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作者：Bharath, Sreedhar; Dahiya, Sandeep; Saunders, Anthony; Srinivasan, Anand
作者单位：New York University; University of Michigan System; University of Michigan; Georgetown University; National University of Singapore
摘要：While many empirical studies document borrower benefits of lending relationships, less is known about lender benefits. A relationship tender's informational advantage over a non-relationship lender may generate a higher probability of selling information-sensitive products to its borrowers. Our results show that the probability of a relationship lender providing a future loan is 42%, while for a non-relationship lender, this probability is 3%. Consistent with theory, we find that borrowers wit...
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作者：Laeven, Luc; Levine, Ross
作者单位：The World Bank; Center for Economic & Policy Research (CEPR); Brown University
摘要：This paper investigates whether the diversity of activities conducted by financial institutions influences their market valuations. We find that there is a diversification discount: The market values of financial conglomerates that engage in multiple activities, e.g., lending and non-lending financial services, are lower than if those financial conglomerates were broken into financial intermediaries that specialize in the individual activities. While difficult to identify a single causal facto...
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作者：Lundblad, Christian
作者单位：University of North Carolina; University of North Carolina Chapel Hill
摘要：Previous studies typically find a statistically insignificant relation between the market risk premium and its expected volatility. Further, several of these studies estimate a negative risk return tradeoff, contrary to the predictions of mainstream theory. Using simulations, I demonstrate that even 100 years of data constitute a small sample that may easily lead to this finding even though the true risk return tradeoff is positive. Small-sample inference is plagued by the fact that conditiona...
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作者：Clarke, Jonathan; Khorana, Ajay; Patel, Ajay; Rau, P. Raghavendra
作者单位：Purdue University System; Purdue University; University System of Georgia; Georgia Institute of Technology; Wake Forest University
摘要：Using a sample of all-star analysts who switch investment banks, we examine (1) whether analyst behavior is influenced by banking relationships and (2) whether analyst behavior affects investment banking deal flow. Although the stock coverage decision depends on the relationship with the client firms, we find no evidence that analysts change their optimism or recommendation levels when joining a new firm. Investment banking deal flow is related to analyst reputation only for equity transaction...
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作者：Nimalendran, M.; Ritter, Jay R.; Zhang, Donghang
作者单位：State University System of Florida; University of Florida; University of South Carolina System; University of South Carolina Columbia
摘要：Underwriters using bookbuilding can allocate shares of initial public offerings (IPOs) on the basis of, among other things, commissions paid by investors. In testing the hypothesis that investors trade liquid stocks in order to affect their IPO allocations, we find that money left on the table by IPOs is related to the trading volume of the 50 most liquid stocks near the offer date. For an IPO that leaves $1 billion on the table, there is abnormal volume of 2.7% to 4.1 % in the 50 most liquid ...
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作者：Brown, Gregory; Kapadia, Nishad
作者单位：University of North Carolina; University of North Carolina Chapel Hill
摘要：We show that the increase in firm-specific risk in the US stock market is the result of new listings by riskier companies. In addition, our results explain why prior researchers have found that growth opportunities, profit margin, firm size, and industry composition (among other factors) are related to increases in firm-specific risk. The new listing effect is not driven by small companies becoming riskier but instead by a riskier sub-sample of the economy becoming publicly traded. These resul...
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作者：Acharya, Viral V.; Johnson, Timothy C.
作者单位：University of London; London Business School
摘要：Insider trading in the credit derivatives market has become a significant concern for regulators and participants. This paper attempts to quantify the problem. Using news reflected in the stock market as a benchmark for public information, we find significant incremental information revelation in the credit default swap market under circumstances consistent with the use of non-public information by informed banks. The information revelation occurs only for negative credit news and for entities...
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作者：Kang, Jun-Koo; Liu, Wei-Lin
作者单位：Michigan State University; Michigan State University's Broad College of Business
摘要：We examine the extent to which universal banking in Japan creates conflicts of interest. We find that as banks enter the securities business, they discount the price of the corporate bonds they underwrite significantly in an effort to attract investors, thereby generating conflicts of interest that are harmful to issuers. Further, we find that close prior lending relationships between banks and their client issuers is the driving force behind such conflicts and that competition from investment...
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作者：Officer, Micah S.
作者单位：University of Southern California
摘要：This paper documents average acquisition discounts for stand-alone private firms and subsidianes of other firms (unlisted targets) of 15% to 30% relative to acquisition multiples for comparable publicly traded targets. My results are strongly consistent with the notion that sale prices for unlisted targets are affected by both the need for, and availability of, the liquidity provided by the buyi.r. Corporate parents are significantly liquidity-constraincd prior to the sale of a subsidiary, par...
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作者：Green, Richard C.; Hollifield, Burton; Schuerhoff, Norman
作者单位：Carnegie Mellon University; Swiss Finance Institute (SFI); University of Lausanne
摘要：Municipal bonds trade in decentralized broker-dealer markets, and are underpriced when issued, but unlike equities the average price rises slowly over several days. Newly issued municipal bonds have high levels of price dispersion and the average price rises because the mix of trade sizes changes over time. While large trades occur close to the reoffering price, small trades occur between the reoffering price to as much as 5% above the reoffering price. Using a mixed-distribution model we quan...
