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作者：Guenzel, Marius
作者单位：University of Pennsylvania
摘要：Sunk costs are unrecoverable costs that should not affect decision making. I provide evidence that firms systematically fail to ignore sunk costs and that this leads to significant investment distortions. In fixed-exchange-ratio stock mergers, aggregate market fluctuations after parties enter into a binding merger agreement induce plausibly exogenous variation in the final acquisition cost. These quasi-random cost shocks strongly predict firms' commitment to an acquired business following deal...
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作者：Frame, W. scott; Huang, Ruidi; Jiang, Erica xuewei; Lee, Yeonjoon; Liu, Will shuo; Mayer, Erik J.; Sunderam, Adi
作者单位：Southern Methodist University; University of Southern California; Federal Reserve System - USA; Federal Reserve Bank - Richmond; City University of Hong Kong; University of Wisconsin System; University of Wisconsin Madison; Harvard University; National Bureau of Economic Research
摘要：We study links between the labor market for loan officers and access to mortgage credit. Using novel data matching mortgage applications to loan officers, we find that minorities are underrepresented among loan officers. Minority borrowers are less likely to complete mortgage applications, have completed applications approved, and to ultimately take up a loan. These disparities are reduced when minority borrowers work with minority loan officers. These pairings also lead to lower default rates...
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作者：Copeland, Adam; Martin, Antoine
作者单位：Federal Reserve System - USA; Federal Reserve Bank - New York; Swiss National Bank (SNB)
摘要：This paper uses new data to provide a comprehensive view of repo activity during the 2007 global financial crisis. We show that activity declined much more in the bilateral segment of the market than in the tri-party segment. Surprisingly, a large share of the decline in activity is driven by repos backed by Treasury securities. Further, a disproportionate share of the decline in repo activity is connected to securities dealer's market-making activity. In particular, the evidence suggests that...
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作者：Kargar, Mahyar; Lester, Benjamin; Plante, Sebastien; Weill, Pierre-Olivier
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; Federal Reserve System - USA; Federal Reserve Bank - Philadelphia; University of Wisconsin System; University of Wisconsin Madison; University of California System; University of California Los Angeles; National Bureau of Economic Research; Center for Economic & Policy Research (CEPR)
摘要：Customers in over-the-counter (OTC) markets must find a counterparty to trade. Little is known about this process, however, because existing data consist of transaction records, which only reveal the outcome of a search. Using data from a trading platform for corporate bonds, we unpack the search process. We analyze how long it takes customers to trade and how dealers' offers evolve across repeated inquiries. We estimate that it takes two to three days to complete a transaction after an unsucc...
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作者：Pazarbasi, Altan
作者单位：Ihsan Dogramaci Bilkent University
摘要：This paper provides novel empirical evidence that cash-rich firms have higher equity payouts and higher stock prices in response to expansionary monetary policy surprises. Stock prices rise despite weak cash-flow, investment, and credit responses to monetary policy. I rationalize the empirical evidence in a heterogeneous-firm New Keynesian model where firms finance investment with cash and equity issuance. Monetary easing weakens precautionary cash demand, leading cash-rich firms to optimally ...
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作者：Bian, Jiangze; Da, Zhi; He, Zhiguo; Lou, Dong; Shue, Kelly; Zhou, Hao
作者单位：University of International Business & Economics; University of Notre Dame; Stanford University; National Bureau of Economic Research; Hong Kong University of Science & Technology; Centre for Economic Policy Research - UK; Yale University; Tsinghua University
摘要：Using granular data covering both regulated (brokerage-financed) and unregulated (shadow-financed) margin accounts in China, we provide novel evidence on retail investors' margin trading behavior and its price implications. We first show that retail investors' decisions to lever up in stock trading despite the hefty borrowing cost is related to their lottery preferences. We then show that margin borrowing affects investors' trading behavior-investors are more likely to liquidate their holdings...
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作者：Abramson, Boaz
作者单位：Columbia University
摘要：I propose a dynamic equilibrium model of rental markets that endogenously gives rise to defaults on rents and evictions. In the model, eviction protections make it harder to evict delinquent renters, but higher default costs to landlords increase equilibrium rents. I quantify the model using micro data on evictions, rents, and homelessness. I find that stronger eviction protections exacerbate housing insecurity and lower welfare. The key empirical driver of this result is the persistent nature...
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作者：Engelberg, Joseph; Guzman, Jorge; Lu, Runjing; Mullins, William
作者单位：University of California System; University of California San Diego; Columbia University; National Bureau of Economic Research; University of Toronto
摘要：Republicans start more firms than Democrats. In a sample of 40 million party-identified Americans between 2005 and 2017, we find that 5.5% of Republicans and 3.7% of Democrats become entrepreneurs. This partisan entrepreneurship gap is time-varying-Republicans increase their relative entrepreneurship during Republican administrations and decrease it during Democratic administrations, amounting to a partisan reallocation of 170,000 new firms over our 13-year sample. We find sharp changes in par...
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作者：Pedersen, Lasse Heje
作者单位：Copenhagen Business School; Centre for Economic Policy Research - UK
摘要：Green finance-including environmental, social, and governance investing and sustainable finance regulations-is widespread, but can it substitute for carbon pricing in fighting climate change? In a unified model, I show that (i) when carbon prices reflect the social cost of carbon, green finance should not be used; (ii) when carbon prices are too low, green finance can implement the social optimum if each firm's cost of capital can be set to its sustainable discount rate, which increases with t...
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作者：Guernsey, Scott; Guo, Feng; Liu, Tingting; Serfling, Matthew
作者单位：University of Tennessee System; University of Tennessee Knoxville; Iowa State University
摘要：Based on a comprehensive data set of classified (staggered) boards covering nearly all U.S. public firms from 1991 to 2020, we show that contrary to conventional wisdom, the use of classified boards remains widespread. Moreover, classified board usage over a firm's life cycle depends significantly on the decade the firm matured or year it went public. While classified boards were rarely removed in the 1990s, firms became more likely to declassify as they matured during the following decades. D...
