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作者：Li, Di; Taylor, Lucian A.; Wang, Wenyu
作者单位：Peking University Shenzhen Graduate School (PKU Shenzhen); Peking University; University of Pennsylvania; Indiana University System; Indiana University Bloomington
摘要：If opportunistic acquirers can buy targets using overvalued shares, then there is an inefficiency in the merger and acquisition (M&A) market: the most overvalued rather than the highest-synergy bidder may buy the target. We quantify this inefficiency using a structural estimation approach. We find that the M&A market allocates resources efficiently on average. Opportunistic bidders crowd out high-synergy bidders in only 7% of transactions, resulting in an average synergy loss equal to 9% of th...
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作者：Joslin, Scott; Konchitchki, Yaniv
作者单位：University of Southern California; University of California System; University of California Berkeley
摘要：This paper provides theory and evidence that a low-dimensional term structure model can simultaneously price bonds and related options. It shows that a component of volatility risk largely unrelated to the shape of the yield curve is a determinant of expected excess returns for holding long maturity bonds. It also finds evidence for this return relationship both in the model and directly in the data through regression analysis. The paper also identifies a link between corporate earnings perfor...
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作者：Wang, Wenyu
作者单位：Indiana University System; Indiana University Bloomington
摘要：Because firms' takeover motives are unobservable to investors, mergers are only partially anticipated and often appear as mixed blessings for acquirers. I construct and estimate a model to study the causes and consequences of bid anticipation and information revelation in mergers. Controlling for the market's reassessment of the acquirer's stand-alone value, I estimate that acquirers gain 4% from a typical merger. The total value of an active merger market averages 13% for acquirers, part of w...
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作者：Phua, Kenny; Tham, T. Mandy; Wei, Chishen
作者单位：Nanyang Technological University; Singapore Management University
摘要：We find evidence that the leadership of overconfident chief executive officers (CEOs) induces stakeholders to take actions that contribute to the leader's vision. By being intentionally overexposed to the idiosyncratic risk of their firms, overconfident CEOs exhibit a strong belief in their firms' prospects. This belief attracts suppliers beyond the firm's observable expansionary corporate activities. Overconfident CEOs induce more supplier commitments including greater relationship-specific i...
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作者：Boguth, Oliver; Simutin, Mikhail
作者单位：Arizona State University; Arizona State University-Tempe; University of Toronto
摘要：Prior theory suggests that time variation in the degree to which leverage constraints bind affects the pricing kernel. We propose a measure for this leverage constraint tightness by inverting the argument that constrained investors tilt their portfolios to riskier assets. We show that the average market beta of actively managed mutual funds intermediaries facing leverage restrictions captures their desire for leverage and thus the tightness of constraints. Consistent with theory, it strongly p...
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作者：Beck, Thorsten; Degryse, Hans; De Haas, Ralph; van Horen, Neeltje
作者单位：City St Georges, University of London; KU Leuven; European Bank of Reconstructon & Development; European Central Bank; De Nederlandsche Bank NV; Tilburg University; Centre for Economic Policy Research - UK; Bank of England
摘要：We conduct face-to-face interviews with bank chief executive officers to classify 397 banks across 21 countries as relationship or transaction lenders. We then use the geographic coordinates of these banks' branches and of 14,100 businesses to analyze how the lending techniques of banks near firms are related to credit constraints at two contrasting points of the credit cycle. We find that while relationship lending is not associated with credit constraints during a credit boom, it alleviates ...
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作者：Lee, Jongsub; Naranjo, Andy; Velioglu, Guner
作者单位：Seoul National University (SNU); State University System of Florida; University of Florida
摘要：We find that credit default swap (CDS) spreads contribute significantly to price discovery in financial markets when firm-specific credit information is prominent. Using 3,470 S&P rating notch and watch changes for US public and private entities from 2001-2013, we show that CDS prices contain unique firm credit risk information that is not captured by the prices of other related securities such as stocks and bonds of the same firm. Credit information unidirectionally flows from CDS to bonds, p...
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作者：Adams, Renee; Keloharju, Matti; Knupfer, Samuli
作者单位：University of New South Wales Sydney; Aalto University; BI Norwegian Business School
摘要：What makes a successful CEO? We combine a near-exhaustive sample of male CEOs from Swedish companies with data on their cognitive and noncognitive ability and height at age 18. CEOs differ from other high-skill professions most in noncognitive ability. The median large-company CEO belongs to the top 5% of the population in the combination of the three traits. The traits have a monotonic and close to linear relation with CEO pay, but their correlations with pay, firm size, and CEO fixed effects...
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作者：Chaigneau, Pierre; Edmans, Alex; Gottlieb, Daniel
作者单位：Queens University - Canada; Universite de Montreal; HEC Montreal; University of London; London Business School; Centre for Economic Policy Research - UK; European Corporate Governance Institute; Washington University (WUSTL)
摘要：This paper studies the value of more precise signals on agent performance in an optimal contracting model with endogenous effort. With limited liability, the agent's wage is increasing in output only if output exceeds a threshold, else it is zero regardless of output. If the threshold is sufficiently high, the agent only beats it, and is rewarded for increasing output through greater effort, if there is a high noise realization. Thus, a fall in output volatility reduces effort incentives infor...
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作者：Kallunki, Jenni; Kallunki, Juha-Pekka; Nilsson, Henrik; Puhakka, Mikko
作者单位：University of Oulu; Aalto University; Stockholm School of Economics
摘要：We explore why insiders engage in informed trading, given the surprisingly small average insider returns reported in the literature and the potential costs involved. We begin by proposing a model of an insider's decision to engage in insider trading. We then empirically test the model's predictions using archival data of corporate insiders in Sweden. Consistent with the model, we find that less wealthy insiders are more likely to time their insider selling, and to sell in greater magnitudes, p...
