Annual Conference

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International Macroeconomics, Money & Banking

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May 2022

The Coming Battle of Digital Currencies

Lin William CONG, Simon MAYER
We model the dynamic competition among national fiat currencies, cryptocurrencies, and Central Bank Digital Currencies (CBDCs), whereby a country’s fiscal strength and currency strength are mutually reinforcing. The rise of cryptocurrencies hurts stronger fiat currencies, but can benefit weaker fi...
Keywords: CBDC, Cryptocurrency, Currency Competition, Digitization, Dollarization, Money, Stablecoin, Tokenomics.
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2017

The Collateralizability Premium

Kai LI, Jun LI, Hengjie AI, Christian SCHLAG
This paper studies the implications of credit market frictions for the cross-section of expected stock returns. A common prediction of macroeconomic theories of credit market frictions is that the tightness of financial constraints is countercyclical. As a result, capital that can be used as collate...
Keywords: Cross-Section of Returns, Financial Frictions, Collateral Constraint
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2021

The China-U.S. Equity Valuation Gap

Xiaoyan ZHANG, Shuojia KE, Geert BEKAERT
Before 2009, the market average price earnings ratio of Chinese firms is significantly higher than that of the U.S. firms, while after 2009, the valuation gap reverses. Using data from 1995 to 2018, we examine the dynamics and sources of valuation differentials between comparable Chinese and U.S. fi...
Keywords: Chinese stock prices, market integration, financial development, stock valuation, earnings yields, price earnings ratios, speculative trading.
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Annual Conference

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Corporate Finance

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May 2015

The Changing Nature of Corporate Board Activity

Renee B. ADAMS, Vanitha RAGUNATHAN, Robert TUMARKIN
Boards are working harder over time, but they may not be working better. Using a comprehensive sample of board data from 1996 to 2010, we document that a large proportion of board activity is carried out by committees. Pre-SOX, 36% of board activity takes place in committees. This increases to 47% p...
Keywords: Board, Committee, Sarbanes-Oxley, Delegation, Independence, Activity, Insiders
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Senior Fellows/Fellows

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Senior Fellows/Fellows

The Buyers Perspective on Security Design

Patrick VERWIJMEREN, Bruce GRUNDY
We provide evidence that security design reflects the interplay of capital supplier and security issuer preferences. While call provisions have historically been the default option in convertible security design, only a minority of post-2005 issues are callable. Because hedge funds dominate the mark...
Keywords: Security design, supply of capital, call provisions, convertibles, hedge funds
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