-
作者：Yoo, G-Song; Tan, Hun-Tong
作者单位：Korea University; Nanyang Technological University
摘要：We examine how investors' investment judgments are jointly affected by two important linguistic features that vary considerably across firms' risk factor disclosures: namely, causal focus-the extent to which managers' disclosures focus on the causes versus consequences of risk events-and specificity, which refers to specific references to names of objects and quantitative values. Results of controlled experiments show that, when the disclosure focus is on risk causes, greater specificity incre...
-
作者：Iancu, Dan Andrei; Park, Jae-Hyuck; Plambeck, Erica L.
作者单位：Stanford University; New Jersey Institute of Technology
摘要：This paper examines a grocery retailer's management of a premade food product. The retailer's goal is to maximize a weighted sum of direct profit and customer welfare. Multiple items of the product are produced in batches and immediately displayed for sale. Considering that each item's quality decreases while it sits on the shelf, the retailer chooses the shelf life, whether to issue items in first-in-first-out (FIFO) or last-in-first-out (LIFO) order, whether to timestamp items, and how to pr...
-
作者：Marx, Matt; Wang, Qian; Yimfor, Emmanuel
作者单位：Cornell University; Columbia University; National Bureau of Economic Research
摘要：How do venture capital investors react to social movements, including those that relate to historical underrepresentation in funding? We use image and name algorithms combined with clerical review to classify race for 150,000 founders and 30,000 investors. These data allow us to assess the impact of George Floyd's murder on VC funding of Black entrepreneurs and identify which VCs were most responsive. Although VCs responded swiftly, investment in Black-founded startups reverted to prior levels...
-
作者：Wang, Rex; Verwijmeren, Patrick
作者单位：Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam
摘要：We study whether individuals form extrapolative beliefs across different tasks. In line with cross-extrapolation, equity analysts who experience bad news from some of their coverage firms become overly pessimistic about other firms in their coverage. This leads to disagreement among analysts and has implications for the stock market, as we observe effects on trading volume, return volatility, and pricing. Our findings highlight the relevance of non-domain-specific belief models.
-
作者：Larocque, Stephannie A.; Yu, Yong; Zhao, Wuyang
作者单位：University of Notre Dame; University of Texas System; University of Texas Austin; McGill University
摘要：We examine the relation between individual analysts' exclusions that result in lower street earnings per share (EPS) forecasts than their EPS forecasts based on generally accepted accounting principles (i.e., EPS-decreasing exclusions) and the optimism of their target price forecasts. We document that analysts' EPS-decreasing exclusions from their annual forecasts mainly relate to positive nonrecurring items already reported by the firm. We find that analysts' EPS-decreasing exclusions are ass...
-
作者：Lin, Chen; Lu, Fangzhou; Michaely, Roni; Qin, Shihua
作者单位：University of Hong Kong; European Corporate Governance Institute; Lingnan University
摘要：The structure of a special purpose acquisition company (SPAC) generates significant information asymmetry for public investors and provides a special role for its sponsors. Leveraging the unique characteristics of SPACs, this study reexamines the debate over the role of managerial network centrality in affecting M&A outcomes, namely, whether network centrality allows for more private benefits or rather adds value to firms and helps reduce information asymmetry. Specifically, we show that spons...
-
作者：Chan, Timothy C. Y.; Chen, Ningyuan; Fernandes, Craig
作者单位：University of Toronto; University of Toronto
摘要：Superstar markets, where a small portion of individuals earn disproportionately high incomes, are common in fields like entrepreneurship, sports, and entertainment. Participants in these markets face significant income uncertainty, which can deter entry or prompt early exit. To address this difficulty, we propose income pools: contracts where individuals agree to share a portion of future earnings with pool members if a specific salary milestone is achieved. To date, hundreds of income pool co...
-
作者：Gulen, Huseyin; Jens, Candace E.; Page, T. Beau
作者单位：Purdue University System; Purdue University; Syracuse University
摘要：Answering causal questions with generalizable results is challenging. Estimators requiring pseudorandomization provide estimates with no bias (i.e., strong internal validity) but limited generalizability (i.e., weak external validity). Theoretically, causal forest, a nonparametric, machine learning-based matching estimator, can provide low-to-no-bias, generalizable estimates even when treatment is endogenous. We empirically compare the performance of ordinary least squares (OLS), regression di...
-
作者：Hellmann, Thomas; Mostipan, Ilona; Vulkan, Nir
作者单位：University of Oxford; Analysis Group Inc.
摘要：Start-ups with female founders typically raise less money than their male counterparts. Prior literature explores investor demand and finds evidence of assortative matching, where investors prefer to invest in entrepreneurs of their own gender. In the context of equity crowdfunding, we examine the supply side of the gender funding gap, asking how female and male founders anticipate different investor demand. We develop an assortative matching theory that generates four benchmark predictions, n...
-
作者：Wu, Zhiyan; Cao, Wenjiao
作者单位：Zhejiang University; Erasmus University Rotterdam; Erasmus University Rotterdam - Excl Erasmus MC
摘要：Using a regression discontinuity design in a sample of U.S. federal special elections, we investigate how donor firms' political wins impact the adaptive responses of their product-market peers in their political activities, with a particular focus on the appointment of politicians to their boardrooms. By analyzing closely contested special elections, we find that when donor firms had donated to a candidate who narrowly won a special election, their peer firms were 41% more likely to appoint p...
