Annual Conference

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Corporate Finance, Senior Fellows/Fellows

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May 2017

Local Crowding Out in China

Yi HUANG, Ugo PANIZZA, Marco PAGANO
In China, between 2006 and 2013, local public debt crowded out the investment of private firms by tightening their funding constraints while leaving state-owned firms' investment unaffected. We establish this result using a purpose-built data set for Chinese local public debt. Private firms invest l...
Keywords: Investment, local public debt, Crowding out, Credit Constraints, China
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Annual Conference

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Accounting

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May 2017

Macroeconomic uncertainty and quantitative vs. qualitative inputs to analyst risk forecasts

Peter JOOS, Khrystyna BOCHKAY
We study how sell-side analysts map both quantitative and qualitative information from earnings conference calls into their forecasts of fundamental firm risk. We find that analysts perceive firm risk to be lower when absolute earnings surprises are small and tone of the earnings conference calls is...
Keywords: Analysts’ risk forecasts, unexpected earnings, tone, macroeconomic uncertainty
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2017

Macroprudential Policies in a Low Interest-Rate Environment

Margarita RUBIO, Fang YAO
In this paper, we analyze the use of macroprudential policies in a low interest rate environment, where an occasionally binding zero lower bound (ZLB) constraint gives rise to aggregate demand externalities. We study this issue by using a dynamic stochastic general equilibrium (DSGE) model with fina...
Keywords: Macroprudential, monetary policy, zero lower bound, Collateral Constraint, Financial stability
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Annual Conference

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Accounting

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May 2017

Market Perceptions of the Informational and Comparability Effects of Fair Value Reporting for Tangible Assets: US and Cross-Country Evidence

Edward J. RIEDL, Jenelle K. CONAWAY, Lihong LIANG
This paper examines equity market perceptions of fair value reporting for tangible assets. We identify six events—four designated as increasing, two as decreasing—affecting the likelihood of US adoption of fair value reporting for investment property (i.e., real estate) assets, one of the larges...
Keywords: fair value, event study, tangible assets, convergence
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Annual Conference

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Economic Transformation of Asia

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May 2017

Misallocation due to Inefficient Exits: Evidence from India

Nirupama KULKARNI
An efficient market economy requires firm exits so that resources are lured or forced away from unproductive uses. Creditors’ ability to seize defaulters’ assets is an important aspect of making the process of exit of firms efficient. I examine the implications of suppressing the normal competit...
Keywords: Misallocation, Access to credit, Bank Credit, financial institutions, firm performance
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