Annual Conference

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Corporate Finance

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May 2017

Does the Market Correctly Value Investment Options?

Egor MATVEYEV, Evgeny LYANDRES, Alexei ZHDANOV
This paper shows that the stock market misprices firms' investment options. We build a real options model of optimal investment under uncertainty to estimate the value of firms' investment options. We show that firms with valuable investment options have a higher likelihood of being mispriced. Impor...
Keywords: Misvaluation, Investment Options, Optimal Investment, Demand Uncertainty, Future Returns, structural estimation
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Annual Conference

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International Macroeconomics, Money & Banking, Senior Fellows/Fellows

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May 2018

Does Sovereign Risk in Local and Foreign Currency Differ?

Marlene AMSTAD, Frank PACKER, Jimmy SHEK
Historically, sovereign debt in local currency has been considered safer than debt in foreign currency. Yet the literature offers scant theoretical or empirical guidance as to why such a gap exists, or why it appears to have slowly and steadily diminished for all regions over the past two decades, a...
Keywords: sovereign risk, local currency debt, foreign currency debt, Credit Ratings
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Annual Conference

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Accounting

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May 2023

Does Relationship Lending Discipline Disclosure? Evidence from Bailout Loans

Daniel RABETTI
Assessing the Paycheck Protection Program (PPP) — a financial rescue program designed to cover firms’ payroll expenses during the Covid-19 pandemic — I document that the decision of managers whether to reveal the bailout loan details to the public dominates the disclosure strategy of firms tha...
Keywords: disclosure, relationship capital, reputation management, Covid-19 pandemic, financial crisis
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Annual Conference

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Household Finance

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May 2024

Does Regulating Developers Democratize Credit and Homeownership?

Sumit AGARWAL, Mingxuan FAN, Pulak GHOSH, Arkodipta SARKAR, Xiaoyu ZHANG
This study examines the impact of real estate developers on homeownership and the role of regulatory interventions. Over recent decades, developers have substantially influenced global homeownership trends. Despite their pivotal role, concerns persist over operational uncertainties, including projec...
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Institutional Collaborator

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Institutional Collaborator

Does Paying Passive Managers to Engage Improve ESG Performance?

Marco BECHT, Julian FRANKS, Hideaki MIYAJIMA, Kazunori SUZUKI
The paper studies a natural experiment in responsible investment conducted by the Japanese Government Pension Investment Fund (GPIF). In 2018 GPIF gave its largest passive manager a remunerated mandate to engage with portfolio companies to improve ESG and adopted best-in-class indexes, rewarding hig...
Keywords: ESG, active ownership, investor stewardship, engagement, ESG indexes, passive managers, portfolio tilting
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