Mehmet Ihsan Canayaz ♦ China’s Belt and Road Initiative (BRI) aims to create economic corridors encompassing two-thirds of the world’s population and 40% of global GDP. Using the inauguration of a railway tunnel between Europe and Asia as a quasi-natural…
Todd A. Gormley and Manish Jha ♦ Institutional investors conduct more governance research and are less likely to follow proxy advisor vote recommendations when a company’s bonds comprise a larger share of their assets. These findings are driven by bond…
Kyoo il Kim, Suyong Song, and Jiawei (Brooke) Wang ♦ We study the classical relationship between a firm’s investment and Tobin’s q, for which an unobserved persistent shock is an important factor of investment decision. In our setting, besides the…
Nils Lohmeier and Hannes Mohrschladt ♦ We propose and test a catering theory of earnings guidance. As predicted by our model, managers cater to reference point dependent investor preferences by issuing excessively optimistic earnings forecasts if their investors have experienced…
Leming Lin ♦ This paper studies the flow of payout funds in the financial system. Using various data sources and empirical strategies, it provides evidence that a significant portion of payouts enters the banking sector as deposits, which are then…
Amit Goyal, Narasimhan Jegadeesh, and Yanbin Wu ♦ The closing auction crosses about 10% of daily trades and serves as a potentially attractive alternative to trading in the continuous market. We estimate the price impact for order execution in the…
