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作者：Bakke, Tor-Erik; Whited, Toni M.
作者单位：University of Oklahoma System; University of Oklahoma - Norman; University of Rochester
摘要：Threshold events are discrete events triggered when an observable continuous variable passes a known threshold. We demonstrate how to use threshold events as identification strategies by revisiting the evidence in Rauh (2006, Investment and financing constraints: Evidence from the funding of corporate pension plans, Journal of Finance 61, 3371) that mandatory pension contributions cause investment declines. Rauhs result stems from heavily underfunded firms that constitute a small fraction of t...
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作者：Erel, Isil; Liao, Rose C.; Weisbach, Michael S.
作者单位：University System of Ohio; Ohio University; Rutgers University System; Rutgers University New Brunswick; Rutgers University Newark; Rutgers University System; Rutgers University New Brunswick
摘要：The vast majority of cross-border mergers involve private firms outside of the United States. We analyze a sample of 56,978 cross-border mergers between 1990 and 2007. We find that geography, the quality of accounting disclosure, and bilateral trade increase the likelihood of mergers between two countries. Valuation appears to play a role in motivating mergers: firms in countries whose stock market has increased in value, whose currency has recently appreciated, and that have a relatively high...
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作者：Schnabl, Philipp
作者单位：New York University
摘要：I exploit the 1998 Russian default as a negative liquidity shock to international banks and analyze its transmission to Peru. I find that after the shock international banks reduce bank-to-bank lending to Peruvian banks and Peruvian banks reduce lending to Peruvian firms. The effect is strongest for domestically owned banks that borrow internationally, intermediate for foreign-owned banks, and weakest for locally funded banks. I control for credit demand by examining firms that borrow from sev...
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作者：Cohen, Lauren; Malloy, Christopher; Pomorski, Lukasz
作者单位：Harvard University; National Bureau of Economic Research; University of Toronto
摘要：Exploiting the fact that insiders trade for a variety of reasons, we show that there is predictable, identifiable routine insider trading that is not informative about firms futures. A portfolio strategy that focuses solely on the remaining opportunistic traders yields value-weighted abnormal returns of 82 basis points per month, while abnormal returns associated with routine traders are essentially zero. The most informed opportunistic traders are local, nonexecutive insiders from geographica...
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作者：Thanassoulis, John
作者单位：University of Oxford
摘要：This paper studies the default risk of banks generated by investment and remuneration pressures. Competing banks prefer to pay their banking staff in bonuses and not in fixed wages as risk sharing on the remuneration bill is valuable. Competition for bankers generates a negative externality, driving up market levels of banker remuneration and hence rival banks default risk. Optimal financial regulation involves an appropriately structured limit on the proportion of the balance sheet used for b...
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作者：Guthrie, Katherine; Sokolowsky, Jan; Wan, Kam-Ming
作者单位：William & Mary; University of Michigan System; University of Michigan; Hong Kong Polytechnic University
摘要：Chhaochharia and Grinstein estimate that CEO pay decreases 17% more in firms that were not compliant with the recent NYSE/Nasdaq board independence requirement than in firms that were compliant. We document that 74% of this magnitude is attributable to two outliers of 865 sample firms. In addition, we find that the compensation committee independence requirement increases CEO total pay, particularly in the presence of effective shareholder monitoring. Our evidence casts doubt on the effectiven...
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作者：Edmans, Alex; Goldstein, Itay; Jiang, Wei
作者单位：University of Pennsylvania; National Bureau of Economic Research; Columbia University
摘要：Using mutual fund redemptions as an instrument for price changes, we identify a strong effect of market prices on takeover activity (the trigger effect). An interquartile decrease in valuation leads to a seven percentage point increase in acquisition likelihood, relative to a 6% unconditional takeover probability. Instrumentation addresses the fact that prices are endogenous and increase in anticipation of a takeover (the anticipation effect). Our results overturn prior literature that finds a...
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作者：Morellec, Erwan; Nikolov, Boris; Schuerhoff, Norman
作者单位：Swiss Finance Institute (SFI); Swiss Federal Institutes of Technology Domain; Ecole Polytechnique Federale de Lausanne; University of Rochester; Swiss Finance Institute (SFI); University of Lausanne
摘要：We develop a dynamic tradeoff model to examine the importance of managershareholder conflicts in capital structure choice. In the model, firms face taxation, refinancing costs, and liquidation costs. Managers own a fraction of the firms equity, capture part of the free cash flow to equity as private benefits, and have control over financing decisions. Using data on leverage choices and the models predictions for different statistical moments of leverage, we find that agency costs of 1.5% of eq...
