-
作者：Fauver, Larry; Hung, Mingyi; Li, Xi; Taboada, Alvaro G.
作者单位：University of Tennessee System; University of Tennessee Knoxville; Hong Kong University of Science & Technology; Mississippi State University
摘要：We examine the impact of corporate board reforms on firm value in 41 countries. Using a difference-in-differences design, we find that board reforms increase firm value. Reforms involving board and audit committee independence, but not reforms involving separation of chairman and chief executive officer positions, drive the valuation increases. In addition, while comply-or-explain reforms result in a greater increase in firm value than rule-based reforms, the effects of reforms are similar acr...
-
作者：Bekaert, Geert; Hoyem, Kenton; Hu, Wei-Yin; Ravina, Enrichetta
作者单位：Columbia University; National Bureau of Economic Research
摘要：Drawing on a novel database of the 401(k) plans of 296 firms, we examine the international equity allocations of 3.8 million individuals over the 2005-2011 period. We find enormous cross-individual variation, ranging from zero to more than 75%, and strong cohort effects, with younger cohorts investing more internationally than older ones and each cohort investing more internationally over time. Access to financial advice, lower fees, and more international fund choices are associated with high...
-
作者：van Binsbergen, Jules H.; Koijen, Ralph S. J.
作者单位：University of Pennsylvania; National Bureau of Economic Research; New York University; Center for Economic & Policy Research (CEPR)
摘要：We summarize and extend the new literature on the term structure of equity. Short-term equity claims, or dividend strips, have higher average returns and Sharpe ratios than the aggregate stock market. The returns on short-term dividend claims are risky as measured by volatility, but safe as measured by market beta. These facts are hard to reconcile with traditional macro-finance models and we provide an overview of new models that can reproduce some of these facts. We relate our evidence on di...
-
作者：Beneish, Messod D.; Marshall, Cassandra D.; Yang, Jun
作者单位：Indiana University System; Indiana University Bloomington; IU Kelley School of Business; University of Richmond
摘要：We propose a framework that advances our understanding of Chief Executive Officer (CEO) retention decisions in misreporting firms. Consistent with economic intuition, outside directors are more likely to fire (retain) CEOs when retention (replacement) costs are high relative to replacement (retention) costs. When the decision is ambiguous because neither cost dominates, outside directors are more likely to retain the CEO when they both benefit from selling stock in the misreporting period. We ...
-
作者：Kaniel, Ron; Parham, Robert
作者单位：University of Rochester; Centre for Economic Policy Research - UK
摘要：We exploit a novel natural experiment to establish a causal relation between media attention and consumer investment behavior, independent of the conveyed information. Our findings indicate a 31% local average increase in quarterly capital flows into mutual funds mentioned in a prominent Wall Street Journal Category Kings ranking list, compared to those funds which just missed making the list. This flow increase is about seven times larger than extra flows due to the well-documented performanc...
-
作者：Bali, Turan G.; Brown, Stephen J.; Tang, Yi
作者单位：Georgetown University; Monash University; New York University; Fordham University
摘要：We investigate the role of economic uncertainty in the cross-sectional pricing of individual stocks and equity portfolios. We estimate stock exposure to an economic uncertainty index and show that stocks in the lowest uncertainty beta decile generate 6% more annualized risk-adjusted return compared to stocks in the highest uncertainty beta decile. We find that the uncertainty premium is driven by the outperformance (underperformance) by stocks with negative (positive) uncertainty beta. Our res...
-
作者：Amiram, Dan; Beaver, William H.; Landsman, Wayne R.; Zhao, Jianxin
作者单位：Columbia University; Stanford University; University of North Carolina; University of North Carolina Chapel Hill; Emory University
摘要：This study shows that initiation of credit default swap (CDS) trading for an entity's debt increases the share of loans retained by loan syndicate lead arrangers and increases loan spread. These findings are consistent with CDS initiation reducing the effectiveness of a lead arranger's stake in the loan to serve as a mechanism to address the adverse selection and moral hazard problems in the loan syndicate. Additional findings corroborate this interpretation by revealing a moderating effect fo...
-
作者：Boyson, Nicole M.; Gantchev, Nickolay; Shivdasani, Anil
作者单位：Northeastern University; University of North Carolina; University of North Carolina Chapel Hill
摘要：Shareholder value creation from hedge fund activism occurs primarily by influencing takeover outcomes for targeted firms. Controlling for selection decisions, activist interventions substantially increase the probability of a takeover offer. Third-party bids for targets have higher returns, premia, and completion rates, but these patterns reverse when the activist is the bidder. Failed bids for activism targets lead to improvements in operating performance, financial policy, and positive long-...
-
作者：Garlappi, Lorenzo; Giammarino, Ron; Lazrak, Ali
作者单位：University of British Columbia
摘要：We study a dynamic corporate investment problem where decisions have to be made collectively by a group of agents holding heterogeneous beliefs and adhering to a utilitarian governance mechanism in which each agent has a given influence in the decision. In this setting we show that: (i)group decisions are typically dynamically inconsistent, (ii)dynamic inconsistency leads to inefficient underinvestment, and (iii)the ability to trade securities among insiders or with outsiders may restore effic...
-
作者：Gu, Tiantian
作者单位：Northeastern University
摘要：U.S. multinational firms hold significantly more cash than domestic firms. I study this cash differential using a dynamic model featuring corporate physical and intangible investment, cross-border decisions, and financial policies. I find that the cash differential diminishes by 42% if repatriation costs are set to zero. Hence, costly repatriation induces cash accumulation offshore. Further, firms that invest overseas have different ex ante cash policies from firms that do not. I examine this ...
