Annual Conference

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Corporate Finance

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May 2024

EXIM Exit The Real Effects of Trade Financing by Export Credit Agencies

Poorya KABIR, Adrien MATRAY, Karsten MULLER, Chenzi XU
We study the role of export credit agencies—the predominant tool of industrial policy— on firm behavior by using the effective shutdown of the Export–Import Bank of the United States (EXIM) from 2015–2019 as a natural experiment. We show that firms that previously relied on EXIM support saw ...
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Annual Conference

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Corporate Finance

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May 2024

Corporate Hedging, Contract Rights, and Basis Risk

Ilona BABENKO
A hedging contract can be terminated by a counterparty when a firm experiences an event of default, such as a credit downgrade, covenant violation, or bankruptcy. We build the model and show that counterparties are more likely to exercise their termination rights when a firm performs poorly and owes...
Keywords: hedging, risk management, derivatives, event of default, distress, basis risk, ISDA
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Annual Conference

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Corporate Finance

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May 2024

Equity Pay Beyond the C-suite

Andrea L. EISFELDT, Antonio FALATO, Dongryeol LEE, Mindy Xiaolan ZHANG
Equity pay has become increasingly common over the last several decades but the differences in the level of equity pay across firms are very large. This study documents the inequality in equity pay across firms and describes the drivers of firm-level differences in equity pay policies. We show that ...
Keywords: Equity Compensation, Inequality
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Annual Conference

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Corporate Finance

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May 2024

Making sure your vote does not count: ESG activism and insincere proxy voting

Dunhong JIN, Thomas NOE
This paper models strategic voting on ESG proposals by blockholders with heterogeneous reputational concerns and varying levels of commitment to ESG values. ESG activists, whose public-good gains from interven- tion are not attenuated by selling shareholders' free-riding, rationally sponsor even lon...
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Annual Conference

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Corporate Finance

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May 2024

Crafting an AI Compass - The Influence of Global AI Standards on Firms

Mehmet CANAYAZ, Zhe WANG
The adoption and commercialization of new technologies rely heavily on universally accepted principles, known as standards. Surprisingly, the role of standards in shaping business outcomes is largely unexplored. This paper provides an initial examination of how the standardization of artificial inte...
Keywords: Artificial Intelligence, Standard Setting, Investment, Technology Diffusion, Machine Learning, Big Data, Ethical AI, AI Safety, Privacy, AI Regulation, RegTech
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