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作者：Borochin, Paul; Yang, Jie
作者单位：University of Connecticut; Federal Reserve System - USA; Federal Reserve System Board of Governors
摘要：We find that ownership by different types of institutional investors has varying implications for future firm misvaluation and governance characteristics. Dedicated institutional investors decrease future firm misvaluation, in both direction and magnitude, relative to fundamentals. In contrast, transient institutional investors have the opposite effect. Using the U.S. Securities and Exchange Commission (SEC) Regulation FD as an exogenous shock to information dissemination, we find evidence con...
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作者：Barber, Brad M.; Yasuda, Ayako
作者单位：University of California System; University of California Davis
摘要：General partners (GPs) in private equity (PE) report the performance of an existing fund while raising capital for a follow-on fund. Interim performance has large effects on fundraising outcomes. The impact is greatest when backed by exits and for low reputation GPs. Faced with these incentives, GPs time their fundraising to coincide with periods of peak performance through two strategies: (1) exit and fundraise and (2) net asset value (NAV) management. Consistent with the former, performance ...
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作者：Agarwal, Vikas; Ruenzi, Stefan; Weigert, Florian
作者单位：University System of Georgia; Georgia State University; University of Mannheim; University of St Gallen
摘要：We develop a new systematic tail risk measure for equity-oriented hedge funds to examine the impact of tail risk on fund performance and to identify the sources of tail risk. We find that tail risk affects the cross-sectional variation in fund returns and that investments in both tail-sensitive stocks and options drive tail risk. Moreover, leverage and exposure to funding liquidity shocks are important determinants of tail risk. We find evidence of some funds being able to time tail risk expos...
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作者：Liu, Laura Xiaolei; Shu, Haibing; Wei, K. C. John
作者单位：Peking University; Peking University; Shanghai Jiao Tong University; Hong Kong Polytechnic University
摘要：Models of political risk predict that increases in political uncertainty cause stock prices to fall, especially for politically sensitive firms. We use the event of the Bo Xilai political scandal in 2012 in China as an exogenous shock to identify the impact of political uncertainty on asset prices. We document that the Bo scandal caused a significant drop in stock prices, especially for firms that are more politically sensitive. Further analysis shows that the stock price drop is mainly driven...
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作者：Hwang, Byoung-Hyoun; Kim, Hugh Hoikwang
作者单位：Cornell University; Korea University; University of South Carolina System; University of South Carolina Columbia
摘要：We quantify the effects of easy-to-read disclosure documents on firm value by analyzing shareholder reports of closed-end investment companies in which the company's value can be estimated separately from the value of the company's underlying assets. Using a copy-editing software application that counts the pervasiveness of the most important 'writing faults' that make a document harder to read, our analysis provides evidence that issuing financial disclosure documents with low readability cau...
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作者：Acharya, Viral V.; Fleming, Michael J.; Hrung, Warren B.; Sarkar, Asani
作者单位：New York University; Centre for Economic Policy Research - UK; National Bureau of Economic Research; Federal Reserve System - USA; Federal Reserve Bank - New York
摘要：We examine the financial conditions of dealers that participated in two of the Federal Reserve's lender-of-last-resort (LOLR) facilities the Term Securities Lending Facility (TSLF) and the Primary Dealer Credit Facility (PDCF) that provided liquidity against a range of assets during 2008-2009. Dealers with lower equity returns and greater leverage prior to borrowing from the facilities were more likely to participate in the programs, borrow more, and, in the case of the TSLF, at higher bidding...
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作者：Favara, Giovanni; Morellec, Erwan; Schroth, Enrique; Valta, Philip
作者单位：Federal Reserve System - USA; Federal Reserve System Board of Governors; Swiss Federal Institutes of Technology Domain; Ecole Polytechnique Federale de Lausanne; City St Georges, University of London; University of Bern; University of Geneva; University of Geneva; Centre for Economic Policy Research - UK
摘要：We argue that the prospect of an imperfect enforcement of debt contracts in default reduces shareholder-debtholder conflicts and induces leveraged firms to invest more and take on less risk as they approach financial distress. To test these predictions, we use a large panel of firms in 41 countries with heterogeneous debt enforcement characteristics. Consistent with our model, we find that the relation between debt enforcement and firms' investment and risk depends on the firm-specific probabi...
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作者：Mukherjee, Abhiroop; Singh, Manpreet; Zaldokas, Alminas
作者单位：University System of Georgia; Georgia Institute of Technology
摘要：We exploit staggered changes in state-level corporate tax rates to show that an increase in taxes reduces future innovation. A variety of tests, including those based on policy discontinuity at contiguous counties straddling borders of politically similar states, show that local economic conditions do not drive our results. The effect we document is consistent across the innovation spectrum: taxes affect not only patenting and R&D investment but also new product introductions, which we measure...
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作者：Balsmeier, Benjamin; Fleming, Lee; Manso, Gustavo
作者单位：Swiss Federal Institutes of Technology Domain; ETH Zurich; University of California System; University of California Berkeley; University of California System; University of California Berkeley; University of California System; University of California Berkeley
摘要：Much research has suggested that independent boards of directors are more effective in reducing agency costs and improving firm governance. How they influence innovation is less clear. Relying on regulatory changes, we show that firms that transition to independent boards focus on more crowded and familiar areas of technology. They patent and claim more and receive more total future citations to their patents. However, the citation increase comes mainly from incremental patents in the middle o...
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作者：Billett, Matthew T.; Garfinkel, Jon A.; Yu, Miaomiao
作者单位：Indiana University System; IU Kelley School of Business; Indiana University Bloomington; University of Iowa; University of Saskatchewan
摘要：We explore how asymmetric information in financial markets affects outcomes in product markets. Difference-in-difference tests around brokerage house merger/closure events (which increase asymmetric information through reductions in analyst coverage) indicate worse industry-adjusted sales growth for shocked firms than for their peers. Our results are consistent with Bolton and Scharfstein's (1990) tradeoff between investor agency concerns and predation risk. Further support is found in stronge...
