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作者：Kaviani, Mahsa; Maleki, Hosein; Savor, Pavel
作者单位：University of Delaware; Rutgers University System; Rutgers University New Brunswick; DePaul University
摘要：Using close elections as an empirical setting, this paper examines the drivers and consequences of politically motivated lending by U.S. banks, with a special focus on resulting benefits. We first show that firms with ties to members of Congress receive more favorable loan terms, despite no observable improvements in performance or default risk. The effect is especially pronounced among banks facing regulatory challenges - such as FDIC enforcement actions, corporate misconduct investigations, ...
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作者：Frame, W. Scott; Gerardi, Kristopher; Mayer, Erik J.; Xu, Billy Y.; Zhao, Lawrence Chengzhi
作者单位：Federal Reserve System - USA; Federal Reserve Bank - Atlanta; University of Wisconsin System; University of Wisconsin Madison; University of Rochester; Texas Tech University System; Texas Tech University
摘要：This study examines the effect of Department of Justice lawsuits in the 2010s against large lenders for alleged fraud in the Federal Housing Administration (FHA) mortgage insurance program. The suits led to over $5 billion in settlements and caused targeted banks and their peers to precipitously exit the FHA market. Difference-in-differences and triple-differences tests exploiting geographic variation in exposure to exiting banks show an 18% reduction in FHA lending in heavily exposed areas. T...
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作者：Huang, Teng; Sacchetto, Stefano
作者单位：NEOMA Business School; Universidade Nova de Lisboa
摘要：We study the rationale behind firms' investment in risky financial assets by formulating and estimating a dynamic model in which firms allocate their precautionary savings to both safe and risky securities. In equilibrium, risky financial asset holdings are positively related to the sensitivity of a firm's financing deficit to the risky asset returns-the financing deficit beta. Using a comprehensive sample of US corporate financial asset holdings, we find evidence of a positive correlation bet...
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作者：Feng, Felix; Nohel, Tom; Tian, Xuan; Wang, Wenyu; Wu, Yufeng
作者单位：University System of Georgia; University of Georgia; Loyola University Chicago; Peking University; Indiana University System; IU Kelley School of Business; Indiana University Bloomington; University System of Ohio; Ohio State University
摘要：Special Purpose Acquisition Companies (SPACs) took Wall Street by storm in 2020/2021 and continue to play a significant role in today's capital markets. Estimating a structural model using a hand-collected comprehensive dataset, we find that SPACs add value by identifying and bringing high-potential firms to public markets, though contractual frictions skew the distribution of spoils away from SPAC shareholders and towards sponsors and target owners. Nonetheless, shareholder excess returns are...
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作者：Sammon, Marco; Shim, John J.
作者单位：Harvard University; University of Notre Dame
摘要：Value-weighted indexes must rebalance in response to stock market composition changes, e.g., issuance, buybacks, and IPOs. In doing so, existing index funds implicitly engage in market timing. Index funds' long-short rebalancing portfolios have an annualized return of 4.61% and load negatively on value and profitability factors. We estimate these trades impose a 46-69 bps annual index-level performance drag. We explore alternative value-weighted indexes that rebalance less and delay responding...
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作者：Barahona, Ricardo; Cassella, Stefano; Jansen, Kristy A. E.; Pezone, Vincenzo
作者单位：Banco de Espana; Tilburg University; University of Southern California; Centre for Economic Policy Research - UK; European Central Bank; De Nederlandsche Bank NV; Luiss Guido Carli University
摘要：We investigate whether teams exhibit increased or reduced overreaction in expectation formation relative to individuals. Using preregistered randomized experiments that directly elicit expectations about future returns, we find that teams display lower belief overreaction to recent investment performance. A quantitative decomposition shows that this team effect stems primarily from a self-selection'' mechanism, whereby the most biased team member chooses to influence the team decision less. An...
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作者：Chen, Yuchen; Li, Xuelin; Thakor, Richard T.; Ward, Colin
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; Columbia University; University of Minnesota System; University of Minnesota Twin Cities; University of Alberta
摘要：We assess how labor mobility affects intangible investment in a dynamic agency model featuring both knowledge appropriation and moral hazard. We argue that restricting worker mobility, while reducing employees' appropriation of firm intangible capital, can hurt their incentives to exert effort. Our calibration to U.S. data targets responses of employee turnover and firms' intangible investment to variations in workers' outside option values, identified through exogenous shocks to non-compete e...
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作者：Axelson, Ulf; Makarov, Igor
作者单位：University of London; London School Economics & Political Science
摘要：Entrepreneurs typically seek financing in decentralized markets, where they approach investors sequentially. We develop a model of sequential capital markets with privately informed investors. The sequential market creates a dynamic adverse selection externality that leads to overinvestment and excessive rents to intermediaries, even as the number of competing investors becomes arbitrary large. The resulting rents lead to excessive entry of investors and insufficient entry of entrepreneurs. Mo...
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作者：Liu, Haoyang; Palmer, Christopher
作者单位：Federal Reserve System - USA; Federal Reserve Bank - Dallas; Massachusetts Institute of Technology (MIT); National Bureau of Economic Research
摘要：We document implicit extrapolation in investment decision-making that exceeds the extrapolation inferable from stated expectations. Locally experienced returns predict individual real-estate investment decisions even conditional on an investor's forecasted home-price growth and risk aversion. Moreover, estimates of this experience effect on investment are larger than implied by the combined effect of past returns on stated expectations and stated expectations on investment. We demonstrate that...
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作者：Fisman, Raymond; Ghosh, Pulak; Sarkar, Arkodipta; Zhang, Jian
作者单位：Boston University; Indian Institute of Management (IIM System); Indian Institute of Management Bangalore; National University of Singapore; University of Hong Kong
摘要：We study whether access to local pollution information causes investors to make greener portfolio allocations, exploiting the rollout of air quality monitoring stations in India. Using a triple-differences framework on the trading records of 19 million investors, we show that retail investors' holdings in brown stocks become more negatively related to local pollution after a nearby station appears. This effect is more pronounced on alert dates when air quality is reported to be harmful. The ef...
