| 1. |
- Adams, RB, et al.
(författare)
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Is Pay a Matter of Values?
- 2012
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Ingår i: International Review of Finance. - : Wiley. - 1369-412X. ; 12:2, s. 133-173
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Tidskriftsartikel (refereegranskat)abstract
- Public outrage over executive compensation reached an all-time high during the financial crisis. Around the world, many argued that CEOs and boards were immoral in setting their pay and pressured governments to impose restrictions on executive pay. Using a unique sample of data on human values for CEOs, we show that CEOs and directors have different values than general members of the population. CEOs and directors place more emphasis on power and achievement values than members of the population, and they emphasize self-direction values more. However, values appear to have little explanatory power for pay, in contrast to economic variables. While some CEOs may be unethical in setting their pay, our results suggest that pay is not a matter of values on average.
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| 2. |
- Adelino, Manuel, et al.
(författare)
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Trade Credit and the Transmission of Unconventional Monetary Policy
- 2024
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- We show that trade credit in production networks is important for the transmission of unconventional monetary policy. We find that firms with bonds eligible for purchase under the European Central Bank’s Corporate Sector Purchase Program act as financial intermediaries and extend more trade credit to their customers. The increase in trade credit flows is more pronounced from core countries to periphery countries and towards financially constrained customers. Customers increase investment and employment in response to the additional financing, while suppliers with eligible bonds increase their customer base, potentially favoring upstream industry concentration. Our findings suggest that the trade credit channel of monetary policy produces heterogeneous effects on regions, industries, and firms.
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| 3. |
- Adelino, Manuel, et al.
(författare)
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Trade Credit and the Transmission of Unconventional Monetary Policy
- 2023
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Ingår i: Review of Financial Studies. - : Oxford University Press (OUP): Policy F - Oxford Open Option D. - 1465-7368 .- 0893-9454. ; 36:2, s. 775-813
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Tidskriftsartikel (refereegranskat)abstract
- We show that production networks are important for the transmission of unconventional monetary policy. Firms with bonds eligible for purchase under the European Central Bank's Corporate Sector Purchase Program act as financial intermediaries by extending additional trade credit to their customers. The increase in trade credit is pronounced from core countries to periphery countries and for financially constrained customers. Customers then increase investment and employment in response to the increased trade financing, whereas suppliers expand their customer base, contributing to upstream industry concentration. Our findings suggest that trade credit redistributes the effects of monetary policy across regions and firms.
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| 4. |
- Baghai, Ramin, et al.
(författare)
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Liability Structure and Risk-Taking: Evidence from the Money Market Fund Industry
- 2018
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- We exploit a change in regulation of money market funds to investigate how the structure of liabilities impacts financial intermediaries' asset holdings. We show that following a change in regulation, which has made prime money market funds' liabilities less money-like, safer funds exited the industry. The remaining funds have increased the riskiness of their portfolios, possibly in response to an increase in the sensitivity of flows to performance. As a result, issuers with lower risk of default have less access to funding from US money market funds. To the best of our knowledge, our paper provides the first evidence in support of theories highlighting that the characteristics of financial intermediaries' assets and liabilities are jointly determined.
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| 5. |
- Burkart, Mike, et al.
(författare)
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What you sell is what you lend? Explaining trade credit contracts
- 2011
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Ingår i: Review of Financial Studies. - : Oxford University Press. - 0893-9454 .- 1465-7368. ; 24:4, s. 1261-1298
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Tidskriftsartikel (refereegranskat)abstract
- We relate trade credit to product characteristics and aspects of bank–firm relationships and document three main empirical regularities. First, the use of trade credit is associated with the nature of the transacted good. In particular, suppliers of differentiated products and services have larger accounts receivable than suppliers of standardized goods and firms buying more services receive cheaper trade credit for longer periods. Second, firms receiving trade credit secure financing from relatively uninformed banks. Third, a majority of the firms in our sample appear to receive trade credit at low cost. Additionally, firms that are more creditworthy and have some buyer market power receive larger early payment discounts.
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| 6. |
- Burlon, Lorenzo, et al.
(författare)
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Is there a zero lower bound? The effects of negative policy rates on banks and firms
- 2022
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Ingår i: Journal of Financial Economics. - : Elsevier. - 1879-2774 .- 0304-405X. ; 144:3, s. 885-907
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Tidskriftsartikel (refereegranskat)abstract
- Exploiting confidential data from the euro area, we show that sound banks pass negative rates on to their corporate depositors and that pass-through is not impaired when policy rates move into negative territory. We do not observe a contraction in deposits, reflecting a general increase in corporate liquidity during the sample period. When their banks charge negative rates on deposits, firms with ex ante high liquidity invest more than comparable firms that are not charged negative rates and increase their liquid holdings less. These results challenge the common view that conventional monetary policy becomes ineffective at the zero lower bound. © 2021 The Authors
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| 7. |
- Favara, Giovanni, et al.
(författare)
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Forced Asset Sales and the Concentration of Outstanding Debt : Evidence from the Mortgage Market
- 2015
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Ingår i: CEPR Discussion Paper Series Centre for Economic Policy Research. - : Centre for Economic Policy Research (CEPR). - 0265-8003.
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- We provide evidence that lenders differ in their ex post incentives to internalize price-default externalities associated with the liquidation of collateralized debt. Using the mortgage market as a laboratory, we conjecture that lenders with a large share of outstanding mortgages on their balance sheets internalize the negative spillovers associated with the liquidation of defaulting mortgages and are thus less inclined to foreclose. We find that zip codes with higher concentration of outstanding mortgages experience fewer foreclosures, more renegotiations of delinquent mortgages, and smaller house prices declines. These results are not driven by prior local economic conditions, mortgage securitization or unobservable lender characteristics.
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| 8. |
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| 9. |
- Franzoni, Francesco A., et al.
(författare)
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Supply Chain Shortages, Large Firms' Market Power, and Inflation
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- We suggest an equilibrium mechanism for the widely debated argument that “greedflation” has fostered widespread price hikes. We construct firm and industry-level measures of supply chain backlogs and delivery delays and provide evidence that supply chain shortages lead to a decrease in competition at the industry level. We show that “star” firms acquire market shares and increase their markups and profitability relative to the smaller firms in the industry. We also show that the large increase in supply chain backlogs during the COVID-19 pandemic can help explain about 19% of the US inflation in industries with more asymmetric firm size distribution, where supply chain shortages are more likely to benefit large firms at the expense of smaller firms. Economic magnitudes are comparable in the international sample.
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| 10. |
- Gao, Janet, et al.
(författare)
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Uncertainty, access to debt, and firm precautionary behavior
- 2021
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Ingår i: Journal of Financial Economics. - : Elsevier. - 1879-2774 .- 0304-405X. ; 141:2, s. 436-453
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Tidskriftsartikel (refereegranskat)abstract
- Better access to debt markets mitigates the effects of uncertainty on corporate policies. We establish this result using the staggered introduction of anti-recharacterization laws in US states. These laws enhanced firms’ ability to borrow by strengthening creditors’ rights to repossess collateral pledged in special purpose vehicles. After the passage of the laws, firms that face more uncertainty hoard less cash and increase payouts, leverage, and investment in intangible assets. Our findings suggest that better access to debt markets shields firms from fluctuations in uncertainty and decreases firms’ precautionary behavior, contributing to the deployment of cash and other internal resources to investment in intangible capital. © 2021
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