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作者：Belgibayeva, Adiya; Bono, Teresa; Bracke, Philippe; Clara, Nuno; Cocco, Joao F.; Majer, Tommaso
作者单位：Bank of England; Duke University; University of London; London Business School; Centre for Economic Policy Research - UK
摘要：We combine administrative data with a life cycle structural model that exploits the unique features of the U.K. mortgage market to analyze the sources of inaction and to estimate borrowers' nonpecuniary remortgaging costs. The utility costs needed to generate a given level of inaction depend on monetary gains from remortgaging and on the importance of those monetary gains for agents, which in turn depend on the (endogenously determined) marginal utility of consumption. The model results reveal...
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作者：Chang, Jeffery (jinfan); Wang, Yuheng; Xiong, Wei
作者单位：The Chinese University of Hong Kong, Shenzhen; Central University of Finance & Economics; Princeton University
摘要：During the COVID-19 pandemic (2020-2022), Chinese cities witnessed a paradox: residential land and new house prices surged while transaction volumes plummeted. We attribute this to local governments' active price management through supply controls, land acquisitions by local government financing vehicles (LGFVs), and limits on new home sales permits. Cities more dependent on land sales and land-backed debt before the pandemic experienced greater price increases and price-volume divergence, wit...
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作者：Brauning, Falk; Ivashina, Victoria; Ozdagli, Ali
作者单位：Federal Reserve System - USA; Federal Reserve Bank - Boston; Harvard University; National Bureau of Economic Research; Center for Economic & Policy Research (CEPR); Federal Reserve System - USA; Federal Reserve Bank - Dallas
摘要：High-yield debt, including leveraged loans, typically features incurrence or '' cov-lite'' financial covenants. Unlike traditional maintenance covenants, incurrence covenants preserve equity control rights but impose specific contractual restrictions on the borrower once certain financial thresholds are crossed. Contrary to the prevailing view that incurrence covenants have limited practical impact, we document a substantial decline in investment when these covenants are triggered. During econ...
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作者：Hendershott, Terrence; Khan, Saad Ali; Riordan, Ryan
作者单位：University of California System; University of California Berkeley; Universite de Montreal; HEC Montreal; University of Munich; Queens University - Canada
摘要：Wholesale market makers pay for retail options orders that must be executed on exchanges. Payment for order flow (PFOF) wholesalers compete via price improvement in exchange auctions. To attract retail orders, wholesalers run more auctions when their recent price improvement has been lower. However, auction price improvement lowers market maker revenues. Wholesalers earn revenues to pay PFOF in nonauction trades where their designated market maker status increases their execution priority. Whi...
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作者：Celerier, Claire; Tak, Purnoor
作者单位：University of Toronto; University of London; London Business School
摘要：We study how bank advertising practices contribute to racial disparities in financial markets by steering minorities toward inferior products. We exploit a regulatory change that incentivizes deposit collection at the Freedman's Savings Bank, the first institution to collect deposits from African Americans post-Emancipation, by facilitating misuse of depositor funds. After deregulation, advertising volume rises, particularly in African American newspapers, leading to increased deposits from Bl...
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作者：Cole, Shawn; Jeng, Leslie; Lerner, Josh; Rigol, Natalia; Roth, Benjamin N.
作者单位：Harvard University; National Bureau of Economic Research
摘要：Do impact investors seek impact, or merely impact wash? We provide systematic evidence on the nonfinancial determinants of impact investing. Impact investors focus on firms aligned with the priorities of the federal government and disproportionately invest in economically disadvantaged regions. While we find high levels of coinvestment between impact and traditional investors, we also show that impact investors influence the strategies of their traditional coinvestors, are more likely to fund ...
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作者：Fricke, Daniel; Jank, Stephan; Wilke, Hannes
作者单位：Deutsche Bundesbank
摘要：Using a unique data set on the ownership composition of euro area equity funds, we find substantial differences in the flow-performance sensitivity across mutual fund clienteles. Households, followed by insurers, display the weakest sensitivity, whereas investment funds-as investors in mutual funds-exhibit the strongest sensitivity. Crucially, these behavioral differences hold within the same fund-quarter, ruling out heterogeneity across funds as a potential driver. We relate these clientele e...
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作者：Sharma, Varun
作者单位：Pennsylvania State System of Higher Education (PASSHE); Indiana University of Pennsylvania
摘要：I investigate how index membership affects firms' product-market strategy. After plausibly exogenous index inclusion, firms gain market share by reducing product prices, giving better trade credit, and increasing sales and marketing expenses. Firms reduce prices for products with low market share and higher switching costs and habits. This comes at the cost of lower profitability, which increases in subsequent periods. Further analysis suggests that managerial learning about an improved fundin...
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作者：Jensen, Theis Ingerslev; Kelly, Bryan; Malamud, Semyon; Pedersen, Lasse Heje
作者单位：Yale University; Yale University; National Bureau of Economic Research; Swiss Finance Institute (SFI); Swiss Federal Institutes of Technology Domain; Ecole Polytechnique Federale de Lausanne; Centre for Economic Policy Research - UK; Copenhagen Business School
摘要：We propose that investment strategies should be evaluated based on their net-of-trading-cost return for each level of risk, which we term the implementable efficient frontier. While numerous studies use machine learning return forecasts to generate portfolios, their agnosticism toward trading costs leads to excessive reliance on fleeting small-scale characteristics, resulting in poor net returns. We develop a framework that produces a superior frontier by integrating trading-cost-aware portfol...
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作者：van Binsbergen, Jules; Cocco, Joao F.; Grotteria, Marco; Naaraayanan, S. Lakshmi
作者单位：University of Pennsylvania; Centre for Economic Policy Research - UK; National Bureau of Economic Research; University of London; London Business School
摘要：We quantify the impact of perceived cancer risk on housing values using widely advertised national reclassifications of chemical carcinogenicity in the United States. Combining these information events with an empirical design that compares changes in house values closer to affected toxic plants against those farther away isolates the effect of cancer risk news from other local factors. Focusing on plants previously emitting reclassified carcinogenic chemicals, we estimate a 1-2% decline in ho...
