Annual Conference

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Corporate Finance

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May 2015

The Changing Nature of Corporate Board Activity

Renee B. ADAMS, Vanitha RAGUNATHAN, Robert TUMARKIN
Boards are working harder over time, but they may not be working better. Using a comprehensive sample of board data from 1996 to 2010, we document that a large proportion of board activity is carried out by committees. Pre-SOX, 36% of board activity takes place in committees. This increases to 47% p...
Keywords: Board, Committee, Sarbanes-Oxley, Delegation, Independence, Activity, Insiders
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Annual Conference

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International Macroeconomics, Money & Banking, Senior Fellows/Fellows

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May 2015

The Gravity of Experience

Pushan DUTT, Ana Maria SANTACREU, Daniel TRACA
In this paper, we establish the importance of experience in international trade in reducing unmeasured trade costs and facilitating bilateral trade. We find a strong role for experience, measured in years of positive trade, for both aggregate and sectoral bilateral trade. In an augmented gravity fra...
Keywords: Gravity model, Dark Trade Costs, Experience, Extensive and intensive margin
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Annual Conference

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Economic Transformation of Asia

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May 2015

Rising Intergenerational Income Persistence in China

Junsen ZHANG, Fan YI, Junjian YI
This study attempts to provide the first systematical analysis of the temporal patterns of crosssectional inequality and intergenerational mobility amid China’s economic transition and growth. First, we estimate the declining pattern of intergenerational mobility in income and education with respe...
Keywords: The Great Gatsby curve, cross-sectional inequality, intergenerational mobility
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2015

The Information Value of Sovereign Credit Rating Reports

Sumit AGARWAL, Vincent CHEN, Weina ZHANG, Geoffrey SIM
We examine the information value of sovereign credit rating reports issued by Moody’s in the sovereign credit default swaps (CDS) markets across 70 countries from 2003 to 2013. We find that the negative linguistic tone in the reports contains new information beyond credit rating actions. We code t...
Keywords: Eurozone Sovereign Debt Crisis, Linguistic Tone, Naïve Bayesian Algorithm;
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2015

The Transmission of Monetary Policy through Redistributions and Durables Purchases

Silvana TENREYRO, Vincent STERK
Using a tractable OLG model with government debt, we study a redistribution channel for the transmission of monetary policy. Expansionary open-market operations generate a negative wealth effect, increasing households’ incentives to save and pushing down the real interest rate. This leads to a sub...
Keywords: Open market operations, Durables, Heterogeneous agents
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