Annual Conference

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Corporate Finance

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May 2017

Is the Chinese Anti-Corruption Campaign Effective?

Shu TAO, John GRIFFIN, Clark LIU
Chinese firms with characteristics commonly associated with corporate self-dealing are more likely to have executives investigated by the anti-corruption campaign. University affiliations with the top current leaders are associated with a reduced probability of investigation, but general political a...
Keywords: Anti-Corruption Campaign, China, corporate culture
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Annual Conference

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Economic Transformation of Asia, Senior Fellows/Fellows

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May 2017

Leverage Induced Fire Sales and Asset Prices

Jiangze BIAN, Cong LIN, Hao ZHOU, Kelly SHUE, Zhiguo HE
We provide direct evidence of leverage-induced fire sales contributing to a market crash using account-level trading data for brokerage- and shadow-financed margin accounts during the Chinese stock market crash of 2015. Margin investors heavily sell their holdings when their account-level leverage e...
Keywords: stock market, FinTech Lending, fire sales
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Annual Conference

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Corporate Finance, Senior Fellows/Fellows

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May 2017

Local Crowding Out in China

Yi HUANG, Ugo PANIZZA, Marco PAGANO
In China, between 2006 and 2013, local public debt crowded out the investment of private firms by tightening their funding constraints while leaving state-owned firms' investment unaffected. We establish this result using a purpose-built data set for Chinese local public debt. Private firms invest l...
Keywords: Investment, local public debt, Crowding out, Credit Constraints, China
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Annual Conference

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Accounting

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May 2017

Macroeconomic uncertainty and quantitative vs. qualitative inputs to analyst risk forecasts

Peter JOOS, Khrystyna BOCHKAY
We study how sell-side analysts map both quantitative and qualitative information from earnings conference calls into their forecasts of fundamental firm risk. We find that analysts perceive firm risk to be lower when absolute earnings surprises are small and tone of the earnings conference calls is...
Keywords: Analysts’ risk forecasts, unexpected earnings, tone, macroeconomic uncertainty
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2017

Macroprudential Policies in a Low Interest-Rate Environment

Margarita RUBIO, Fang YAO
In this paper, we analyze the use of macroprudential policies in a low interest rate environment, where an occasionally binding zero lower bound (ZLB) constraint gives rise to aggregate demand externalities. We study this issue by using a dynamic stochastic general equilibrium (DSGE) model with fina...
Keywords: Macroprudential, monetary policy, zero lower bound, Collateral Constraint, Financial stability
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