Marwin Mönkemeyer

Research Fellow

Curriculum Vitae

Marwin Mönkemeyer is a Research Fellow at the Hamburg Financial Research Center (HFRC) and a PhD scholar at the Department of Corporate Finance and Asset Management at the University of Hamburg, Germany. He will be a Visiting Associate at Cambridge Judge Business School and at the Cambridge Endowment for Research in Finance (CERF) from February through June 2022. His research interest broadly lies in Empirical Corporate Finance, Social Finance, Institutional Investors, and International Finance. A central question in Marwin’s research is how social norms shape institutional investors’ cross-border investment behavior.

Ausgewählte Publikationen

Foreign bias in institutional portfolio allocation: The role of social trust

Wolfgang Drobetz, Marwin Mönkemeyer, Ignacio Requejo, Henning Schröder
Journal of Economic Behavior & Organization | 10/2023
We study the role of social trust in the equity allocation decisions of global investors using a large sample of institutionally managed portfolios of 8,088 investors from 33 countries over the 2000 through 2017 period. The negative relationship between social trust and foreign bias suggests that institutional investors from high-social trust countries are less prone to underinvesting in foreign equity. Our results provide credence to an information-based explanation, indicating that social trust reduces foreign bias by compensating for the lack of information about foreign stock markets. Moreover, the effect of social trust on foreign bias is stronger if host-country institutions are weak, while it vanishes when the host country is characterized by strong institutions. The informal institution of social trust compensates for the lack of well-functioning formal country-level institutions in international portfolio decisions. Finally, the allocation effect resulting from social trust is different from “blind” trust. The portfolios of high-trust investors exhibit higher cross-country diversification and an enhanced portfolio risk-return trade-off.

Institutional blockholder networks and corporate acquisition performance

Gishan Dissanaike, Wolfgang Drobetz, Marwin Mönkemeyer, Henning Schröder
Academy of Management Proceedings | 07/2023
We examine 17,207 U.S. mergers and acquisitions by public firms over the 1980–2019 period and find that the acquirer abnormal announcement returns are higher for firms held by more central investors in the network of active institutional blockholdings. This finding is robust to firm and deal characteristics, and it also extends to alternative network and return measures. To provide evidence on causality, we exploit extreme industry returns that lead to plausibly exogenous variation in investors’ monitoring ability. The positive effect of blockholder centrality on acquirer abnormal announcement returns only exists in information-sensitive (i.e., private) deals and only among institutions that have a comparative advantage in exploiting monitoring information. Our findings suggests that institutional investors obtain an information advantage through the network, which increases their monitoring ability.