-
作者：Chen, Jie; Su, Xunhua; Tian, Xuan; Xu, Bin; Zuo, Luo
作者单位：University of Leeds; Norwegian School of Economics (NHH); Tsinghua University; University of Reading; National University of Singapore
摘要：We examine whether major corporate customers can deter misconduct among their suppliers. Our findings indicate that firms with concentrated customer bases are less likely to commit misconduct and face lower penalties in equilibrium. We also observe a significant decline in supplier misconduct following the establishment of a major customer relationship. Furthermore, the deterrent effect of major customers is more pronounced when customer pressure to reduce supplier misconduct risk is higher. A...
-
作者：Hanlon, Michelle; Shroff, Nemit; Yoon, Rachel
作者单位：Massachusetts Institute of Technology (MIT); Boston University
摘要：This paper examines whether corporate tax cuts alter product-market competition by differentially affecting firms with high versus low tax burdens. Tax cuts increase after-tax cash flows for profitable firms but provide little immediate benefit to loss-making firms. We study the 1986 Tax Reform Act, which reduced the top corporate tax rate by 12 percentage points, and examine route-level price and quantity data from the U.S. airline industry. We find that in response to the Act, profitable air...
-
作者：Huber, Stefan J.; Watts, Edward M.; Zhu, Christina
作者单位：University of Pennsylvania; Yale University; European Corporate Governance Institute
摘要：We study the informational value of trading networks in over-the-counter (OTC) markets. Using detailed transaction-level data from the corporate bond market, we show that investors with larger dealer networks make superior trading decisions before changes in credit fundamentals, resulting in better risk-adjusted performance. We trace these investors' superior trading decisions to trading connections where dealers are most likely to have access to novel credit-relevant information, supporting t...
-
作者：Duguay, Raphael; Li, Chenchen; Zhang, Frank
作者单位：Yale University
摘要：This paper studies how mandatory greenhouse gas disclosure affects new business formation. We find a significant increase in business entry following the implementation of the Greenhouse Gas Reporting Program in affected industries, relative to unaffected controls. We propose two channels. First, through a production channel, disclosure pressures incumbent firms to reduce emissions by scaling back production or reallocating resources toward cleaner technologies, weakening incumbents' competiti...
-
作者：deHaan, Ed; Huang, Allen H.; Kannan, Srijith; Qiu, Lu
作者单位：Stanford University; Hong Kong University of Science & Technology; Southwestern University of Finance & Economics - China
摘要：We analyze over 27,000 social media livestreams by Chinese mutual funds to investigate whether they achieve regulators' goal of improving retail investment decisions. Our findings indicate that livestreams generate significant inflows, often within minutes of their start times. Yet rather than educating investors, livestreams amplify return-chasing behavior and predict sharp declines in fund performance. Investors who buy in response to livestreams would earn higher returns by holding index fu...
-
作者：Gallo, Lindsey A.; Jin, Hengda; Sridharan, Suhas A.
作者单位：University of Michigan System; University of Michigan; Texas A&M University System; Texas A&M University College Station; Mays Business School; Emory University
摘要：This paper examines time-series variation in the relationship between aggregate earnings and GDP (AEG). Using quarterly data from 1979-2019, we document that aggregate earnings are positively associated with future real GDP after 2000 but not before. We further show that this variation does not result from an association between aggregate earnings and the corporate profits component of GDP. Instead, we discover that aggregate special items-not core earnings-drive the post-2000 AEG by conveying...
-
作者：Bertomeu, Jeremy; Lin, Yupeng; Liu, Yibin; Ni, Zhenghui
作者单位：Washington University (WUSTL); National University of Singapore; Renmin University of China
摘要：This paper explores how the emergence of generative artificial intelligence is reshaping the information environment in capital markets. Leveraging an unexpected ban on ChatGPT in Italy, we examine its impact on the information processing capabilities of market participants. We employ metrics for AI-generated text detection to show that the ban coincides with decreased AI usage by domestic financial analysts and fewer earnings forecasts issued relative to foreign analysts covering the same fir...
-
作者：Cheng, Qiang; Lin, Pengkai; Zhao, Yue
作者单位：Singapore Management University
摘要：In this paper, we use ChatGPT outages to provide early evidence on whether investors rely on generative artificial intelligence (GenAI) to perform professional tasks and the associated impact on stock price informativeness. We document a significant decline in stock trading volume during ChatGPT outages. The effect is stronger for firms with corporate news released immediately before or during the outages and for firms with higher ownership held by transient institutional investors. We then do...
-
作者：Ryan, Stephen G.
作者单位：New York University
摘要：Basu, Roychowdhury, and Sinha (BRS, this issue) examine effects of U.S. bank regulators' provision of guidance regarding the incorporation of the current expected credit loss (CECL) approach in capital regulation two and a half years after the issuance of ASU 2016-13. BRS argue and provide evidence that, for CECL-adopting banks and their borrowers in syndicated corporate loans, this lagged provision of guidance adversely affected (1) the amounts and interest rates for more affected term loan A...
-
作者：Cuny, Christine; Li, Ken; Nakhmurina, Anya; Watts, Edward M.
作者单位：New York University; McMaster University; Yale University
摘要：This paper examines which municipal disclosures provide informational value to investors. Using the entire universe of post-issuance financial and event disclosures from 2009 to 2022, we find that most municipal bonds do not trade in the weeks following a disclosure. However, some disclosures do provide enough new information to increase trading. Investors trade more on credit-relevant disclosures, such as adverse credit event disclosures, and less on required annual financial statements. Trad...
