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作者：Dasgupta, Sudipto; Zaldokas, Alminas
作者单位：Chinese University of Hong Kong; Lancaster University; Centre for Economic Policy Research - UK; Hong Kong University of Science & Technology
摘要：We consider the case of changing competition that comes from stronger antitrust enforcement around the world to show that, as the equilibrium switches from collusion to oligopolistic competition, firms step up investment and increase equity issuance. As a result, debt ratios fall. These results imply the importance of financial flexibility in surviving competitive threats. Our identification relies on a difference-in-differences estimation based on the staggered passage of leniency programs in...
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作者：Edmans, Alex; Levit, Doron; Reilly, Devin
作者单位：Centre for Economic Policy Research - UK; University of London; London Business School; European Corporate Governance Institute; Analysis Group Inc.
摘要：Conventional wisdom is that diversification weakens governance by spreading investors too thinly. We show that, when investors own multiple firms (common ownership), governance through both voice and exit can strengthen-even if the firms are in unrelated industries. Under common ownership, informed investors have flexibility over which assets to sell upon a liquidity shock. They sell low-quality firms first, thereby increasing price informativeness. In a voice model, investors' incentives to m...
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作者：Levit, Doron
作者单位：University of Pennsylvania
摘要：This paper studies communications between investors and firms as a form of corporate governance. Activist investors cannot force their ideas on companies; they must persuade the board or other shareholders that implementing these ideas is beneficial to the firm. I show that the threat of voice (i.e., launching a public campaign) facilitates communication, whereas the option to exit facilitates communication if and only if the proposal is risky relative to the status quo or voice is ineffective...
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作者：Benmelech, Efraim; Bergman, Nittai; Milanez, Anna; Mukharlyamov, Vladimir
作者单位：Northwestern University; National Bureau of Economic Research; Tel Aviv University; Organisation for Economic Co-operation & Development (OECD); Georgetown University
摘要：This paper identifies a new channel through which bankrupt firms undergoing liquidation impose negative externalities on their nonbankrupt peers. The liquidation of a retail chain weakens the economies of agglomeration in any given local area, reducing the attractiveness of retail centers for remaining stores and leading to contagion of financial distress. We find that firms with greater geographic exposure to bankrupt retailers are more likely to close stores in affected areas. We further sho...
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作者：Andrei, Daniel; Hasler, Michael; Jeanneret, Alexandre
作者单位：McGill University; University of Toronto; Universite de Montreal; HEC Montreal
摘要：Persistence risk is an endogenous source of risk that arises when a rational agent learns about the length of business cycles. Persistence risk is positive during recessions and negative during expansions. This asymmetry, which solely results from learning about persistence, causes expected returns, return volatility, and the price of risk to rise during recessions. Persistence risk predicts future excess returns, particularly at 3- to 7-year horizons. Its predictability is strongest around bu...
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作者：Appel, Ian R.; Gormley, Todd A.; Keim, Donald B.
作者单位：Boston College; Washington University (WUSTL); University of Pennsylvania
摘要：We analyze whether the growing importance of passive investors has influenced the campaigns, tactics, and successes of activists. We find activists are more likely to seek board representation when a larger share of the target company's stock is held by passively managed mutual funds. Furthermore, higher passive ownership is associated with increased use of proxy fights, settlements, and a higher likelihood the activist achieves board representation or the sale of the targeted company. Our fin...
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作者：Giannetti, Mariassunta; Saidi, Farzad
作者单位：Stockholm School of Economics; Centre for Economic Policy Research - UK; European Corporate Governance Institute
摘要：We explore whether lenders' decisions to provide liquidity in periods of distress are affected by the extent to which they internalize the negative spillovers of industry downturns. We conjecture that high-market-share lenders are more likely to internalize negative spillovers and show that they provide liquidity to industries in distress when fire sales are likely to ensue. High-market-share lenders also provide liquidity to customers and suppliers of distressed industries when the disruption...
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作者：Dessaint, Olivier; Foucault, Thierry; Fresard, Laurent; Matray, Adrien
作者单位：University of Toronto; Hautes Etudes Commerciales (HEC) Paris; Swiss Finance Institute (SFI); Universita della Svizzera Italiana; University System of Maryland; University of Maryland College Park; Princeton University
摘要：Firms significantly reduce their investment in response to nonfundamental drops in the stock price of their product-market peers. We argue that this results stems from managers' limited ability to filter out the noise in the stock prices when using them as signals about their investment opportunities. Ensuing losses of capital investment and shareholders' wealth are economically large and even affect firms not facing severe financing constraints or agency problems. Our findings offer a novel p...
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作者：Ao, Mengmeng; Li, Yingying; Zheng, Xinghua
作者单位：Xiamen University; Hong Kong University of Science & Technology
摘要：This paper introduces a newapproach to constructing optimal mean-variance portfolios. The approach relies on a novel unconstrained regression representation of the mean-variance optimization problem combined with high-dimensional sparse-regression methods. Our estimated portfolio, under a mild sparsity assumption, controls for risk and attains the maximum expected return as both the numbers of assets and observations grow. The superior properties of our approach are demonstrated through compre...
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作者：Hou, Kewei; van Dijk, Mathijs A.
作者单位：University System of Ohio; Ohio State University; Erasmus University Rotterdam; Erasmus University Rotterdam - Excl Erasmus MC
摘要：Many studies report that the size effect in the cross-section of stock returns disappeared after the early 1980s. This paper shows that its disappearance can be attributed to negative shocks to the profitability of small firms and positive shocks to big firms. After adjusting for the price impact of profitability shocks, we find a robust size effect in the cross-section of expected returns after the early 1980s. Our results highlight the importance of in-sample cash-flow shocks in understandin...
