-
作者：Leonello, Agnese
作者单位：European Central Bank
摘要：This paper studies the effects of government guarantees on the interconnection between banking and sovereign debt crises in a framework where both the banks and the government are fragile and the credibility and feasibility of the guarantees are determined endogenously. The analysis delivers some new results on the role of guarantees in the bank sovereign nexus. First, guarantees emerge as a key channel linking banks' and sovereign stability, even in the absence of banks' holdings of sovereign...
-
作者：Leverty, J. Tyler; Grace, Martin F.
作者单位：University of Wisconsin System; University of Wisconsin Madison; Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University
摘要：This paper investigates whether elections delay regulatory action against failing financial institutions by exploiting the cross-sectional and time-series heterogeneity in the exogenous electoral cycles of US insurance regulators and governors. We find causal evidence that regulators delay interventions before elections. The extent of the delay is larger for elected regulators than regulators appointed by the governor. Interventions by appointed regulators are less likely before competitive gu...
-
作者：Page, T. Beau
作者单位：Tulane University
摘要：I present and estimate a dynamic model of chief executive officer (CEO) compensation and effort provision. I find that variation in CEO attributes explains the majority of variation in compensation (equity and total) but little of the variation in firm value. The primary drivers of cross-sectional compensation are risk aversion and influence on the board. Additionally, I estimate the magnitude of CEO agency issues. Removing CEO influence increases shareholder value in the typical firm by 1.74%...
-
作者：Dimmock, Stephen G.; Gerken, William C.; Ivkovic, Zoran; Weisbenner, Scott J.
作者单位：Nanyang Technological University; University of Kentucky; Michigan State University; University of Illinois System; University of Illinois Urbana-Champaign
摘要：Differences in accrued gains and investors' tax-sensitivity induce variation in a capital gains lock-in effect across mutual funds even for the same stock at the same time. Exploiting this variation, we show this effect influences funds' governance decisions: higher capital gains decrease the likelihood a fund exits prior to contentious votes and increase the likelihood a fund votes against management. Consistent with tax motivation, these findings are concentrated among funds with tax-sensiti...
-
作者：Buchak, Greg; Matvos, Gregor; Piskorski, Tomasz; Seru, Amit
作者单位：University of Chicago; University of Texas System; University of Texas Austin
摘要：Shadow bank market share in residential mortgage origination nearly doubled from 2007 to 2015, with particularly dramatic growth among online fintech lenders. We study how two forces, regulatory differences and technological advantages, contributed to this growth. Difference in difference tests exploiting geographical heterogeneity induced by four specific increases in regulatory burden capital requirements, mortgage servicing rights, mortgage related lawsuits, and the movement of supervision ...
-
作者：Lin, Xiaoji; Wang, Chong; Wang, Neng; Yang, Jinqiang
作者单位：University of Minnesota System; University of Minnesota Twin Cities; United States Department of Defense; United States Navy; Naval Postgraduate School; Columbia University; National Bureau of Economic Research; Shanghai University of Finance & Economics
摘要：We study the impact of stochastic interest rates and capital illiquidity on investment and firm value by incorporating a widely used arbitrage-free term structure model of interest rates into a standard g theoretic framework. Our generalized q model informs us to use corporate credit-risk information to predict investments when empirical measurement issues of Tobin's average q are significant (e.g., equity is much more likely to be mis-priced than debt), as in Philippon (2009). We find, consis...
-
作者：Comerton-Forde, Carole; Malinova, Katya; Park, Andreas
作者单位：University of Toronto; University of Toronto; University Toronto Mississauga; University of Toronto
摘要：We examine the impact of a rule in the Canadian equities market that requires dark orders to offer price improvement over displayed orders. We show that this rule eliminated intermediation of retail orders in the dark and shifted retail orders onto the lit market with the lowest trading fee. Intermediaries shifted liquidity supply to this market leading to increased displayed liquidity. We conclude that reducing retail order segmentation enhances lit liquidity. Despite the improvement in liqui...
-
作者：Farago, Adam; Tedongap, Romeo
作者单位：University of Gothenburg; ESSEC Business School
摘要：In an intertemporal equilibrium asset pricing model featuring disappointment aversion and changing macroeconomic uncertainty, we show that besides the market return and market volatility, three disappointment-related factors are also priced: a downstate factor, a market downside factor, and a volatility downside factor. We find that expected returns on various asset classes reflect premiums for bearing undesirable exposures to these factors. The signs of estimated risk premiums are consistent ...
-
作者：Ewens, Michael; Nanda, Ramana; Rhodes-Kropf, Matthew
作者单位：California Institute of Technology; Harvard University; National Bureau of Economic Research; Massachusetts Institute of Technology (MIT)
摘要：We study how technological shocks to the cost of starting new businesses have led the venture capital model to adapt in fundamental ways over the prior decade. We both document and provide a framework to understand the changes in the investment strategy of venture capitalists (VCs) in recent years - an increased prevalence of a spray and pray investment approach - where investors provide a little funding and limited governance to an increased number of startups that they are more likely to aba...
-
作者：Bird, Andrew
作者单位：Carnegie Mellon University
摘要：Understanding the effects of taxes on executive compensation provides insight into the process determining this compensation and is a key input to top income tax rate policy. A 2010 tax reform in Canada, which greatly increased the effective tax rate on stock option compensation for a subset of firms, provides a natural experiment with which to address this issue. Difference-in-differences estimates suggest that this tax increase resulted in an immediate reduction in both stock option grants a...
