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作者：Gao, Haoyu; Ru, Hong; Tang, Dragon Yongjun
作者单位：University of Hong Kong; Renmin University of China; Nanyang Technological University
摘要：We provide direct evidence that governments selectively default on debt when they can identify creditors. Analyzing a comprehensive data set of subnational debt, we show that Chinese local governments choose to default on banks with weaker political power. A re-duction in a bank's political power relative to other banks increases the likelihood of se-lective default by local governments. Such default selections are driven by banks' influence over politician promotion. When local politicians ar...
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作者：O'Hara, Maureen; Zhou, Xing Alex
作者单位：Cornell University; Federal Reserve System - USA; Federal Reserve System Board of Governors
摘要：Technology transformed the trading of financial assets but has been slower to come to corporate bond trading. Combining proprietary data from MarketAxess with regulatory TRACE data, we investigate how electronic request for quote (RFQ) trading affects bond dealers and trading more generally. We demonstrate that electronic trading remains fairly small and segmented, but has wide-ranging effects on transaction costs and execution quality in both electronic and voice trading, and the interdealer ...
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作者：Faccio, Mara; Morck, Randall; Yavuz, M. Deniz
作者单位：Purdue University System; Purdue University; National University of Singapore; European Corporate Governance Institute; National Bureau of Economic Research; University of Alberta
摘要：Firm-specific information has a damped effect on business group-affiliated firms' stock prices. Such firms' idiosyncratic stock returns are less responsive to idiosyncratic commodity price shocks than are the idiosyncratic returns of otherwise similar unaffiliated firms in the same country and commodity-sensitive industry. Using global commodity shocks means we assess responses to common idiosyncratic shocks of the same magnitude, frequency, and observability. Further identification follows fr...
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作者：Honigsberg, Colleen; Jacob, Matthew
作者单位：Stanford University; Harvard University
摘要：We examine a controversial process, known as expungement, which allows brokers to remove evidence of financial misconduct from public records. From 2007 to 2016, we identify 6660 expungement requests, suggesting that brokers attempt to expunge 12% of the allegations of misconduct reported by customers and firms. When these requests are adjudicated on the merits, arbitrators approve expungement 84% of the time. We show that expungements significantly predict future misconduct; brokers with prio...
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作者：Gustafson, Matthew T.; Ivanov, Ivan T.; Meisenzahl, Ralf R.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Federal Reserve System - USA; Federal Reserve System Board of Governors; Federal Reserve System - USA; Federal Reserve Bank - Chicago
摘要：We directly measure banks' monitoring of syndicated loans. Banks typically demand borrower information on at least a monthly basis. About 20% of loans involve active monitoring (i.e., site visits or third-party appraisals). Monitoring increases with the lead bank's incentives and the value of information and is negatively associated with loan spreads and maturity. The monitoring captured by our measures can either complement or substitute for covenant-based monitoring, depending on whether the...
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作者：Gronborg, Niels S.; Lunde, Asger; Timmermann, Allan; Wermers, Russ
作者单位：Aarhus University; Danish Finance Institute; University of California System; University of California San Diego; Aarhus University; CREATES; University System of Maryland; University of Maryland College Park
摘要：We present a new approach to selecting actively managed mutual funds that uses both portfolio holdings and fund return information to eliminate funds with predicted inferior performance through a sequence of pairwise fund comparisons. Our methodology determines both the number of skilled funds and their identities, and locates funds with substantially higher risk-adjusted returns than those identified by conventional alpha-ranking methods. We find strong evidence of time-series variation in bo...
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作者：Johnson, Travis L.; Swem, Nathan
作者单位：University of Texas System; University of Texas Austin; Federal Reserve System - USA; Federal Reserve System Board of Governors
摘要：We measure the impact of reputation for proxy fighting on investor activism by estimating a dynamic model in which activists engage a sequence of target firms. Our estimation produces an evolving reputation measure for each activist and quantifies its impact on campaign frequency and outcomes. We find that high reputation activists initiate 3.5 times as many campaigns and extract 85% more settlements from targets, and that reputationbuilding incentives explain 20% of campaign initiations and 1...
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作者：Barrios, John M.; Hochberg, Yael, V
作者单位：Washington University (WUSTL); National Bureau of Economic Research; Rice University
摘要：Politics may color interpretations of facts, and thus perceptions of risk. We find that a higher share of Trump voters in a county is associated with lower perceptions of risk during the COVID-19 pandemic. Controlling for COVID-19 case counts and deaths, as Trump's vote share rises in the local area, individuals search less for information on the virus and its potential economic impacts, and engage in fewer visits to non-essential businesses. Our results suggest that politics and the media may...
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作者：Bennedsen, Morten; Mehrotra, Vikas; Shim, Jungwook; Wiwattanakantang, Yupana
作者单位：Centre for Economic Policy Research - UK; INSEAD Business School; University of Copenhagen; University of Alberta; Kyoto Sangyo University; National University of Singapore
摘要：Dynastic-controlled firms are led by founding-family CEOs while the family owns an in-significant share of equity (defined as less than 5%). They represent 7.4% of listed firms in post-war Japan, include well-known firms such as Casio, Suzuki, and Toyota, and are often grouped with widely held firms in the literature. These firms differ in key performance measures from both traditional family firms and non-family firms, and evolve from the former as equity-financed growth dilutes family owners...
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作者：Pedersen, Lasse Heje; Fitzgibbons, Shaun; Pomorski, Lukasz
作者单位：Copenhagen Business School; Centre for Economic Policy Research - UK
摘要：We propose a theory in which each stock's environmental, social, and governance (ESG) score plays two roles: (1) providing information about firm fundamentals and (2) affecting investor preferences. The solution to the investor's portfolio problem is characterized by an ESG-efficient frontier, showing the highest attainable Sharpe ratio for each ESG level. The corresponding portfolios satisfy four-fund separation. Equilibrium asset prices are determined by an ESG-adjusted capital asset pricing...
