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作者：Jiang, Liangliang; Levine, Ross; Lin, Chen
作者单位：Lingnan University; University of California System; University of California Berkeley; University of Hong Kong
摘要：Did regulatory reforms that lowered barriers to competition increase or decrease the quality of information that banks disclose to the public? By integrating the gravity model of investment with the state-specific process of bank deregulation that occurred in the United States from the 1980s through the 1990s, we develop a bank-specific, time-varying measure of deregulation-induced competition. We find that an intensification of competition reduced abnormal accruals of loan loss provisions and...
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作者：Jiang, Wei; Wan, Hualin; Zhao, Shan
作者单位：Columbia University; Shanghai Lixin University of Accounting & Finance; Grenoble Ecole Management
摘要：This study examines the voting behavior of independent directors of public companies in China from 2004-2012. The unique data at the individual-director level overcome endogeneity in both board formation and proposal selection by allowing analysis based on within-board proposal variation. Career-conscious directors, measured by age and the director's reputation value, are more likely to dissent; dissension is eventually rewarded in the marketplace in the form of more outside directorships and ...
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作者：Bhagwat, Vineet; Dam, Robert; Harford, Jarrad
作者单位：University of Oregon; University of Colorado System; University of Colorado Boulder; University of Washington; University of Washington Seattle
摘要：Firm values can substantially change between the time deal terms are set and the actual deal closing, risking renegotiation, or termination. We find increases in market volatility decrease subsequent deal activity, but only for public targets subject to an interim period. The effect is strongest when volatility is highest, for deals taking longer to close, and for larger targets. Merging parties attempt to shorten the interim window as risk increases. Firm- and industry-level uncertainty measu...
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作者：Koch, Andrew; Ruenzi, Stefan; Starks, Laura
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; University of Mannheim; University of Texas System; University of Texas Austin
摘要：We hypothesize that a source of commonality in a stock's liquidity arises from the correlated liquidity demand of the stock's investors. Focusing on correlated trading of mutual funds, we find that stocks with high mutual fund ownership have comovements in liquidity about twice as large as those for stocks with low mutual fund ownership. Further analysis shows that the channels for these comovements derive from both common ownership across funds and funds' correlated liquidity shocks. We obtai...
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作者：Fos, Vyacheslav; Jiang, Wei
作者单位：Boston College; Columbia University
摘要：When a proxy contest is looming, the rate at which CEOs exercise options to sell (hold) the resulting shares slows down by 80% (accelerates by 60%), consistent with their desire to maintain or strengthen voting rights when facing challenges. Such deviations are closely aligned with features unique to proxy contests, such as the record dates and nomination status, and are more pronounced when the private benefits are higher or when the voting rights are more crucial. The distortions suggest tha...
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作者：Korteweg, Arthur; Kraeussl, Roman; Verwijmeren, Patrick
作者单位：University of Southern California; University of Luxembourg; Emory University; University of Melbourne; University of Glasgow
摘要：This paper shows the importance of correcting for sample selection when investing in illiquid assets that trade endogenously. Using a sample of 32,928 paintings that sold repeatedly between 1960 and 2013, we find an asymmetric V-shaped relation between sale probabilities and returns. Adjusting for the resulting selection bias reduces average annual index returns from 8.7% to 6.3%, lowers Sharpe ratios from 0.27 to 0.11, and materially impacts portfolio allocations. Investing in a broad portfol...
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作者：Stango, Victor; Zinman, Jonathan
作者单位：University of California System; University of California Davis; Dartmouth College; National Bureau of Economic Research
摘要：We document substantial cross-individual dispersion in U.S. credit card borrowing costs, even after controlling for borrower risk and card characteristics. That remaining dispersion arises because cross-lender pricing heterogeneity generates dispersion in annual percentage rate (APR) offers to borrowers, and borrowers vary in shopping intensity. Our empirics match administrative data to self-reported card shopping intensity and use instruments suggested by fair lending law to account for the e...
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作者：Branger, Nicole; Kraft, Holger; Meinerding, Christoph
作者单位：University of Munster; Goethe University Frankfurt; Goethe University Frankfurt
摘要：It is a major challenge for asset pricing models to generate a high equity premium and a low risk-free rate while imposing realistic consumption dynamics. To address this issue, our paper proposes a novel pricing channel: we allow for consumption drops that can spark an economic crisis. This new feature generates a large equity premium even if possible consumption drops are of moderate size. In turn, our model also matches the consumption data of 42 countries along several dimensions. In parti...
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作者：Brown, Meta; Grigsby, John; van der Klaauw, Wilbert; Wen, Jaya; Zafar, Basit
作者单位：Federal Reserve System - USA; Federal Reserve Bank - New York; University of Chicago; Yale University
摘要：Young Americans are heavily reliant on debt and have clear financial literacy shortcomings. In this paper, we study the effects of exposure to financial training on debt outcomes in early adulthood among a large and representative sample of young Americans. Variation in exposure to financial training comes from statewide changes in high school graduation requirements. Using a flexible event study approach, we find that both mathematics and financial education, by and large, decrease reliance o...
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作者：Li, Zhi; Wang, Lingling
作者单位：University System of Ohio; Ohio State University; University of Connecticut
摘要：The percentage of S&P 500 firms using multiyear accounting-based performance (MAP) incentives for CEOs increased from 16.5% in 1996 to 43.3% in 2008. The use and design of MAP incentives depend on the signal quality of accounting versus stock performance, shareholder horizons, strategic imperatives, and board independence. After the technology bubble, option expensing, and the publicity of option backdating, firms increasingly use stock-based MAP plans to replace options, resulting in changes ...
