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作者：Calluzzo, Paul; Kedia, Simi
作者单位：Queens University - Canada; Rutgers University System; Rutgers University New Brunswick
摘要：We study fund-firm connections that arise when firm executives and directors serve as fund directors. We find that connected funds are significantly more likely to vote with management in proposals with negative Institutional Shareholder Services (ISS) recommendations or low shareholder support. As our data show that management support does not exist either before connection formation or after its termination, this result is unlikely to be caused by omitted factors. Rather, the connected fund'...
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作者：King, Thomas B.
作者单位：Federal Reserve System - USA; Federal Reserve Bank - Chicago
摘要：With risk-averse arbitrageurs and an effective lower bound (ELB) on nominal rates, nonlinear interactions among short-rate expectations, bond supply, and term premia emerge in equilibrium. These interactions, which are absent from affine models, help explain the observed behavior of the yield curve near the ELB, including evidence about unconventional monetary policy. The impact of both short-rate expectations and bond supply are attenuated at the ELB. However, in simulations of the post-crisi...
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作者：Sun, Qi; Xiaolan, Mindy Z.
作者单位：Shanghai University of Finance & Economics; Shanghai Institute of International Finance & Economics; University of Texas System; University of Texas Austin
摘要：Firms finance intangible investment through employee compensation contracts. In a dynamic model in which intangible capital is embodied in a firm's employees, we analyze the firm's optimal decisions on intangible capital investment, employee compensation contracts, and financial leverage. Employee financing is achieved by delaying wage payments in the form of future claims. We show that intangible capital investment is highly correlated with employee financing but not with debt issuance or reg...
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作者：Whited, Toni M.
作者单位：University of Michigan System; University of Michigan; National Bureau of Economic Research
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作者：Ashcraft, Adam B.; Gooriah, Kunal; Kermani, Amir
作者单位：Bank of America Corporation; University of California System; University of California Berkeley; National Bureau of Economic Research
摘要：This paper documents that complex financial innovations like collateralized debt obligations (CDOs) enabled informed parties in the commercial mortgage-backed securitization pipeline to reduce their skin-in-the-game in a way not observable to other market participants. This reduction in first-loss security retention significantly impacted the probability that more senior tranches ultimately defaulted. We show that this performance is entirely driven by the amount of first-loss sold to (affilia...
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作者：Ma, Zhiming; Stice, Derrald; Williams, Christopher
作者单位：Peking University; Hong Kong University of Science & Technology; University of Michigan System; University of Michigan
摘要：This study examines the effect of bank loan monitoring on public bond contract design. We find that bond yield spreads are lower and that bond issuance amounts are larger when a borrower has recently obtained a private loan, consistent with bond issuers benefiting from the screening and ongoing monitoring of banks. We find that these bonds include more covenants than bonds issued without the cross-monitoring of banks, consistent with bondholders wanting to protect themselves from private lende...
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作者：Masulis, Ronald W.; Zhang, Emma Jincheng
作者单位：University of New South Wales Sydney; Monash University
摘要：We provide new evidence on the value of independent directors by exploiting exogenous events that seriously distract independent directors. Approximately 20% of independent directors are significantly distracted in a typical year. They attend fewer meetings, trade less frequently in the firm's stock, and resign from the board more frequently, indicating declining firm-specific knowledge and a reduced board commitment. Firms with more preoccupied independent directors have declining firm valuat...
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作者：Smolyansky, Michael
作者单位：Federal Reserve System - USA
摘要：Can policies directed at the banking sector in one jurisdiction spill over and affect real economic activity elsewhere? To investigate this question, I exploit changes in tax rates on bank profits across US states. Banks respond by reallocating small business lending to otherwise unaffected states. Moreover, counties in non-tax-changing states that have more exposure to treated banks experience greater changes in lending, which in turn impacts local employment. The findings demonstrate that po...
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作者：Gao, Pengjie; Lee, Chang; Murphy, Dermot
作者单位：University of Notre Dame; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：Policies on financially distressed municipalities differ across US states, with some allowing unconditional access to Chapter 9 bankruptcy (Chapter 9 states) and others having proactive policies to assist distressed municipalities (Proactive states). These differences significantly affect borrowing costs. In Chapter 9 states, local municipal bond yields are higher, more cyclical, and more sensitive to default events than Proactive states. Default events have a contagion effect in Chapter 9 sta...
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作者：Bai, Jennie; Goldstein, Robert S.; Yang, Fan
作者单位：Georgetown University; University of Minnesota System; University of Minnesota Twin Cities; National Bureau of Economic Research; University of Connecticut
摘要：Benchmark models that exogenously specify equity dynamics cannot explain the large spread in prices between put options written on individual banks and options written on the bank index during the financial crisis. However, theory requires that asset dynamics be specified exogenously and that endogenously determined equity dynamics exhibit a leverage effect that increases put prices by fattening the left tail of the distribution. The leverage effect is larger for puts on individual stocks than...
