: AFA, Research in Behavioral Finance Conference

How Do Tax Increases Affect Investment Allocation within Multinationals?
with Antonio De Vito and Martin Jacob
Media coverage: LSE Business Review 

We study how tax increases transmit across countries through multinationals’ internal networks of subsidiaries. We find that local business units cut capital investment in response to foreign tax increases. Two channels can explain these spillovers: production linkages and financial constraints. Aggregate investment and employment decline with higher exposure to foreign tax increases.

Conferences: Berlin-Vallendar Tax Conference, European Central Bank

Foreign Bribery and Takeovers: International Evidence

Using exogenous implementations of anti-bribery laws cross 41 countries, I find that criminalizing acquirers for foreign bribery reduces aggregate cross-border M&A activities by approximately 30%, acquirers’ gains by over half, and bid premium by 10%.

Investment under Uncertainty: Do Firm Boundaries Matter?
with Jingyuan Mo

We examine how firms’ vertical structure affects investment under output price uncertainty. Exploiting the oil exploration and production industry, we find that vertically integrated producers cut investments significantly more than do standalone producers under exogenous oil price uncertainty shocks. This finding is consistent with the real option model of investment.