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作者：Berkowitz, Daniel; Lin, Chen; Ma, Yue
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; University of Hong Kong; City University of Hong Kong
摘要：This paper considers a property law enactment that gave creditors more rights over the assets underlying their secured loans to private firms and gave private firms more protections against the potential expropriation of their assets. We find that this property law enactment led to a significant increase in firm value. We also find that the law's impact on value was more profound for firms with more tangible assets, lower internal cash flows, and stronger growth opportunities, and less profoun...
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作者：Michaelides, Alexander; Milidonis, Andreas; Nishiotis, George P.; Papakyriakou, Panayiotis
作者单位：Imperial College London; University of Cyprus; Centre for Economic Policy Research - UK; Nanyang Technological University
摘要：Rating agencies consult with local government officials several days prior to official announcements of sovereign debt rating changes, making information leakage likely. Using cross-country data from 1988 to 2012, we find evidence of information leakage. In particular, we find statistically and economically significant negative daily abnormal stock index returns prior to downgrade announcements. These effects are more pronounced in countries with lower institutional quality, and they persist d...
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作者：Hanlon, Michelle; Lester, Rebecca; Verdi, Rodrigo
摘要：This paper investigates whether the U.S. repatriation tax for U.S. multinational corporations affects foreign investment. Our results show that the locked-out cash due to repatriation tax costs is associated with a higher likelihood of foreign (but not domestic) acquisitions. We also find a negative association between tax-induced foreign cash holdings and the market reaction to foreign deals. This result suggests that the investment activity of firms with high repatriation tax costs is viewed...
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作者：Acharya, Viral V.; Almeida, Heitor; Baker, Malcolm
作者单位：Centre for Economic Policy Research - UK; National Bureau of Economic Research; University of Illinois System; University of Illinois Urbana-Champaign; Harvard University
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作者：Davidson, Robert; Dey, Aiyesha; Smith, Abbie
作者单位：Georgetown University; University of Minnesota System; University of Minnesota Twin Cities; University of Chicago
摘要：We examine how executives' behavior outside the workplace, as measured by their ownership of luxury goods (low frugality) and prior legal infractions, is related to financial reporting risk. We predict and find that chief executive officers (CEOs) and chief financial officers (CFOs) with a legal record are more likely to perpetrate fraud. In contrast, we do not find a relation between executives' frugality and the propensity to perpetrate fraud. However, as predicted, we find that unfrugal CEO...
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作者：Ai, Hengjie; Li, Rui
作者单位：University of Minnesota System; University of Minnesota Twin Cities; University of Massachusetts System; University of Massachusetts Boston
摘要：We extend the neoclassical investment model (Hayashi, 1982) to allow for limited commitment on compensation contracts. We consider three types of limited commitment: (i) managers cannot commit to compensation contracts that provide lower continuation utility than their outside options; (ii) shareholders cannot commit to negative net present value (NPV) projects; (iii) both the managers and the shareholders cannot commit. We characterize the optimal contract under general convex adjustment cost...
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作者：Kostovetsky, Leonard
作者单位：University of Rochester
摘要：This paper examines how political connections affect risk exposure of financial institutions. Using a geography-based measure. I find that politically connected firms have higher leverage and their stocks have higher volatility and beta. Furthermore, prior to the 2008 financial crisis, politically-connected financial firms had higher leverage and were more likely to increase their leverage during the housing bubble in response to local growth in median housing prices. During the crisis, higher...
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作者：Loutskina, Elena; Strahan, Philip E.
作者单位：University of Virginia; Boston College; University of Pennsylvania; National Bureau of Economic Research
摘要：The Great Recession illustrates the sensitivity of the economy to housing. This paper shows that financial integration, fostered by securitization and nationwide branching, amplified the positive effect of housing price shocks on the economy during the 1994-2006 period. We exploit variation in credit supply subsidies across local markets from government-sponsored enterprises to measure housing price changes unrelated to fundamentals. Using this instrument, we find that house price shocks spur ...
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作者：Akbas, Ferhat; Armstrong, Will J.; Sorescu, Sorin; Subrahmanyam, Avanidhar
作者单位：University of Kansas; Texas Tech University System; Texas Tech University; Texas A&M University System; Texas A&M University College Station; Mays Business School; University of California System; University of California Los Angeles
摘要：We investigate the dual notions that dumb money exacerbates well-known stock return anomalies and smart money attenuates these anomalies. We find that aggregate flows to mutual funds (dumb money) appear to exacerbate cross-sectional mispricing, particularly for growth, accrual, and momentum anomalies. In contrast, hedge fund flows (smart money) appear to attenuate aggregate mispricing. Our results suggest that aggregate flows to mutual funds can have real adverse allocation effects in the stoc...
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作者：Lee, Charles M. C.; Ma, Paul; Wang, Charles C. Y.
作者单位：Stanford University; University of Minnesota System; University of Minnesota Twin Cities; Harvard University
摘要：Applying a co-search algorithm to Internet traffic at the SEC's EDGAR website, we develop a novel method for identifying economically related peer firms and for measuring their relative importance. Our results show that firms appearing in chronologically adjacent searches by the same individual (Search-Based Peers or SBPs) are fundamentally similar on multiple dimensions. In direct tests, SBPs dominate GICS6 industry peers in explaining cross-sectional variations in base firms' out-of-sample: ...
