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作者：Adam, Tim R.; Burg, Valentin; Scheinert, Tobias; Streitz, Daniel
作者单位：Humboldt University of Berlin; Copenhagen Business School; Danish Finance Institute
摘要：We examine whether managerial overconfidence impacts the use of performance-pricing provisions in loan contracts (performance-sensitive debt [PSD]). Managers with biased views may issue PSD because they consider this form of debt to be mispriced. Our evidence shows that overconfident managers are more likely to issue rate-increasing PSD than regular debt. They choose PSD with steeper performance-pricing schedules than those chosen by rational managers. We reject the possibility that overconfid...
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作者：Piatti, Ilaria; Trojani, Fabio
作者单位：University of Oxford; University of Geneva; University of Geneva
摘要：Asymptotic tests over-reject the null of no predictability in present-value models. We develop a nonparametric testing approach in state-space models, implying reliable finite sample inference under weak assumptions on price-dividend ratio and dividend shocks. We find sharp evidence of return predictability in postwar U.S. data but less consistent evidence of dividend predictability, which is significant only using cash-flow proxies reflecting information from mergers and acquisitions. These f...
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作者：Simchi-Levi, David
作者单位：Massachusetts Institute of Technology (MIT); Massachusetts Institute of Technology (MIT)
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作者：Weingarten, Evan; Bhatia, Sudeep; Mellers, Barbara
作者单位：University of California System; University of California San Diego; University of Pennsylvania
摘要：It is well known that goals serve as reference points, and their influence on pleasure can be understood with prospect theory's value function. We examine how people feel about their progress on two goals (i.e., academics and fitness). What happens when they achieve one goal but fail to reach another? In four studies, we test the assumptions needed to explain hedonic reactions to progress along two goals. Loss aversion and diminishing sensitivity hold on each variable separately. However, we f...
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作者：Dou, Yiwei; Wong, M. H. Franco; Xin, Baohua
作者单位：New York University; University of Toronto
摘要：We test for changes in investment efficiency around a shock to financial reporting quality-the adoption of SFAS No. 123R, which requires that employee stock option (ESO) costs be recognized rather than disclosed at fair value. We predict and find a reduction in underinvestment for firms heavily affected by the new standard, and these firms exhibit a decrease in the bid-ask spread and an increase in new capital raised in the post-SFAS No. 123R period. The reduction in underinvestment is more pr...
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作者：Chordia, Tarun; Hu, Jianfeng; Subrahmanyam, Avanidhar; Tong, Qing
作者单位：Emory University; Singapore Management University; Nanjing University; University of California System; University of California Los Angeles
摘要：We propose that the volatility of order flow is a proxy for costs of information asymmetry, as order flow volatility varies positively with parameters that also influence adverse selection costs of trading. Empirically, order flow volatility is significantly higher prior to earnings or merger announcements when information asymmetry is likely to be elevated. Levels of and shocks to order flow volatility are positively and significantly correlated with existing illiquidity proxies, and strongly...
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作者：Wu, Jianqing (Fisher); Tawarmalani, Mohit; Kannan, Karthik N.
作者单位：University of Washington; University of Washington Seattle; Purdue University System; Purdue University
摘要：We study the pricing of cardinality bundles, where firms set prices that depend only on the size of the purchased bundle, a practice that is increasingly being adopted by industry. The model we study, where consumer choices are discrete, was originally proposed by Hitt and Chen [Hitt L, Chen P (2005) Bundling with customer self-selection: A simple approach to bundling low-marginal-cost goods. Management Sci. 51 (10):1481-1493], and it requires that consumers' preferences obey the Spence-Mirrle...
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作者：Azmat, Ghazala; Bagues, Manuel; Cabrales, Antonio; Iriberri, Nagore
作者单位：Aalto University; University of London; University College London; Basque Foundation for Science; University of Basque Country
摘要：This paper studies the effect of providing feedback to college students on their position in the grade distribution by using a natural field experiment. This information was updated every six months during a three-year period. We find that greater grades transparency decreases educational performance, as measured by the number of examinations passed and grade point average (GPA). However, self-reported satisfaction, as measured by surveys conducted after feedback is provided but before student...
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作者：Fan, Yun; Thomas, Wayne B.; Yu, Xiaoou
作者单位：University of Texas System; University of Texas Arlington; University of Oklahoma System; University of Oklahoma - Norman; Xiamen University
摘要：This study examines whether firms with private loan contracts that contain debt covenants based on earnings before interest, taxes, depreciation, and amortization (EBITDA) are more likely to misclassify core expenses as special items (i.e., classification shift). Misclassifying core expenses as income-decreasing special items allows the firm to increase EBITDA and thereby potentially avoid debt covenant violations. Consistent with our expectation, firms misclassify core expenses as special ite...
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作者：Liu, Liqun; Neilson, William S.
作者单位：Texas A&M University System; Texas A&M University College Station; University of Tennessee System; University of Tennessee Knoxville
摘要：This paper extends the three main approaches to comparative risk aversion-the risk premium approach and the probability premium approach of Pratt (1964) [Risk aversion in the small and in the large. Econometrica 32(1-2):122-136] and the comparative statics approach of Jindapon and Neilson (2007) [Higher-order generalizations of Arrow-Pratt and Ross risk aversion: A comparative statics approach. J. Econom. Theory 136(1):719-728]-to study comparative nth-degree risk aversion. These extensions ca...
