Annual Conference

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Corporate Finance

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May 2022

Coming to the Rescue: the Role of Government Venture Capital in the U.S.-China Trade War

Joy CHEN, Robin Kaiji GONG, Jinlin LI
Based on a novel dataset of venture capital (VC) funds and startups in China, we study the impact of the U.S.-China trade war on China’s VC market and the role of government-funded VCs (GVCs). Employing a difference-in-differences strategy, we document that independent venture capital funds (IVCs)...
Keywords: Trade War, Venture Capital, Innovation, Industrial Policy, China
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2023

Collateral Advantage: Exchange Rates, Capital Flows, and Global Cycles

Michael B. DEVEREUX, Charles ENGEL, Steve Pak Yeung WU
This paper explores the effect of global shocks in a two-country New Keynesian model in which US government debt has an advantage as a superior collateral asset in the balance sheets of banks. We show that the model can account for the observed response of the US dollar and US bond returns to a glob...
Keywords: Exchange rates, financial frictions, liquidity, convenience yield, dollar specialness
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Annual Conference

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Corporate Finance

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May 2025

Coalitions, Retaliation, and Whistleblowing: Evidence from Memorials of Qing China

Meng MIAO, Thomas NOE, Xiao YAN
Whistleblowing by senior local officials is pivotal for monitoring official behavior and suppressing corruption. Yet, the act of reporting is a strategic decision, entangled with complex considerations such as the risk of retaliation by those being reported and the gains from collusion. Despite its ...
Keywords: Whistleblowing, Political coalition, Disaster
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2016

Co-Collateral Risk

Hong ZHANG, Massimo MASSA, Chengwei WANG
This paper proposes a novel measure of stock-level margin constraints to study the impact of funding risk on the cross-section of stock returns. More specifically, we use daily cash collateral information collected from the short selling market to construct the measure, and decompose it into two com...
Keywords: Funding risk, Collateral, Short-selling, Stock Returns
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Annual Conference

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Investment Finance

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May 2013

CMBS Subordination, Ratings Inflation and Regulatory-Capital Arbitrage

Richard STANTON, Nancy WALLACE
Using detailed origination and performance data on a comprehensive sample of commercial mortgage-backed security (CMBS) deals, along with their underlying loans and a set of similarly rated residential mortgage-backed securities (RMBS), we apply reduced-form and structural modeling strategies to tes...
Keywords: CMBS, RMBS, rating inflation, regulatory-capital arbitrage
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