Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2015

We document a novel channel through which coordinated trading exerts externalities on financial markets. We study the impact of a financial advisory firm that recommends frequent reallocations between equity and bond funds to Chilean pension investors. The recommendations generate large and coordina...
Keywords: Coordinated Noise Trading, Pension Funds, Price Pressure
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Annual Conference

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International Macroeconomics, Money & Banking, Senior Fellows/Fellows

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May 2015

Do stock markets act as a spare tire during banking crises, providing an alternative corporate financing channel and mitigating the economic severity of these crises? Using firm-level data in 36 countries from 1990 through 2011, we find that the adverse consequences of banking crises on equity issua...
Keywords: Shareholder protection laws, Corporate finance, financial crises, Firm profits, Firm investment choices
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2015

Do middle-income countries face difficult challenges producing consistent growth? Using transition matrix analysis, we can easily reject any unconditional notion of a “middle-income trap” in the data. However, countries have different fundamentals and policies. Using a non-parametric classificat...
Keywords: Economic growth, Growth determinants, Middle-income trap, Infrastructure, Conditional inference regression tree
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Annual Conference

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Corporate Finance, Senior Fellows/Fellows

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May 2015

We study the efficiency of internal capital markets at state-controlled and privately owned business groups in China. Using highly granular data on within-group capital flows, we document stark differences: while private groups allocate more capital to units with better investment opportunities, sta...
Keywords: State capitalism, business groups, internal capital markets, private enterprise
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Annual Conference

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Corporate Finance

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May 2015

We show that CEOs strategically time corporate news releases to coincide with months in which their equity vests. These vesting months are determined by equity grants made several years prior, and thus unlikely driven by the current information environment. CEOs reallocate news into vesting months, ...
Keywords: Voluntary Disclosure, Equity Vesting, CEO Incentives, News
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