Annual Conference

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International Macroeconomics, Money & Banking

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May 2018

This paper proposes a quantitative model of the banking sector to analyze potential aggregate impacts of the minimum capital requirements and counter-cyclical capital buffer in Basel III capital regulations. In the literature, an analysis on aggregate impacts of counter-cyclical capital buffer is li...
Keywords: Capital regulations, Banking sector, Credit Risk, bank loans
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Annual Conference

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Accounting

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May 2018

This paper examines the role that exchange-traded funds (ETFs) play in the transfer of information across firms around earnings announcements. Our analysis focuses on the differences in information transfer between broad-based and sector ETFs. We find that firms with sector ETF ownership are associa...
Keywords: ETF, Information transfer, Post earnings announcement drift, sector ETF
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Annual Conference

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Accounting

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May 2018

We study the implications of cross-country regulatory differences on banks’ transparency and stability abroad. Using a global sample of banks’ majority-owned foreign subsidiaries, we find that foreign subsidiaries’ transparency decreases when their home countries have tighter activity restrict...
Keywords: transparency within and among MNEs and national states, agency theory, multinational corporations (MNCs) and enterprises (MNEs), headquarters–subsidiary roles and relations
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Annual Conference

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Accounting

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May 2018

We undertake the first large-sample analysis of foreign tax holiday participation by U.S. firms. Tax holidays are temporary reductions of tax granted by governments, usually contingent on the firm making new operational investments in the country. We predict and find that firms are more likely to pa...
Keywords: Tax holiday, corporate tax, international tax
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Annual Conference

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Accounting, Senior Fellows/Fellows

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May 2018

Given the adverse impact on their welfare, managers are reluctant to disclose bad news timely. In this paper, we examine the effect of managers’ pay duration on firms’ voluntary disclosures of bad news. Pay duration refers to the average period that it takes for managers’ annual compensation t...
Keywords: Voluntary disclosures, management forecasts, executive compensation, pay duration
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