Annual Conference

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Real Estate and Urban Economics, Senior Fellows/Fellows

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May 2019

Gravity Counterparties and Foreign Investment

Cristian BADARINZA, Tarun RAMADORAI, Chihiro SHIMIZU
We propose a new explanation for the persistence of gravity in international investment flows based on new facts about large cross-border commercial real-estate transactions. Buyers in these transactions preferentially match with counterparties from own or proximate countries; such affinity-based ma...
Keywords: gravity, Foreign investment, Commercial real estate, Investment frictions, trust, Matching, Cross-border flows
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Surveying Business Uncertainty

Steven J. DAVIS, Nicholas A. BLOOM, David E. ALTIG, Jose Maria BARRERO
We develop a new monthly panel survey of business executives and a new question design that elicits subjective probability distributions over own-firm outcomes at a one-year look-ahead horizon. Our Survey of Business Uncertainty (SBU) began in 2014 and now covers 1,500 firms drawn from all 50 states...
Keywords: Business Uncertainty, Subjective Forecast Distributions, Surveys
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Annual Conference

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Accounting

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May 2019

Security Analysts and Capital Market Anomalies

Frank Weikai LI, Li GUO, K.C. John WEI
We examine the value and efficiency of analyst recommendations through the lens of capital market anomalies. We find that analysts do not fully use the information in anomaly signals when making recommendations. Specifically, analysts tend to give more favorable consensus recommendations to stocks c...
Keywords: Analysts, Analyst recommendations, anomalies, mispricing, market efficiency
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Annual Conference

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Accounting

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May 2019

The Information Content of Cost Behavior Components

Nir YEHUDA, Lianghui WANG, Wan WONGSUNWAI
We examine the information content of cost behavior components in firms’ asymmetric cost function, namely, aggregate-level elasticities of costs with respect to sales increases vs. decreases. We show that the persistence of the elasticity of costs is higher for sales increases than for sales decre...
Keywords: Cost behavior, sticky costs, labor flows
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Annual Conference

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Accounting

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May 2019

CEO Compensation and Real Estate Prices : Pay for Luck or Pay for Action?

Ana ALBUQUERQUE, Ben BENNETT, Claudia CUSTODIA, Dragana CVIJANOVIC
This paper uses variation in real estate prices to test whether CEOs are paid for luck or to respond to luck. We distinguish between pay for luck and pay for responding to luck by exploiting GAAP accounting rules. In the United States, real estate used in the firm’s operations is not marked-to-mar...
Keywords: CEO compensation, Real Estate Prices, luck
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