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作者：Mueller, Philippe; Stathopoulos, Andreas; Vedolin, Andrea
作者单位：University of London; London School Economics & Political Science; University of Washington; University of Washington Seattle
摘要：We show that the cross-sectional dispersion of conditional foreign exchange (FX) correlation is countercyclical and that currencies that perform badly (well) during periods of high dispersion yield high (low) average excess returns. We also find a negative cross-sectional association between average FX correlations and average option-implied FX correlation risk premiums. Our findings show that while investors in spot currency markets require a positive risk premium for exposure to high dispers...
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作者：Anderson, Anders; Baker, Forest; Robinson, David T.
作者单位：Stockholm School of Economics; Swedish House of Finance; Duke University
摘要：We measure financial literacy among Linkedln members, complementing standard questions with additional questions that allow us to gauge self-perceptions of financial literacy. Average financial literacy is surprisingly low given the demographics of our sample: fewer than two-thirds of chief financial officers, chief executive officers, and chief operating officers complete the test correctly. Financial literacy, precautionary savings and retirement planning are positively correlated, but this ...
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作者：Liu, Laura Xiaolei; Shu, Haibing; Wei, K. C. John
作者单位：Peking University; Peking University; Shanghai Jiao Tong University; Hong Kong Polytechnic University
摘要：Models of political risk predict that increases in political uncertainty cause stock prices to fall, especially for politically sensitive firms. We use the event of the Bo Xilai political scandal in 2012 in China as an exogenous shock to identify the impact of political uncertainty on asset prices. We document that the Bo scandal caused a significant drop in stock prices, especially for firms that are more politically sensitive. Further analysis shows that the stock price drop is mainly driven...
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作者：Hwang, Byoung-Hyoun; Kim, Hugh Hoikwang
作者单位：Cornell University; Korea University; University of South Carolina System; University of South Carolina Columbia
摘要：We quantify the effects of easy-to-read disclosure documents on firm value by analyzing shareholder reports of closed-end investment companies in which the company's value can be estimated separately from the value of the company's underlying assets. Using a copy-editing software application that counts the pervasiveness of the most important 'writing faults' that make a document harder to read, our analysis provides evidence that issuing financial disclosure documents with low readability cau...
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作者：Billett, Matthew T.; Garfinkel, Jon A.; Yu, Miaomiao
作者单位：Indiana University System; IU Kelley School of Business; Indiana University Bloomington; University of Iowa; University of Saskatchewan
摘要：We explore how asymmetric information in financial markets affects outcomes in product markets. Difference-in-difference tests around brokerage house merger/closure events (which increase asymmetric information through reductions in analyst coverage) indicate worse industry-adjusted sales growth for shocked firms than for their peers. Our results are consistent with Bolton and Scharfstein's (1990) tradeoff between investor agency concerns and predation risk. Further support is found in stronge...
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作者：Babkin, Anton; Glover, Brent; Levine, Oliver
作者单位：University of Wisconsin System; University of Wisconsin Madison; Carnegie Mellon University; University of Wisconsin System; University of Wisconsin Madison
摘要：Corporate inversion, the process of redomiciling for tax purposes, reduces corporate income taxes, but it imposes a personal tax cost that is shareholder-specific. We develop a model, incorporating the corporate tax benefits and personal tax costs, to quantify the return to inversion for different shareholders. Foreign and tax-exempt investors, along with the chief executive officer, disproportionately benefit. We show that an inversion simultaneously reduces the wealth of many taxable shareho...
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作者：Dessaint, Olivier; Golubov, Andrey; Volpin, Paolo
作者单位：University of Toronto; City St Georges, University of London
摘要：Labor restructuring is a key driver of takeovers and the associated synergy gains worldwide. In a difference-in-differences research design, we show that major increases in employment protection reduce takeover activity by 14-27% and the combined firm gains (synergies) by over half. Consistent with the labor channel behind these effects, deals with greater potential for workforce restructuring show a greater reduction in volume, number, and synergies. Increases in employment protection impede ...
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作者：Acharya, Viral; Xu, Zhaoxia
作者单位：New York University; New York University; New York University Tandon School of Engineering
摘要：In this paper, we examine the relation between innovation and a firm's financial dependence using a sample of privately held and publicly traded US firms. We find that public firms in external finance dependent industries spend more on research and development and generate a better patent portfolio than their private counterparts. However, public firms in internal finance dependent industries do not have a better innovation profile than private firms. The results are robust to various empirica...
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作者：Dutta, Sunil; Nezlobin, Alexander
作者单位：University of California System; University of California Berkeley
摘要：We study how information disclosure affects the cost of equity capital and investor welfare in a dynamic setting. We show that a firm's cost of capital decreases (increases) in the precision of public disclosure if the firm's growth rate is below (above) a certain threshold. The threshold growth rate is higher when the firm's cash flows are more persistent, or when other firms in the economy are growing at low rates. While current shareholders always prefer maximum public disclosure, future sh...
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作者：Cen, Ling; Maydew, Edward L.; Zhang, Liandong; Zuo, Luo
作者单位：University of Toronto; University Toronto Scarborough; University of Toronto; University of North Carolina; University of North Carolina Chapel Hill; City University of Hong Kong; Cornell University
摘要：We investigate whether firms in close customer supplier relationships are better able to identify and implement tax avoidance strategies via supply chains. Consistent with our prediction, we find that both principal customers and their dependent suppliers avoid more taxes than other firms. Further analysis suggests that principal customers and dependent suppliers likely engage in tax strategies involving shifting profits to tax haven subsidiaries. Moreover, tax benefits appear to explain both ...
