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作者：Kim, Chansog (Francis); Pantzalis, Christos; Park, Jung Chul
作者单位：State University System of Florida; University of South Florida; City University of Hong Kong; Auburn University System; Auburn University
摘要：We show that political geography has a pervasive effect on the cross-section of stock returns. We collect election results over a 40-year period and use a political alignment index (PAI) of each state's leading politicians with the ruling (presidential) party to proxy for local firms' proximity to political power. Firms whose headquarters are located in high PAI states outperform those located in low PAI states, both in terms of raw returns, and on a risk-adjusted basis. Overall, although we c...
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作者：Wang, Chong; Wang, Neng; Yang, Jinqiang
作者单位：Columbia University; United States Department of Defense; United States Navy; Naval Postgraduate School; National Bureau of Economic Research; Shanghai University of Finance & Economics
摘要：We develop an incomplete-markets q-theoretic model to study entrepreneurship dynamics. Precautionary motive, borrowing constraints, and capital illiquidity lead to underinvestment, conservative debt use, under-consumption, and less risky portfolio allocation. The endogenous liquid wealth-illiquid capital ratio w measures time-varying financial constraint. The option to accumulate wealth before entry is critical for entrepreneurship. Flexible exit option is important for risk management purpose...
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作者：Palazzo, Berardino
作者单位：Boston University
摘要：In this paper I develop and empirically test a model that highlights how the correlation between cash flows and a source of aggregate risk affects a firm's optimal cash holding policy. In the model, riskier firms (i.e., firms with a higher correlation between cash flows and the aggregate shock) are more likely to use costly external funding to finance their growth option exercises and have higher optimal savings. This precautionary savings motive implies a positive relation between expected eq...
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作者：Engelberg, Joseph; Gao, Pengjie; Parsons, Christopher A.
作者单位：University of California System; University of California San Diego; University of Notre Dame
摘要：When banks and firms are connected through interpersonal linkages - such as their respective management having attended college or previously worked together interest rates are markedly reduced, comparable with single shifts in credit ratings. These rate concessions do not appear to reflect sweetheart deals. Subsequent firm performance, such as future credit ratings or stock returns, improves following a connected deal, suggesting that social networks lead to either better information flow or ...
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作者：Giannetti, Mariassunta; Laeven, Luc
作者单位：International Monetary Fund; Center for Economic & Policy Research (CEPR); Stockholm School of Economics
摘要：This paper shows that the collapse of the global market for syndicated loans during financial crises can in part be explained by a flight home effect whereby lenders rebalance their loan portfolios in favor of domestic borrowers. The home bias of lenders' loan origination increases by approximately 20% if the bank's home country experiences a banking crisis. This flight home effect is distinct from flight to quality because borrowers of different quality are equally affected. The results indic...
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作者：Dangl, Thomas; Hailing, Michael
作者单位：Utah System of Higher Education; University of Utah; Technische Universitat Wien
摘要：We evaluate predictive regressions that explicitly consider the time-variation of coefficients in a comprehensive Bayesian framework. For monthly returns of the S&P 500 index, we demonstrate statistical as well as economic evidence of out-of-sample predictability: relative to an investor using the historic mean, an investor using our methodology could have earned consistently positive utility gains (between 1.8% and 5.8% per year over different time periods). We also find that predictive model...
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作者：Duchin, Ran; Sosyura, Denis
作者单位：University of Washington; University of Washington Seattle; University of Michigan System; University of Michigan
摘要：This paper investigates the relation between corporate political connections and government investment. We study various forms of political influence, ranging from passive connections between firms and politicians, such as those based on politicians' voting districts, to active forms, such as lobbying, campaign contributions, and employment of connected directors. Using hand-collected data on firm applications for capital under the Troubled Asset Relief Program (TARP), we find that politically...
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作者：Thakor, Anjan V.
作者单位：Washington University (WUSTL)
摘要：In this paper I develop a model of a competitive financial system with unrestricted but costly entry and an endogenously determined number of competing financial institutions (banks for short). Banks can make standard loans on which plentiful historical data are available and unanimous agreement exists on default probabilities. Or banks can innovate and make new loans on which limited historical data are available, leading to possible disagreement over default probabilities. In equilibrium, ba...
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作者：Beltratti, Andrea; Stulz, Rene M.
作者单位：University System of Ohio; Ohio State University; Bocconi University; National Bureau of Economic Research; European Corporate Governance Institute
摘要：Though overall bank performance from July 2007 to December 2008 was the worst since the Great Depression, there is significant variation in the cross-section of stock returns of large banks across the world during that period. We use this variation to evaluate the importance of factors that have been put forth as having contributed to the poor performance of banks during the credit crisis. The evidence is supportive of theories that emphasize the fragility of banks financed with short-term cap...
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作者：Black, Bernard; Kim, Woochan
作者单位：Northwestern University; Korea University
摘要：Outside directors and audit committees are widely considered to be central elements of good corporate governance. We use a 1999 Korean law as an exogenous shock to assess whether and how board structure affects firm market value. The law mandates 50% outside directors and an audit committee for large public firms, but not smaller firms. We study this shock using event study, difference-in-differences, and instrumental variable methods, within an overall regression discontinuity approach. The l...
