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作者：Schmidt, Cornelius; Fahlenbrach, Ruediger
作者单位：Norwegian School of Economics (NHH); Swiss Federal Institutes of Technology Domain; Ecole Polytechnique Federale de Lausanne; Swiss Finance Institute (SFI)
摘要：We investigate whether corporations and their executives react to an exogenous change in passive institutional ownership and alter their corporate governance structure. We find that exogenous increases in passive ownership lead to increases in CEO power and fewer new independent director appointments. Consistent with these changes not being beneficial for shareholders, we observe negative announcement returns to the appointments of new independent directors. We also show that firms carry out w...
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作者：Hu, Grace Xing; Pan, Jun; Wang, Jiang
作者单位：University of Hong Kong; Massachusetts Institute of Technology (MIT); National Bureau of Economic Research
摘要：From 2007 to June 2013, a small group of fee-paying, high-speed traders receive the Michigan Index of Consumer Sentiment two seconds before its broader release. Within this early peek window, we find highly concentrated trading and a fast price discovery of less than 200 milliseconds. Outside this narrow window, general investors trade at fully adjusted prices. We further establish a causal relationship between the early peek mechanism and the fast price discovery by isolating the impact of th...
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作者：Gulen, Huseyin; O'Brien, William J.
作者单位：Purdue University System; Purdue University; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：We use the practice of employee option repricing to investigate how shareholder involvement in firm compensation policies affects the quality of firm governance. We find that a 2003 reform that empowered shareholders to approve or reject repricing proposals led to value increases in previous repricers. The likelihood of repricing becomes less sensitive to poor manager performance, but remains similarly sensitive to bad luck, after the reform. Average post-repricing changes in firm performance ...
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作者：Hugonnier, Julien; Morellec, Erwan
作者单位：Swiss Finance Institute (SFI); Swiss Federal Institutes of Technology Domain; Ecole Polytechnique Federale de Lausanne; Centre for Economic Policy Research - UK
摘要：We develop a dynamic model of banking to assess the effects of liquidity and leverage requirements on banks' financing decisions and insolvency risk. In this model, banks face taxation, issuance costs of securities, and default costs and maximize shareholder value by choosing their debt-to-asset ratio, deposits-to-debt ratio, liquid asset holdings, equity issuance and default policies in response to these frictions as well as regulatory requirements. Our analytic characterization of the bank p...
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作者：Kaniel, Ron; Parham, Robert
作者单位：University of Rochester; Centre for Economic Policy Research - UK
摘要：We exploit a novel natural experiment to establish a causal relation between media attention and consumer investment behavior, independent of the conveyed information. Our findings indicate a 31% local average increase in quarterly capital flows into mutual funds mentioned in a prominent Wall Street Journal Category Kings ranking list, compared to those funds which just missed making the list. This flow increase is about seven times larger than extra flows due to the well-documented performanc...
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作者：Amiram, Dan; Beaver, William H.; Landsman, Wayne R.; Zhao, Jianxin
作者单位：Columbia University; Stanford University; University of North Carolina; University of North Carolina Chapel Hill; Emory University
摘要：This study shows that initiation of credit default swap (CDS) trading for an entity's debt increases the share of loans retained by loan syndicate lead arrangers and increases loan spread. These findings are consistent with CDS initiation reducing the effectiveness of a lead arranger's stake in the loan to serve as a mechanism to address the adverse selection and moral hazard problems in the loan syndicate. Additional findings corroborate this interpretation by revealing a moderating effect fo...
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作者：Gu, Tiantian
作者单位：Northeastern University
摘要：U.S. multinational firms hold significantly more cash than domestic firms. I study this cash differential using a dynamic model featuring corporate physical and intangible investment, cross-border decisions, and financial policies. I find that the cash differential diminishes by 42% if repatriation costs are set to zero. Hence, costly repatriation induces cash accumulation offshore. Further, firms that invest overseas have different ex ante cash policies from firms that do not. I examine this ...
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作者：Eisenbach, Thomas M.
作者单位：Federal Reserve System - USA; Federal Reserve Bank - New York
摘要：Why does the market discipline that financial intermediaries face seem too weak during booms and too strong during crises? This paper shows in a general equilibrium setting that rollover risk as a disciplining device is effective only if all intermediaries face purely idiosyncratic risk. However, if assets are correlated, a two-sided inefficiency arises: Good aggregate states have intermediaries taking excessive risks, while bad aggregate states suffer from costly fire sales. The driving force...
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作者：Brown, David C.; Davies, Shaun William
作者单位：University of Arizona; University of Colorado System; University of Colorado Boulder
摘要：We consider a model of active asset management in which mutual fund managers exert unobservable effort to earn excess returns. Investors allocate capital to actively managed funds and passively managed products. In equilibrium, investors are indifferent between investing an additional dollar with an active manager or with a passively managed product. As passively managed products become more attractive to investors, active managers' revenues froin portfolio-management services fall, reducing t...
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作者：Lee, Charles M. C.; So, Eric C.
作者单位：Stanford University; Massachusetts Institute of Technology (MIT)
摘要：We show that analyst coverage proxies contain information about expected returns. We decompose analyst coverage into abnormal and expected components using a simple characteristic-based model and show that firms with abnormally high analyst coverage subsequently outperform firms with abnormally low coverage by approximately 80 basis points per month. We also show abnormal coverage rises following exogenous shocks to underpricing and predicts improvements in firms' fundamental performance, sugg...
