-
作者：Laeven, Luc; Levine, Ross
作者单位：International Monetary Fund; Centre for Economic Policy Research - UK; European Corporate Governance Institute; Tilburg University; Brown University; National Bureau of Economic Research
摘要：This paper conducts the first empirical assessment of theories concerning risk taking by banks, their ownership structures, and national bank regulations. We focus on conflicts between bank managers and owners over risk, and we show that bank risk taking varies positively with the comparative power of shareholders within the corporate governance structure of each bank. Moreover, we show that the relation between bank risk and capital regulations, deposit insurance policies, and restrictions on...
-
作者：Hwang, Byoung-Hyoun; Kim, Seoyoung
作者单位：Purdue University System; Purdue University
摘要：Currently. a director is classified as independent if he or she has neither financial nor familial ties to the CEO or to the firm. We add another dimension: social ties. Using a unique data set, we find that 87% of boards are conventionally independent but that only 62% are conventionally and socially independent. Furthermore, firms whose boards are conventionally and socially independent award a significantly lower level of compensation. exhibit stronger pay-performance sensitivity, and exhib...
-
作者：Adam, Tim
作者单位：Humboldt University of Berlin; National University of Singapore
摘要：This paper analyzes why gold mining firms use options instead of linear strategies to hedge their gold price risk. Consistent with financial constraints based theories, the largest and least financially constrained firms are the most likely to hedge with insurance strategies (Put options), while more constrained firms finance the purchase of puts by selling calls (collars). The most financially constrained firms use strategies that involve selling calls. Firms with large investment programs ar...
-
作者：Chay, J. B.; Suh, Jungwon
作者单位：Ewha Womans University; Sungkyunkwan University (SKKU)
摘要：The importance of cash-flow uncertainty in payout policy has received little attention in empirical studies, while survey studies such as [Lintner, J., 1956. Distribution of incomes of operations among dividends, retained earnings, and taxes. American Economic Review 46, 97-113.] and [Brav. A., Graham, J., Harvey C., Michaely, R., 2005. Payout policy in the 21st century. journal of Financial Economics 77, 483-527.] indicate its importance. With worldwide firm-level data, we present evidence th...
-
作者：Goettler, Ronald L.; Parlour, Christine A.; Rajan, Uday
作者单位：University of Chicago; University of California System; University of California Berkeley; University of Michigan System; University of Michigan
摘要：We consider a dynamic limit order market in which traders optimally choose whether to acquire information about the asset and the type of order to submit. We numerically solve for the equilibrium and demonstrate that the market is a volatility multiplier: prices are more volatile than the fundamental value of the asset. This effect increases when the fundamental value has high volatility and with asymmetric information across traders. Changes in the microstructure noise are negatively correlat...
-
作者：Nini, Greg; Smith, David C.; Sufi, Amir
作者单位：University of Chicago; University of Pennsylvania; University of Virginia
摘要：We present novel empirical evidence that conflicts of interest between creditors and their borrowers have a significant impact on firm investment policy. We examine a large sample of private credit agreements between banks and public firms and find that 32% of the agreements contain an explicit restriction on the firm's capital expenditures. Creditors are more likely to impose a capital expenditure restriction as a borrower's credit quality deteriorates, and the use of a restriction appears at...
-
作者：Anderson, Ronald C.; Duru, Augustine; Reeb, David M.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; American University
摘要：We argue that information about firm activities can vary substantially in the presence of founder or heir ownership, thereby influencing the risks borne by minority investors. We explore two hypotheses with regard to these controlling shareholders and corporate transparency, focusing on their role as monitor in-place and their potential to exploit firm opacity to accrue private benefits of control. To test these notions, we create an opacity index that ranks the relative transparency of the tw...
-
作者：Kedia, Simi; Rajgopal, Shiva
作者单位：University of Washington; University of Washington Seattle; Rutgers University System; Rutgers University Newark; Rutgers University New Brunswick
摘要：We find that fixed effects related to the location of firms' headquarters explain variation in broad based option grants after controlling for industry effects and firm characteristics traditionally known to affect option granting. Location matters because of local labor market conditions and social interaction with neighboring firms. Broad based option grants are higher: (i) when a firm's stock prices co-move more with stock prices of other firms located in that Metropolitan Statistical Area ...
-
作者：Albuquerque, Rui; Bauer, Gregory H.; Schneider, Martin
作者单位：Centre for Economic Policy Research - UK; Boston University; Bank of Canada; Stanford University; National Bureau of Economic Research
摘要：This paper studies international equity markets when some investors have private information that is valuable for trading in many countries simultaneously. We use a dynamic model of equity trading to show that global private information helps explain US investors' trading behavior and performance. In particular, the model predicts global return chasing (positive co-movement of US investors' net purchases with returns in many countries) which we show to be present in the data. Return chasing in...
-
作者：Hilary, Gilles; Hui, Kai Wai
作者单位：Hong Kong University of Science & Technology; Hautes Etudes Commerciales (HEC) Paris
摘要：We examine how corporate culture influences firm behavior. Prior research suggests a link between individual religiosity and risk a version. We find that this relationship also influences organizational behavior. Firms located in counties with higher levels of religiosity display lower degrees of risk exposure, as measured by variances in equity returns or returns on assets. They exhibit a lower investment rate and less growth, but generate a more positive market reaction, when they announce n...
