Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2017

Are Mutual Fund Managers Paid for Investment Skill?

Ron KANIEL , Markus IBERT, Stijn VAN NIEUWERBURGH, Roine VESTMAN
Compensation of mutual fund managers is paramount to understanding agency frictions in asset delegation. We collect a unique registry-based dataset on the compensation of Swedish mutual fund managers. We find a concave relationship between pay and revenue, in contrast to how investors compensate the...
Keywords: Portfolio manager compensation, Mutual Fund Performance, financial sector income
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2017

The Collateralizability Premium

Kai LI, Jun LI, Hengjie AI, Christian SCHLAG
This paper studies the implications of credit market frictions for the cross-section of expected stock returns. A common prediction of macroeconomic theories of credit market frictions is that the tightness of financial constraints is countercyclical. As a result, capital that can be used as collate...
Keywords: Cross-Section of Returns, Financial Frictions, Collateral Constraint
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Annual Conference

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Accounting, Senior Fellows/Fellows

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May 2017

Bank Monitoring and Corporate Tax Planning: Evidence from Loan Covenants

Yupeng LIN, Zilong ZHANG, Xiangang XIN, Liandong ZHANG
This study examines the effect of bank monitoring on corporate tax planning behavior. To identify the causal effect, we use a regression discontinuity design, taking advantage of the discrete nature of bank control rights surrounding covenant violation thresholds. We find that strengthened bank moni...
Keywords: Bank monitoring, tax planning, loan covenants, cash tax savings, tax risk, regression discontinuity design
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Annual Conference

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International Macroeconomics, Money & Banking, Senior Fellows/Fellows

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May 2017

Bankers on Fed Boards: Is Good News for the Banks Bad News for the Fed?

Renee B. ADAMS
Bankers and non-bankers sit on Federal Reserve Bank Boards. In the case of banks, this may create a perception problem since the Fed supervises banks. I examine who sits on Reserve Bank boards and the market reaction to director appointments during the period 1990-2009. I document that Fed directors...
Keywords: Federal Reserve, Director, Banks, Conflicts of Interest, Reputation, Perception
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Annual Conference

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International Macroeconomics, Money & Banking, Senior Fellows/Fellows

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May 2017

Banking The Unbanked: What do 255 Million New Bank Accounts Reveal about Financial Access?

Sumit AGARWAL, Amit SERU, Pulak GHOSH, Shashwat ALOK, Soumya GHOSH, Tomasz PISKORSKI
In this ongoing study, we use the largest financial inclusion program in the world to study the role of financial inclusion on the unbanked and the real economy. Using administrative account level micro data, we find that the program led to 255 million new bank account openings in India (as of Novem...
Keywords: banking, Financial Inclusion, Financial Literacy, big data, Financial Access, savings, Spending, Debit Card, Consumer Finance, Household Finance
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