Olivier Sirello and Miklos Vari ♦ Using the re-issuance policy of the French Treasury, we show that issuances of long-term debt (bonds) increase yields four times as much as issuances of short-term debt (bills). Surprisingly, the modest price impact of…
Alvin Chen ♦ This paper studies buybacks with two informed parties: a manager and an outside speculator. Buybacks introduce two countervailing forces. A competition effect reduces speculator profits when buybacks compete against speculative trades. A dispersion effect increases speculator profits:…
Jinoug Jeung ♦ Exploiting an exogenous increase in public awareness of banks’ lending to the gun industry, this paper documents significant deposit outflows from gun lenders. These outflows are stronger in Democratic-leaning markets and for Republican-leaning lenders. In contrast, anti-gun…
Albert Banal-Estanol, Gyöngyi Lóránth, and David Pothier ♦ We study how resolution regimes affect investment in banking groups with subsidiaries of varying financial strength. Centralized regimes that preserve the group’s structure enable ex post support for weaker units but may…
Jie Chen, Xunhua Su, Xuan Tian, Bin Xu, Xiaoyu Zhang ♦ We examine the efficacy of product market discipline as a deterrent to corporate misconduct. Firms that are subject to greater competitive threats in the product market are less likely…
Wen Chen, Bo Hu, and Yajun Wang ♦ We study how asset managers’ benchmarking affects market efficiency under two learning technologies: separative and integrative. With integrative learning, investors process portfolio-wide signals, optimizing information allocation across assets instead of focusing on individual…
