Annual Conference

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Corporate Finance, Senior Fellows/Fellows

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May 2021

Paying Attention to ESG: Evidence from Big Data Analytics

Andrew KAROLYI, Alan KWAN, Wendi HUANG
Environment, social and governance (ESG) issues are increasingly important to investors and ESG data have become the backbone of responsible investing. Yet, ESG ratings feature data quality issues with considerable dispersion among data providers. We propose a new measure based on attention to ESG i...
Keywords: ESG, Big data analytics, intent data, institutional investors.
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Annual Conference

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Corporate Finance

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May 2021

Regulation-Induced CSR

Rik SEN, Vidhi CHHAOCHHARIA, Jing XU
Under a comply-or-explain framework, the Indian Companies Act of 2013 mandated that companies spend 2% of their profits towards CSR. In response, aggregate CSR spending increased substantially and most firms spent non-trivial amounts. These activities had a substantial real impact. On average, INR 1...
Keywords: CSR spending, Sustainability, Education, India
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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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