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作者：Dasgupta, Sudipto; Huynh, Thanh D.; Xia, Ying
作者单位：Chinese University of Hong Kong; Monash University; Monash University
摘要：We find that firms reduce toxic emissions at their local plants following EPA enforcement actions against nearby plants operated by peer firms that compete in the same product market. These reductions are more pronounced for plants located near socially responsible mutual funds (SRMFs) that hold these plants' parent firms' shares. Close proximity to SRMFs is associated with real investment in abatement measures to mitigate emissions. While plants increase emissions again in the long run, such ...
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作者：Bacchetta, Philippe; Tieche, Simon; van Wincoop, Eric
作者单位：University of Lausanne; Swiss Federal Institutes of Technology Domain; Ecole Polytechnique Federale de Lausanne; University of Virginia; National Bureau of Economic Research; National Bureau of Economic Research
摘要：Using data on international equity portfolio allocations by U.S. mutual funds, we estimate a portfolio expression derived from a standard mean-variance portfolio model extended with portfolio frictions. The optimal portfolio depends on the previous month and the buy-and-hold portfolio shares, and a present discounted value of expected excess returns. We estimate expected return differentials and use them in the portfolio regressions. The estimates imply significant portfolio frictions and a mo...
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作者：Tzur-Ilan, Nitzan
作者单位：Federal Reserve System - USA; Federal Reserve Bank - Dallas
摘要：This study provides novel evidence regarding the effects of loan-to-value (LTV) limits on housing choices. Using a detailed loan-level dataset, I exploit the introduction of LTV limits in Israel. I find that the LTV limits led borrowers to choose housing units that were more affordable, farther from the central business district, and in lower socioeconomic neighborhoods. Additionally, these LTV limits increase interest rates and decrease loan amounts. The findings of this study indicate that m...
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作者：Gahng, Minmo; Ritter, Jay R.; Zhang, Donghang
作者单位：Cornell University; State University System of Florida; University of Florida; University of South Carolina System; University of South Carolina Columbia
摘要：Going public by merging with a Special Purpose Acquisition Company (SPAC) is much more expensive than conducting a traditional IPO. We rationalize why some companies merge with a SPAC by listing the potential benefits. We analyze the agency problems that certain SPAC features address. SPAC IPO investors and deal sponsors have earned remarkably high annualized average returns, although we warn that recent deals are likely to disappoint. Public investors in the merged companies have earned very ...
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作者：Sen, Ishita
作者单位：Harvard University
摘要：Variable annuities, the largest liability of U.S. life insurers, are investment products containing long-dated minimum return guarantees. I show that guarantees with similar economic risks are treated differently by regulation and these differences impact insurers' hedging behavior. When the regulatory regime recognizes certain risks, insurers start to hedge these risks in a substantial way. For some guarantees, this involves hedging both interest rate and equity market risks. However, for oth...
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作者：Griffin, John M.; Nickerson, Jordan
作者单位：University of Texas System; University of Texas Austin; University of Washington; University of Washington Seattle
摘要：Between March and August 2020, S & P and Moody's downgraded approximately 25$\%$ of collateral feeding into CLOs and only 2$\%$ of tranche values, with rating actions concentrating in junior tranches. Both S & P and Moody's modeling indicate that the impacts should have been considerably larger, especially for higher-rated tranches. Neither changes in correlation nor the accumulation of pre-COVID-19 protective cushions can explain the downgrade asymmetry on upper tranches. Instead, CLO manager...
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作者：Gerken, William C.; Painter, Marcus O.
作者单位：University of Kentucky; Saint Louis University
摘要：Using satellite imagery of retail firms' parking lots to measure time-varying local firm-specific performance, we document that analysts incorporate local information into their forecasts. Analysts rely more on local signals when less firm-wide information is available. This incorporation of noisy local firm information has firm-level implications. Examining across industries, we find causal evidence that geographic concentration of analysts increases consensus forecast errors and decreases fi...
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作者：Glode, Vincent; Opp, Christian C.
作者单位：University of Pennsylvania; University of Rochester; National Bureau of Economic Research
摘要：We propose a model of strategic renegotiation in which businesses are sequentially interconnected through their liabilities. This financing structure, which we refer to as a credit chain, gives rise to externalities, as each lender's willingness to provide concessions to its borrower depends on how this lender's own liabilities are expected to be renegotiated. We highlight how government interventions aimed at preventing default waves should account for private renegotiation incentives and int...
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作者：Engelberg, Joseph; Henriksson, Matthew; Manela, Asaf; Williams, Jared
作者单位：University of California System; University of California San Diego; University of Tennessee System; University of Tennessee Knoxville; Washington University (WUSTL); Reichman University; State University System of Florida; University of South Florida
摘要：We analyze the partisanship of Commissioners at the SEC and Governors at the Federal Reserve Board. Using recent advances in machine learning, we identify partisan phrases in Congress, such as red tape and climate change, and observe their usage among regulators. Although the Fed has remained relatively nonpartisan throughout our sample period (1930-2019), we find that partisanship among SEC Commissioners rose to an all-time high during the 2010-2019 period, driven by more-partisan Commissione...
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作者：He, Yazhou Ellen; Kahraman, Bige; Lowry, Michelle
作者单位：University of Manchester; University of Oxford; Center for Economic & Policy Research (CEPR); Drexel University
摘要：We examine whether shareholder votes in environmental and social (ES) proposals are informative about firms' ES risks. ES proposals are unique in that they nearly always fail. We examine whether mutual funds' support for these failed proposals contains information about the ES risks that firms face. Higher support in failed ES proposals predicts subsequent ES incidents and the effects of these incidents on shareholder value. Examining the detailed records of fund votes, we find that agency fri...
