Annual Conference

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Corporate Finance

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May 2021

Outsourcing Climate Change

Hao LIANG, Rui DAI, Rui DUAN, Lilian NG
This paper exploits newly available information on firms' direct (own production) and indirect (supplier-generated) carbon emission intensities and transaction-level imports to conduct an in-depth analysis of whether and how U.S. firms address climate change. We find robust evidence that U.S. firms'...
Keywords: Outsourcing, Emissions, Import, Pricing and Welfare Implications
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Annual Conference

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Corporate Finance

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May 2021

Finance Leases: In the Shadow of Banks

Yanping SHI, Jeffery (Jinfan) ZHANG
By analyzing a hand-collected transaction-level dataset on the finance leases of China’s public firms for the period 2007-2019, this paper sheds light on China’s leasing market, the second largest in the world. We find that banks use their affiliated leasing firms to provide credit to clients in...
Keywords: Finance Lease, shadow banking, Relationship Lending, Regulation Arbitrage, monetary policy
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Annual Conference

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Corporate Finance

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May 2021

Capital Budgeting, Uncertainty, and Misallocation

Ben CHAROENWONG, Alan KWAN, Yosuke KIMURA, Eugene TAN
We use data on firms' expectations and planned capital expenditures to show planned investment (i) is partially flexible to real-time shocks, and (ii) is a strong predictor of actual investment, with higher statistical importance than expected sales. To explain these facts, we develop an investment ...
Keywords: Corporate investment, uncertainty, Expectation Formation, Forecasting
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Annual Conference

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Corporate Finance

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May 2021

Dividend Policy in the Era of Big Data

Shujing WANG, Yancheng QIU, Tao SHU
The releases of real-time satellite data of U.S. retail firms’ parking lot traffic reduce information asymmetry between managers and outside investors. Using the staggered releases of satellite data as a quasi-natural experiment, we test the competing dividend theories based on information asymmet...
Keywords: Alternative Data, Satellite Imagery Data, Dividend Policy, Outcome Model, Substitute Model, Signaling Model, Corporate governance
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2021

Corporate Loan Spreads and Economic Activity

Sascha STEFFEN, Anthony SAUNDERS, Daniel STREITZ, Alessandro SPINA
We use secondary corporate loan-market prices to construct a novel loan-market-based credit spread. This measure has considerable predictive power for economic activity across macroeconomic outcomes in both the U.S. and Europe and captures unique information not contained in public market credit spr...
Keywords: credit spreads, Secondary loan market, bonds, credit supply, Business cycle, COVID-19
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