The ability of corporations to raise external equity finance varies with macroeconomic conditions, suggesting that the cost of equity issuance is time-varying. Using cross sectional data on U.S. publicly traded firms, we construct an empirical proxy of an aggregate shock to the cost of equity...

An instrument or instrumental variable is often used in an effort to avoid selection bias in inference about the effects of treatments when treatment choice is based on thoughtful deliberation. Instruments are increasingly used in health outcomes research. An instrument is a haphazard push to...

Purpose – The purpose of this paper is to investigate how foreign and domestic investors differ in their beliefs about the relative merits of a firm's political connections. Design/methodology/approach - These differences are employed to explain cross-sectional variation in the previously...

For a risk variable X and a normalized Young function φ(⋅), the Haezendonck–Goovaerts risk measure for X at level q∈(0,1) is defined as Hq[X]=infx∈R(x+h), where h solves the equation E[φ((X−x)+/h)]=1−q if Pr(Xx)0 or is 0 otherwise. In a recent work, we implemented an asymptotic...

The recent financial crisis in 2007-2008 suggests that financial shocks, the aggregate disturbances that originate directly in the financial sector, can play an important role as a source of business cycle fluctuations. In this paper, we explore the impact of aggregate shocks to the cost of...

By integrating the literature on institutional investors with that on seasoned equity offerings (SEOs), this paper investigates the role played by mutual funds around SEO announcements in China. To the extent that shareholdings already held by mutual funds in a firm prior to the firm's SEO...

This paper empirically addresses the questions of whether and, if yes, how U.S. bankers are compensated in particular with regard to incentive pay. Although the level of bank CEO pay has dropped during the financial crisis period, bank CEOs fared much better in comparison to their firms (and, in...

We use data on cross-border e-commerce between EU Member States to estimate the implied cross-border trade cost reduction when consumers move from offline to online consumption. We plug this trade cost estimate into a macro-sector multi-country CGE model to estimate the impact of online...