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作者：Landier, Augustin; Lovo, Stefano
作者单位：Hautes Etudes Commerciales (HEC) Paris
摘要：Can a socially responsible fund (SRF) improve social welfare while maximizing assetsunder management? We consider a two-sector model integrating financial intermediation,emissions' negative externalities, and investors' social preferences with regard to valuealignment and impact. In scenarios with a high proportion of value-aligned investors,the SRF invests in clean sectors and compels recipients companies to use low-emissionsuppliers from the polluting sector, which appeals to both investor t...
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作者：Davydiuk, Tetiana; Marchuk, Tatyana; Rosen, Samuel
作者单位：Johns Hopkins University; BI Norwegian Business School; Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University
摘要：Using the exclusion of business development companies (BDCs) from stock indexes, this paper studies the effectiveness of market discipline in the direct lending space. Amid share sell-offs by institutional investors, a drop in BDCs' valuations limits their ability to raise new equity capital. Following this funding shock, BDCs do not adjust their capital structure. At the same time, they are reducing the risk exposure of their portfolios. We document a greater reduction in risk for BDCs subjec...
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作者：Shapiro, Joel; Zeng, Jing
作者单位：University of Oxford; University of Bonn
摘要：Stress tests convey information about the strictness of future tests, creating incentives for banks to alter their future lending behavior. Regulators recognize and use this influence: they may conduct softer stress tests to encourage lending or tougher stress tests to reduce risk-taking. This information management can lead to inefficiencies when (a) the test loses credibility or (b) the test becomes self-fulfilling. In addition, banks may distort their lending behavior in anticipation of the...
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作者：Gao, Meng; Huang, Jiekun
作者单位：University of Connecticut; University of Illinois System; University of Illinois Urbana-Champaign
摘要：Information production by shareholders is essential for proxy voting to produce efficient outcomes. We propose a stock return-based measure to capture informed voting. Our measure, the vote alpha, quantifies the extent to which a shareholder votes in the direction that the market perceives as value increasing. Using data on mutual funds' proxy voting records, we find that the vote alpha exhibits persistence. Our main result shows that the voting pattern of high vote alpha funds positively pred...
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作者：Matta, Rafael; Perotti, Enrico
作者单位：SKEMA Business School; Universite Cote d'Azur; University of Amsterdam; Centre for Economic Policy Research - UK
摘要：The classic view assumes banks prioritize immediate repayment by selling assets until default. We endogenize run frequency and study how general settlement rules trade off liquidity provision net of fire sale losses against induced run incentives. Panic runs are eliminated when all illiquid assets are sold under orderly resolution, but liquidity provision in a run is minimal. When suspension after some fire sales is followed by immediate liquidation, run frequency falls then rises in suspensio...
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作者：Dai, Liang; Luo, Dan; Yang, Ming
作者单位：The Chinese University of Hong Kong, Shenzhen; The Chinese University of Hong Kong, Shenzhen; Chinese University of Hong Kong; University of London; University College London; University of London; University College London
摘要：We find that disclosing bank-specific information reallocates systemic risk, but whether it mitigates systemic bank runs depends on the nature of information disclosed. Disclosure reveals banks' resilience to adverse shocks and shifts systemic risk from weak to strong banks. Yet, only disclosure of banks' exposure to systemic risk can mitigate systemic bank runs because it shifts systemic risk from more vulnerable banks to those less vulnerable. Disclosure of banks' idiosyncratic shortfalls of...
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作者：Mullally, Kevin; Rossi, Andrea
作者单位：State University System of Florida; University of Central Florida; University of Arizona
摘要：We analyze changes to mutual funds' self-declared benchmarks using hand-collected data from funds' prospectuses. Under existing rules, funds can freely change their benchmark indexes and, implicitly, the historical returns to which they compare their past performance. Funds exploit this loophole by adding (dropping) indexes with lower (higher) past returns, thereby materially improving the appearance of their benchmark-adjusted returns. High-fee funds, broker-sold funds, and funds experiencing...
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作者：Liu, Jessica; Liu, Weiling
作者单位：Northeastern University
摘要：Political frictions significantly affect both pricing and supply in the long-term care insurance (LTCI) market. Comparing the same insurer's requests submitted for the same policy at the same time to different state regulators, we find that they are 13% more likely to be approved and receive 4% more of the requested amount after an election year. Over time, regulatory pushback on premium increase requests leads to persistently lower cash reserves and increases the probability of company dropou...
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作者：Glode, Vincent; Ordonez, Guillermo
作者单位：University of Pennsylvania
摘要：We model firms' allocation of resources across surplus-creating (ie, productive) and surplus-appropriating (ie, rent-seeking) activities. Our model predicts that industry-wide technological advancements, such as recent progress in data collection and processing, induce a disproportionate and socially inefficient reallocation of resources toward surplus-appropriating activities. As technology improves, firms rely more on appropriation to obtain their profits, thereby endogenously reducing the i...
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作者：Tong, Joy Tianjiao
作者单位：Western University (University of Western Ontario)
摘要：Health care costs for U.S. employers have tripled over the past 20 years. Using firm-specific health expense data, I show that firms negatively adjust capital expenditures and R&D expenses in response to increases in health care costs. The effects are more pronounced for firms that are financially constrained, employ more high-skilled workers, and have less bargaining power relative to insurers. Furthermore, policy uncertainty surrounding health care costs is substantial and discourages capita...
