-
作者：Barone, Guglielmo; Schivardi, Fabiano; Sette, Enrico
作者单位：University of Bologna; Luiss Guido Carli University; European Central Bank; Bank of Italy
摘要：We study the effects on corporate loan rates of an unexpected change in the Italian legislation that forbade interlocking directorates between banks. Exploiting multiple firm-bank relationships to fully account for all unobserved heterogeneity, we find that prohibiting interlocks decreased the interest rates of previously interlocked banks by 14 basis points relative to other banks. The effect is stronger for high-quality firms and for loans extended by interlocked banks with a large joint mar...
-
作者：Andreani, Martina; Ellahie, Atif; Shivakumar, Lakshmanan
作者单位：INSEAD Business School; Utah System of Higher Education; University of Utah; University of London; London Business School
摘要：Focusing on the one-off tax gains and losses (i.e., windfalls) associated with the 2017 Tax Cuts and Jobs Act, we reexamine whether CEOs are rewarded for luck. We find that weakly monitored CEOs are compensated for the windfall tax gains but not penalized for the corresponding tax losses. No such pattern is observed for CEOs facing greater pay scrutiny. The pay for windfalls cannot be explained as rewards for CEOs' efforts, talents, political activities, or as firms sharing their tax gains wit...
-
作者：Malenko, Andrey; Malenko, Nadya; Spatt, Chester
作者单位：Boston College; Carnegie Mellon University
摘要：We analyze how a profit-maximizing proxy advisor designs vote recommendations and research reports. The advisor benefits from producing informative, unbiased reports, but only partially informative recommendations, biased against the a priori likely alternative. Such recommendations induce close votes, increasing controversy and thereby the relevance and value of proxy advice. Our results suggest shifting from an exclusive emphasis on recommendations, highlighting the importance of both report...
-
作者：Olsson, Martin; Tag, Joacim
作者单位：Research Institute of Industrial Economics (IFN)
摘要：Privatization of state-owned enterprises is on the agenda across the globe. Using Swedish data covering two decades, we show that productivity gains and headcount reductions are associated with economic costs for incumbent workers. Workers experience income losses and higher unemployment, but half of the losses are covered by the social safety net. We also find small positive effects on entrepreneurship and cash holdings but no meaningful effects on other labor market, family, health, or house...
-
作者：Lee, Tomy; Wang, Chaojun
作者单位：University of Pennsylvania
摘要：Over-the-counter (OTC) trading thrives despite competition from exchanges. We let OTC dealers cream skim from exchanges in an otherwise standard Glosten and Milgrom framework. Restricting the dealer's ability to cream skim induces cheap substitution: some traders exit while others with larger gains from trade enter. Cheap substitution implies trading costs, trade volumes, and market shares are poor policy indicators. In a benchmark case, restricting the dealer raises welfare only if trading co...
-
作者：Bolton, Patrick; Li, Ye; Wang, Neng; Yang, Jinqiang
作者单位：Centre for Economic Policy Research - UK; Imperial College London; University of London; London Business School; University of Washington; University of Washington Seattle; Shanghai Institute of International Finance & Economics; Shanghai University of Finance & Economics; Shanghai Institute of International Finance & Economics
摘要：We propose a theory of banking in which banks cannot perfectly control deposit flows. Facing uninsurable loan and deposit shocks, banks dynamically manage lending, wholesale funding, deposits, and equity. Deposits create value by lowering funding costs. However, when the bank is undercapitalized and at risk of breaching leverage requirements, the marginal value of deposits can turn negative as deposit inflows, by raising leverage, increase the likelihood of costly equity issuance. Banks' inabi...
-
作者：van Binsbergen, Jules; Hua, Sophia; Peeters, Jonas; Wachter, Jessica
作者单位：University of Pennsylvania; National Bureau of Economic Research; Centre for Economic Policy Research - UK
摘要：Using international data, we quantify the magnitude of survivorship bias in U.S. equity market performance, finding that it explains about one-third of the equity risk premium in the past century. We model the subjective crash belief of an investor who infers the crash risk in the United States by cross-learning from other countries. The U.S. crash probability shows a persistent and widening divergence from the implied global average. We attribute the upward bias in the measured equity premium...
-
作者：Chen, Jun; Ewens, Michael
作者单位：Columbia University
摘要：This paper examines venture capital's (VC) role in the geographic clustering of high-growth startups. We exploit a rule change that disproportionately impacted U.S. regions that historically lacked VC financing via a restriction of banks to invest in the asset class. A one-standard-deviation increase in VCs' exposure to the rule led to a 20% decline in fund size and a 10% decrease in the likelihood of raising a follow-on fund. Startups were not wholly cushioned: financing and valuations declin...
-
作者：Costain, James; Nuno, Galo; Thomas, Carlos
作者单位：Banco de Espana
摘要：We build an arbitrage-based model of the yield curves in a heterogeneous monetary union with sovereign default risk, which accounts for the asymmetric shifts in euro-area yields during the Covid-19 pandemic. We derive an affine term structure solution, and decompose yields into expectations, term premium, expected default loss, and credit risk premium components. In an extension, we endogenize the peripheral default probability, showing that it decreases with central bank bond holdings. Calibr...
-
作者：Flanagan, Thomas
作者单位：University System of Ohio; Ohio State University
摘要：Using a novel data set of realized syndicated loan cash flows and a risk-adjustment methodology adapted from the private equity literature, I provide a measure of risk-adjusted returns for bank loan cash flows. Banks, on average, generate 180 basis points in gross risk-adjusted returns and add $75 million of value annually to their loan portfolios. Banks earn higher returns when they lend to financially constrained borrowers, and the risk-adjusted performance of bank loan portfolios exhibits p...
