Annual Conference

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Investment Finance

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May 2019

Fundamental Risk Sources and Pricing Factors

Baek-Chun KIM, Zhanhui CHEN
Neoclassical theory suggests that stocks exposed to common pricing factors must face common production risks. We estimate firm-level productivity shocks and decompose them into six aggregate risk components via asymptotic principal component analysis. We find that fundamental risks drive 13 of 15 pr...
Keywords: productivity shocks, production-based asset pricing, pricing factors, empirical asset pricing models
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Annual Conference

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Corporate Finance

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May 2019

Loan Syndication Structures and Price Collusion

Jian CAI, Frederik EIDAM, Anthony SAUNDERS, Sascha STEFFEN
How does the organizational form of loan syndicates evolve and what are the effects on price collusion? We develop a novel measure of distance in lending expertise among syndicate lenders, and relate this novel measure to the organizational form of loan syndicates and loan pricing. Studying the U.S....
Keywords: Syndicated loans, Loan syndication structure, Loan pricing, Price collusion
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Annual Conference

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Corporate Finance, Capital Market Development: China and Asia

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May 2019

Going Bankrupt in China

Bo LI, Jacopo PONTICELLI
This paper investigates how legal reforms affect credit markets by studying the introduction of courts specialized in bankruptcy in China. We construct a new case-level dataset on corporate bankruptcy filings and exploit the staggered introduction of specialized courts across Chinese provinces. Spec...
Keywords: Financial Distress, Zombie firms, Judges, Court efficiency
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Annual Conference

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Corporate Finance

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May 2019

Crowdfunding Dynamics

Thomas LAMBERT, Paul BELLEFLAMME, Armin SCHWIENBACHER
We study the various network effects that are at work on crowdfunding platforms. From a theoretical perspective, we distinguish between network effects that relate to participation or to usage decisions. We use novel entrepreneur-backer data to identify their relative importance on project funding d...
Keywords: Crowdfunding, digital platforms, FinTech, network effects, multisided platforms
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Annual Conference

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Corporate Finance

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May 2019

Management (of) Proposals

Ilona BABENKO, Goeun CHOI, Rik SEN
Using shareholder voting records on management proposals for the period 2003–2015, we study whether the voting process is unbiased. We find evidence of votemanipulation by management. Specifically, the frequency of proposals that receive votes just above the threshold for passage is significantly ...
Keywords: Corporate Voting, Management Proposals, Shareholder Proposals, Manipulation
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