-
作者：Chircop, Justin; Fabrizi, Michele; Malaspina, Patrizia; Parbonetti, Antonio
作者单位：Lancaster University; University of Padua
摘要：Mafia firms introduce distortions in the markets in which they operate, increasing the cost of doing business for peer firms. We investigate whether peers respond by increasing their tax avoidance and thus increasing funds available to compete with the Mafia firms. Using a sample of Italian anti-Mafia police actions that resulted in the removal of Mafia firms and a difference-in-differences approach, we find that peers reduce their tax avoidance following these actions. We further show that, f...
-
作者：Mahieux, Lucas; Sapra, Haresh; Zhang, Gaoqing
作者单位：Tilburg University; University of Chicago; University of Minnesota System; University of Minnesota Twin Cities
摘要：We investigate how provisioning models interact with bank regulation to affect banks' risk-taking behavior. We study an accuracy versus timeliness trade-off between an incurred loss model (IL) and an expected loss model (EL) such as current expected credit loss model or International Financial Reporting Standards 9. Relative to IL, even though EL improves efficiency by prompting earlier corrective action in bad times, it induces banks to originate either safer or riskier loans. Trading off ex ...
-
作者：Chang, Wonjae; Dambra, Michael; Schonberger, Bryce; Suk, Inho
作者单位：City University of Hong Kong; State University of New York (SUNY) System; University at Buffalo, SUNY; University of Colorado System; University of Colorado Boulder; Korea University
摘要：Beginning in 2018, U.S. public firms were required to report the ratio of the chief executive officer's (CEO) compensation to their median employee's compensation in the annual proxy statement. Exploiting the staggered reporting of pay ratios, we find little evidence that total CEO compensation changes in response to pay ratio disclosure reform. However, we do find that boards significantly adjust the mix of compensation awarded by reducing the sensitivity of CEO pay to equity price changes, p...
-
作者：Geertsema, Paul; Lu, Helen
作者单位：University of Auckland
摘要：We use machine learning for relative valuation and peer firm selection. In out-of-sample tests, our machine learning models substantially outperform traditional models in valuation accuracy. This outperformance persists over time and holds across different types of firms. The valuations produced by machine learning models behave like fundamental values. Overvalued stocks decrease in price and undervalued stocks increase in price in the following month. Determinants of valuation multiples ident...
-
作者：Chaigneau, Pierre; Sahuguet, Nicolas
作者单位：Queens University - Canada; Universite de Montreal; HEC Montreal
摘要：A firm that must decide whether to retain or terminate a manager can rely on several sources of information to assess managerial ability. When it relies on a performance signal and monitoring, we show that a more informative signal can surprisingly increase the value of monitoring. Then, signal precision and monitoring are complements. This happens if a more precise information system makes some signals more negative indicators of managerial ability that still do not trigger termination. When ...
-
作者：Rajgopal, Shivaram; Tantri, Prasanna
作者单位：Columbia University; Indian School of Business (ISB)
摘要：This study investigates the implementation of a Government of India mandate that requires firms to spend at least 2% of their profits on corporate social responsibility (CSR). The results show that qualifying firms that voluntarily engaged in CSR before the mandate reduce their CSR spending afterward. Despite increasing advertisement expenditure likely to offset the lost signaling value of voluntary CSR, stock prices and operating performance of former voluntary CSR spenders who qualify under ...
-
作者：Bonetti, Pietro; Ormazabal, Gaizka
作者单位：University of Navarra; IESE Business School; University of Navarra; IESE Business School
摘要：This paper studies the economic consequences of certification of corporate governance practices. For identification, we exploit a recent cross-country initiative by a coalition of key institutions in Southeast Asia; the periodic publication of a Top List of companies in the region selected based on an independent assessment of corporate governance practices. Our results suggest that being included in the list induces an increase in foreign investment and changes in corporate governance practic...
-
作者：Dyck, Alexander; Lins, Karl, V; Roth, Lukas; Towner, Mitch; Wagner, Hannes F.
作者单位：University of Toronto; Utah System of Higher Education; University of Utah; University of Alberta; University of Arizona; Bocconi University
摘要：We conjecture that board renewal mechanisms-those substantive enough to renew the thinking of the board-are required before investors can address the mismatch between their preferences regarding environmental sustainability and what insiders at firms are actually doing. We identify the adoption of majority voting for directors and the introduction of a female director as two corporate governance mechanisms potentially strong enough to renew a board's thinking on sustainability. Using a sample ...
-
作者：Jiang, Xu; Xin, Baohua; Xiong, Yan
作者单位：Duke University; University of Toronto; Hong Kong University of Science & Technology
摘要：We study the real effects of certification to demonstrate the value of mandatory certification over and above mandatory disclosure in enhancing investment efficiency. In our model, a firm's manager selects a project to maximize the firm's short-term stock price, which is a function of her certification and disclosure decisions about the outcome of the project. Although the manager might be either forthcoming or strategic with regard to the disclosure of her private information, she can strateg...
-
作者：Bol, Jasmijn; Laviers, Lisa; Sandvik, Jason
作者单位：Tulane University; University of Arizona
摘要：Running a contest can help managers elicit creative ideas from employees by providing employees with incentives to develop and share ideas that will help the firm. Little is known, however, about how contest design affects the outcomes of subjectively evaluated creativity-based contests. We conduct an experiment to investigate the impact of two contest design choices, the job role of the contest's evaluator, and the number of prizes that participants compete for, on employee participation beha...
