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作者：Kwan, Amy; Masulis, Ronald; McInish, Thomas H.
作者单位：University of Sydney; University of New South Wales Sydney; University of Memphis
摘要：We investigate competition between traditional stock exchanges and new dark trading venues using an important difference in regulatory treatment. Securities and Exchange Commission required minimum pricing increments constrain some stock spreads, causing large limit order queues. Dark pools allow some traders to bypass existing limit order queues with minimal price improvement. Using a regression discontinuity design, we find that spread constraints significantly weaken exchanges' competitiven...
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作者：Tewari, Manish; Byrd, Anthony; Ramanlal, Pradipkumar
作者单位：State University of New York (SUNY) System; State University of New York (SUNY) Brockport; State University System of Florida; University of Central Florida
摘要：We identify the call premium in nonconvertible callable bonds as an effective contracting provision to address agency conflict due to reinvestment risk and credit rating improvements. We analyze 4,495 bonds issued between 1980 and 2012. When interest rates are high, a majority of investment-grade issues and almost the entire subset with long maturities (> 20 years) include a call premium. When interest rates are low, virtually all investment-grade issues with long and short maturities are call...
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作者：DeBacker, Jason; Heim, Bradley T.; Anh Tran
作者单位：United States Department of the Treasury; Indiana University System; Indiana University Bloomington
摘要：We study how cultural norms and enforcement policies influence illicit corporate activities. Using confidential Internal Revenue Service (IRS) audit data, we show that corporations with owners from countries with higher corruption norms evade more tax in the U.S. This effect is strong for small corporations and decreases as the size of the corporation increases. In the mid-2000s, the United States implemented several enforcement measures to increase tax compliance. We find that these enforceme...
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作者：DeAngelo, Harry; Stulz, Rene M.
作者单位：University of Southern California; University System of Ohio; Ohio State University
摘要：Liquidity production is a central function of banks. High leverage is optimal for banks in a model that has just enough frictions for banks to have a meaningful role in liquid-claim production. The model has a market premium for (socially valuable) safe/liquid debt, but no taxes or other traditional motives to lever up. Because only safe debt commands a liquidity premium, banks with risky assets use risk management to maximize their capacity to include such debt in the capital structure. The m...
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作者：Dimitrov, Valentin; Palia, Darius; Tang, Leo
作者单位：Rutgers University System; Rutgers University New Brunswick; Rutgers University Newark
摘要：We analyze the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) on corporate bond ratings issued by credit rating agencies (CRAs). We find no evidence that Dodd-Frank disciplines CRAs to provide more accurate and informative credit ratings. Instead, following Dodd-Frank, CRAs issue lower ratings, give more false warnings, and issue downgrades that are less informative. These results are consistent with the reputation model of Morris (2001), and suggest that ...
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作者：Eun, Cheol S.; Wang, Lingling; Xiao, Steven C.
作者单位：University System of Georgia; Georgia Institute of Technology; Tulane University; Rutgers University System; Rutgers University New Brunswick; Rutgers University Newark; Rutgers University System; Rutgers University New Brunswick
摘要：Consistent with predictions from the psychology literature, we find that stock prices co-move more (less) in culturally tight (loose) and collectivistic (individualistic) countries. Culture influences stock price synchronicity by affecting correlations in investors' trading activities and a country's information environment. Both market-wide and firm-specific variations are lower in tighter cultures. Individualism is mostly associated with higher firm-specific variations. Trade and financial o...
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作者：Floyd, Eric; Li, Nan; Skinner, Douglas J.
作者单位：Rice University; University of Toronto; University of Chicago
摘要：We compare the payout policies of US industrials and banks over the past 30 years to better understand dividends, especially for banks. For industrials, dividends grow strongly after 2002, when the declining propensity to pay reverses. Banks have a higher and more stable propensity to pay dividends and resist cutting dividends as the 2007-2008 financial crisis begins. Before the crisis, increases in repurchases push payouts to historic levels. These findings are broadly consistent with the ide...
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作者：Berk, Jonathan B.; van Binsbergen, Jules H.
作者单位：Stanford University; University of Pennsylvania; Tilburg University; National Bureau of Economic Research
摘要：Using the value that a mutual fund extracts from capital markets as the measure of skill, we find that the average mutual fund has used this skill to generate about $3.2 million per year. Large cross-sectional differences in skill persist for as long as ten years. Investors recognize this skill and reward it by investing more capital with better funds. Better funds earn higher aggregate fees, and a strong positive correlation exists between current compensation and future performance. The cros...
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作者：Fich, Eliezer M.; Harford, Jarrad; Tran, Anh L.
作者单位：Drexel University; University of Washington; University of Washington Seattle; City St Georges, University of London
摘要：Studies of institutional monitoring focus on the fraction of the firm held by institutions. We focus on the fraction of the institution's portfolio represented by the firm. In the context of acquisitions, we hypothesize that institutional monitoring will be greatest when the target firm represents a significant allocation of funds in the institution's portfolio. We show that this measure is important in reconciling mixed findings for total institutional ownership in the prior literature. The r...
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作者：Brown, Jeffrey R.; Ivkovic, Zoran; Weisbenner, Scott
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; Michigan State University; Michigan State University's Broad College of Business; National Bureau of Economic Research
摘要：We provide new evidence on the empirical determinants of intertemporal financial decisions. We use an exogenously imposed choice affecting nearly all Croatian retirees to study characteristics associated with choosing a larger, deferred stream of payments over a smaller, more immediate payment. Individuals are more willing to defer if they have higher incomes and are not liquidity constrained, have a longer time horizon because of better health and longer life expectancy, and have stronger beq...
