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作者：Grenadier, Steven R.; Malenko, Andrey; Strebulaev, Ilya A.
作者单位：Stanford University; National Bureau of Economic Research
摘要：We provide a real-options model of an industry in which agents time abandonment of their projects in an effort to protect their reputations. Agents delay abandonment attempting to signal quality. When a public common shock forces abandonment of a small fraction of projects irrespective of agents' quality, many agents abandon their projects strategically even if they are unaffected by the shock. Such blending in with the crowd effect creates an additional incentive to delay abandonment ahead of...
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作者：Agarwal, Sumit; Amromin, Gene; Ben-David, Itzhak; Chomsisengphet, Souphala; Evanoff, Douglas D.
作者单位：National University of Singapore; Federal Reserve System - USA; Federal Reserve Bank - Chicago; University System of Ohio; Ohio State University; National Bureau of Economic Research; United States Department of the Treasury; Office of the Comptroller of the Currency
摘要：We measure the effect of a 2006 antipredatory pilot program in Chicago on mortgage default rates to test whether predatory lending was a key element in fueling the subprime crisis. Under the program, risky borrowers or risky mortgage contracts or both triggered review sessions by housing counselors who shared their findings with the state regulator. The pilot program cut market activity in half, largely through the exit of lenders specializing in risky loans and through a decline in the share ...
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作者：Lee, Jongsub; Lee, Kwang J.; Nagarajan, Nandu J.
作者单位：State University System of Florida; University of Florida; U.S. Securities & Exchange Commission (SEC); Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
摘要：For 2,695 US corporations from 1996 to 2009, we find that alignment in political orientation between the chief executive officer (CEO) and independent directors is associated with lower firm valuations, lower operating profitability, and increased internal agency conflicts such as a reduced likelihood of dismissing poorly performing CEOs, a lower CEO pay-performance sensitivity, and a greater likelihood of accounting fraud. Importantly, we show that our results are driven neither by the effect...
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作者：Manela, Asaf
作者单位：Washington University (WUSTL)
摘要：How does the speed by which information diffuses affect its value to a stock market investor? In a structural model solved in closed-form, this speed has two opposing effects on the empirically dominant term of the value of information. Faster-diffusing information means quicker and less noisy profits, but, also increases competing informed trading, impounding more information into prices and eroding profits. Structural empirical analysis of stock market reaction to drug approvals using media ...
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作者：Grullon, Gustavo; Underwood, Shane; Weston, James P.
作者单位：Rice University; University of Alabama System; University of Alabama Tuscaloosa
摘要：We test the hypothesis that investment banking networks affect stock prices and trading behavior. Consistent with the notion that investment banks serve as information hubs for segmented groups of investors, the stock prices of firms that use the same lead underwriter during their equity offerings tend to move together. We also find that when firms switch underwriters between their initial public offering (IPO) and a seasoned equity offering (SEO), they comove less with the stocks associated w...
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作者：Kadan, Ohad; Liu, Fang
作者单位：Washington University (WUSTL)
摘要：Traditional performance evaluation measures do not account for tail events and rare disasters. To address this issue, we reinterpret the riskiness measures of Aumann and Serrano (2008) and Foster and Hart (2009) as performance indices. We derive the moment properties of these indices and their sensitivity to rare disasters and show that they are consistent with the asset pricing literature. As applications, we show that anomalous investment strategies such as momentum or investment in private ...
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作者：Acharya, Viral; Almeida, Heitor; Ippolito, Filippo; Perez, Ander
作者单位：National Bureau of Economic Research; University of Illinois System; University of Illinois Urbana-Champaign; Pompeu Fabra University
摘要：We propose a theory of credit lines provided by banks to firms as a form of monitored liquidity insurance. Bank monitoring and resulting revocations help control illiquidity-seeking behavior of firms insured by credit lines. The cost of credit lines is thus greater for firms with high liquidity risk, which in turn are likely to use cash instead of credit lines. We test this implication for corporate liquidity management by identifying exogenous shocks to liquidity risk of firms in corporate bo...
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作者：Harford, Jarrad; Uysal, Vahap B.
作者单位：University of Washington; University of Washington Seattle; University of Oklahoma System; University of Oklahoma - Norman
摘要：Prior research has shown that differential access to debt markets significantly affects capital structure. In this paper, we examine the effect of access to debt markets on investment decisions by using debt ratings to indicate bond market access. We find that rated firms are more likely to undertake acquisitions than nonrated firms. This finding remains even after accounting for firm characteristics, for the probability of being rated, and in matched sample analysis as well as in subsamples b...
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作者：Previtero, Alessandro
作者单位：Western University (University of Western Ontario)
摘要：I investigate the strong negative relation between recent stock returns and the annuitization of retirement savings using a novel data set with over 100,000 actual payout decisions. After controlling for several standard explanations (e.g., wealth effects), I present evidence supporting naive beliefs and extrapolation from past returns. The effect of recent returns on annuitization dramatically increases with age, confirming that the elderly rely most heavily on recent information. My results ...
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作者：Cohn, Jonathan B.; Mills, Lillian F.; Towery, Erin M.
作者单位：University of Texas System; University of Texas Austin
摘要：This study uses corporate tax return data to examine the evolution of firms' financial structure and performance after leveraged buyouts (LBOs) for a comprehensive sample of 317 LBOs taking place between 1995 and 2007. We find little evidence of operating improvements subsequent to an LBO, although consistent with prior studies, we do observe operating improvements in the set of LBO firms that have public financial statements. We also find that firms do not reduce leverage after LBOs, even if ...
