Annual Conference

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Corporate Finance

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May 2024

Using a novel administrative dataset, we study the cross-border capital flows related to internal loans of Chinese multinational enterprises. We exploit an exogenous policy change on the RMB exchange rate and provide evidence that the expectation of the RMB exchange rate has a significant impact on ...
Keywords: Multinationals, RMB Exchange Rate, Internal Debt, Capital Flight
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Annual Conference

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Corporate Finance

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May 2024

We study the role of export credit agencies—the predominant tool of industrial policy— on firm behavior by using the effective shutdown of the Export–Import Bank of the United States (EXIM) from 2015–2019 as a natural experiment. We show that firms that previously relied on EXIM support saw ...
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Annual Conference

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Corporate Finance

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May 2024

A hedging contract can be terminated by a counterparty when a firm experiences an event of default, such as a credit downgrade, covenant violation, or bankruptcy. We build the model and show that counterparties are more likely to exercise their termination rights when a firm performs poorly and owes...
Keywords: hedging, risk management, derivatives, event of default, distress, basis risk, ISDA
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Annual Conference

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Corporate Finance

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May 2024

Equity pay has become increasingly common over the last several decades but the differences in the level of equity pay across firms are very large. This study documents the inequality in equity pay across firms and describes the drivers of firm-level differences in equity pay policies. We show that ...
Keywords: Equity Compensation, Inequality
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Annual Conference

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Corporate Finance

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May 2024

This paper models strategic voting on ESG proposals by blockholders with heterogeneous reputational concerns and varying levels of commitment to ESG values. ESG activists, whose public-good gains from interven- tion are not attenuated by selling shareholders' free-riding, rationally sponsor even lon...
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