Annual Conference

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Economic Transformation of Asia

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May 2015

Assessing Market Failures in Export Pioneering Activities: A Structural Estimation Approach

Shang-Jin WEI, Ziru WEI, Jianhuan XU
The paper provides a first structural-estimation-based assessment of an influential hypothesis that export pioneers are too few relative to social optimum due to knowledge spillover in new market explorations. Such market failure requires two inequalities to hold simultaneously: the discovery cost i...
Keywords: Market failures, Export Pioneering, Knowledge spillover
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Annual Conference

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Corporate Finance, Senior Fellows/Fellows

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May 2015

Behind the Scenes: The Corporate Governance Preferences of Institutional Investors

Laura STARKS, Joseph A. MCCAHERY, Zacharias SAUTNER
We survey institutional investors to better understand their role in the corporate governance of firms. Consistent with a number of theories we document widespread behind-the-scenes intervention as well as governance-motivated exit. Both governance mechanisms are viewed as complementary devices, in ...
Keywords: institutional investors, Corporate governance, shareholder activism
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Annual Conference

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International Macroeconomics, Money & Banking, Senior Fellows/Fellows

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May 2015

Bond Vigilantes and Inflation: Do Domestic Bond Markets Promote Price Stability?

Andrew K. ROSE, Mark M. SPIEGEL
This paper explores the relationship between inflation and the existence of a local, nominal, publicly traded, longmaturity, domestic currency bond market. Domestic bond markets have an unclear effect on inflation; they present issuing governments with the opportunity to inflate away their debt obli...
Keywords: empirical, panel, long, maturity, domestic, currency, risk, fixed, effect, nominal, Debt
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Annual Conference

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Investment Finance

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May 2015

Can information be locked up? Informed trading ahead of macro-news announcements

Jianfeng HU, Gennaro BERNILE, Yuehua TANG
U.S. government agencies routinely allow pre-release access to macroeconomic data to accredited news agencies under embargo agreements. Using high frequency data, we find evidence consistent with informed trading during news embargoes of the Federal Open Market Committee’s (FOMC) scheduled announc...
Keywords: Media Lockup, News Embargo, Informed Trading, FOMC Announcement, Macroeconomic News
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Annual Conference

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Corporate Finance

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May 2015

Capital Gains Lock-In and Governance Choices

Stephen G. DIMMOCK, William C. GERKEN, Scott J. WEISBENNER, Zoran IVKOVIC
Differences in accrued gains and investors’ tax-sensitivity induce variation in a capital gains lock-in effect across mutual funds even for the same stock at the same time. Exploiting this variation, we show this effect influences funds’ governance decisions: higher capital gains decrease the li...
Keywords: Mutual fund, Proxy voting, Corporate governance, Capital-gains tax, Lock-in effect
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