Journal of Corporate Finance最新文献

英文中文

The information advantage of industry common owners and its spillover effect on stock price crash risk

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2025-02-27 DOI: 10.1016/j.jcorpfin.2025.102764

Qingyuan Li , Xiaoran Ni , P. Eric Yeung , David Yin

Blockholding multiple firms within an industry generates an information advantage for institutional investors, who can better differentiate between the industry-wide and firm-specific nature of bad news released by peer firms and avoid selling on false spillover signals (i.e., “smart exit”). Empirically, we document that industry common ownership reduces future firm-level stock price crash risk. Our results can be explained by the attenuated spillover from industry peers' firm-specific bad news, as a complement to the monitoring effect that reduces the focal firm's hoarding of bad news. Our results suggest that the presence of industry common owners provides a stabilizing effect against stock price contagion.

机构投资者可以更好地区分同行公司发布的坏消息的行业性质和公司性质，避免在虚假溢出信号下卖出（即 "聪明退出"）。从实证角度看，我们发现行业共同所有权降低了未来公司层面的股价暴跌风险。我们的研究结果可以解释为，行业内同行公司特定坏消息的溢出效应减弱，作为对监控效应的补充，监控效应减少了焦点公司对坏消息的囤积。我们的结果表明，行业共同所有者的存在具有稳定股价的作用。

引用次数: 0

Dispersed ownership and asset pricing: An unpriced premium associated with free float

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2025-02-23 DOI: 10.1016/j.jcorpfin.2025.102763

Bruce Hearn , Igor Filatotchev , Marc Goergen

We explore differences in the levels of dispersed ownership that lead to a returns-based free float hedging factor in addition to size, which augments the capital asset pricing model (CAPM) in explaining the cross-section of stock returns. Using the S&P 1500 stocks in the US between 1985 and 2023, the results support the advantages of free float within a three-factor CAPM including size over alternative models based on liquidity, book-to-market value, and momentum. We argue that this yields a useful means for hedging effectively against the risks associated with the fundamental underlying likelihood of expropriation in a specific firm based on its ownership structure.

引用次数: 0

Foreign ownership and board cultural diversity

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2025-02-20 DOI: 10.1016/j.jcorpfin.2025.102753

Oussama El Moujahid , Bart Frijns , S. Abraham Ravid , Naciye Sekerci

Using detailed hand-collected data on firm ownership and board cultural diversity from Sweden, we find that foreign ownership is positively associated with board cultural diversity. This relationship is not an artifact of foreign owners joining the board, and it is not driven by firms with substantial foreign focus. The presence of foreign owners on nomination committees seems to be the channel through which foreign owners implement cultural diversity. The positive relationship between foreign ownership and board cultural diversity is also more pronounced in firms where owners may have more say (family firms, dual-class share firms, and firms with concentrated ownership). However, we do not find evidence that cultural diversity increases firm value or that it is correlated with other types of diversity. Our preferred interpretation is quasi-homophily.

引用次数: 0

Major customers and carbon footprints along the supply chain

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2025-02-16 DOI: 10.1016/j.jcorpfin.2025.102752

Saiying Deng , Tinghua Duan , Frank Weikai Li , Xiaoling Pu

This paper examines whether major corporate customers curb corporate carbon emissions along the supply chain. We show that suppliers with a more concentrated customer base have significantly lower carbon emissions. The results are robust to alternative measures of carbon emissions and customer concentration, alternative sample, alternative explanation, and various approaches to mitigate endogeneity concerns. The effect is more pronounced when major customers have made emission-reduction commitment, when they are exposed to greater climate regulatory shocks and risks, and when they become more concerned about regulatory scrutiny. Moreover, the curbing effect of major customers on supplier carbon emissions is stronger when customers have lower switching costs and stronger bargaining power over suppliers. We show that one way through which suppliers reduce emissions is by adopting green technologies. Our study highlights the role of major customers in facilitating the transition to a low-carbon economy through decarbonization along the supply chain.

引用次数: 0

Tacit collusion among dominant banks: Evidence from round-yard loan pricing

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2025-02-13 DOI: 10.1016/j.jcorpfin.2025.102750

Yu-Ju Chan , Chih-Yung Lin , Tse-Chun Lin

While there is no apparent reason for loan spreads to cluster at certain numbers, we find that approximately 70 % of bank loans have round-yard spreads (i.e., multiples of 25 basis points). We hypothesize that dominant banks implicitly collude using round yards as focal pricing points when negotiating with borrowers. Tacit collusion leads to higher spreads and total costs of round yard priced loans than of non-round yard priced loans. Consistent with our tacit collusion hypothesis, dominant banks round up loans to multiple yards rather than rounding them down. Moreover, round-yard pricing is more prevalent among lower-quality and nonrepeat borrowers.

引用次数: 0

Surviving the storm: Evaluating the role of enterprise risk management in property and liability insurers' performance during the COVID-19 pandemic

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2025-02-12 DOI: 10.1016/j.jcorpfin.2025.102751

Derrick W.H. Fung , Wing Yan Lee , Charles C. Yang

This study examines whether the implementation of a mature enterprise risk management (ERM) framework by property and liability insurers improved their resilience in the face of the COVID-19 pandemic. To address the potential problem of endogeneity, we analyze a panel dataset of listed property and liability insurers from around the world using the propensity score matching method. Subsequently, a two-step “doubly robust” estimation method is employed. The results reveal that the performance of insurers with less mature ERM frameworks was adversely affected by the pandemic but that of insurers with more mature ERM frameworks was not. These findings remain consistent after conducting various robustness checks. Separate consideration of each ERM component reveals that no component independently enhanced insurers' resilience; rather, the components collectively enhanced their resilience. Overall, this study provides valuable insights for insurers and regulators aiming to enhance the industry's ability to withstand future challenges.

{"title":"Surviving the storm: Evaluating the role of enterprise risk management in property and liability insurers' performance during the COVID-19 pandemic","authors":"Derrick W.H. Fung , Wing Yan Lee , Charles C. Yang","doi":"10.1016/j.jcorpfin.2025.102751","DOIUrl":"10.1016/j.jcorpfin.2025.102751","url":null,"abstract":"<div><div>This study examines whether the implementation of a mature enterprise risk management (ERM) framework by property and liability insurers improved their resilience in the face of the COVID-19 pandemic. To address the potential problem of endogeneity, we analyze a panel dataset of listed property and liability insurers from around the world using the propensity score matching method. Subsequently, a two-step “doubly robust” estimation method is employed. The results reveal that the performance of insurers with less mature ERM frameworks was adversely affected by the pandemic but that of insurers with more mature ERM frameworks was not. These findings remain consistent after conducting various robustness checks. Separate consideration of each ERM component reveals that no component independently enhanced insurers' resilience; rather, the components collectively enhanced their resilience. Overall, this study provides valuable insights for insurers and regulators aiming to enhance the industry's ability to withstand future challenges.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"91 ","pages":"Article 102751"},"PeriodicalIF":7.2,"publicationDate":"2025-02-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143419492","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Carbon home bias of European investors

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2025-02-12 DOI: 10.1016/j.jcorpfin.2025.102748

Martijn Adriaan Boermans , Rients Galema

This study investigates a phenomenon we call “carbon home bias”: the tendency of investors to disproportionately allocate investments towards domestic carbon-intensive assets. Using a confidential security-by-security euro area holdings database, we show that European investors favor domestic over foreign carbon-intensive investments. We provide evidence for substantial carbon home bias, utilizing a newly developed measure of portfolio carbon home bias that measures domestic carbon bias in excess of home bias. Our study highlights home advantages as possible motivation for carbon home bias. Using the introduction of the French Energy Law Article 173 as a positive shock to decarbonization incentives, we find that French institutional investors maintain their domestic carbon-intensive holdings, while other European institutional investors reduce theirs. Higher domestic institutional ownership is associated with about 50% lower carbon emissions in the five years after the regulatory change and excess returns of about 3% per year. Our results further provide evidence for a foreign carbon premium, while the domestic carbon premium is insignificant. Consequently, the phenomenon of carbon home bias cannot be attributed to differences between home and foreign carbon risk premia.

{"title":"Carbon home bias of European investors","authors":"Martijn Adriaan Boermans , Rients Galema","doi":"10.1016/j.jcorpfin.2025.102748","DOIUrl":"10.1016/j.jcorpfin.2025.102748","url":null,"abstract":"<div><div>This study investigates a phenomenon we call “carbon home bias”: the tendency of investors to disproportionately allocate investments towards domestic carbon-intensive assets. Using a confidential security-by-security euro area holdings database, we show that European investors favor domestic over foreign carbon-intensive investments. We provide evidence for substantial carbon home bias, utilizing a newly developed measure of portfolio carbon home bias that measures domestic carbon bias in excess of home bias. Our study highlights home advantages as possible motivation for carbon home bias. Using the introduction of the French Energy Law Article 173 as a positive shock to decarbonization incentives, we find that French institutional investors maintain their domestic carbon-intensive holdings, while other European institutional investors reduce theirs. Higher domestic institutional ownership is associated with about 50% lower carbon emissions in the five years after the regulatory change and excess returns of about 3% per year. Our results further provide evidence for a foreign carbon premium, while the domestic carbon premium is insignificant. Consequently, the phenomenon of carbon home bias cannot be attributed to differences between home and foreign carbon risk premia.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"92 ","pages":"Article 102748"},"PeriodicalIF":7.2,"publicationDate":"2025-02-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143453012","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Real options and CEO social connections: The role of financial flexibility

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2025-02-10 DOI: 10.1016/j.jcorpfin.2025.102749

Md Nazmul Hasan Bhuyan , Luis García-Feijóo , Tijana Rajkovic

We examine the impact of CEO social connections on the value of real options. Consistent with the benefits of information transmission, reputation, and trust embedded in social connections, we find that CEO social connections act as real option facilitator through improved financial flexibility, alleviating financial constraints. The effect of CEO social connections is stronger for firms with high growth opportunities and when the CEO has a longer-term career horizon and greater ability. CEO social connections have an increasingly stronger impact on the value of real options. Overall, social connections influence the value of real options, a novel finding in the literature.

引用次数: 0

How does the structure of an interest expense cap change the tax benefits of debt?

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2025-02-08 DOI: 10.1016/j.jcorpfin.2025.102747

Karan Bhanot , Pascal François , Palani-Rajan Kadapakkam

Using an earnings-based structural model, calibrated with US data for the period 2001–2017, we examine how the structure of an interest expense cap for the deduction of interest expense changes the tax benefits of debt. We find that an EBIT (EBITDA) based cap reduces the marginal tax benefits of debt by 6 percentage points (4.6 p.p.) of unlevered firm value for a typical firm. This impact differs across industries due to variations in industry-specific labor and physical capital deployed, and the associated depreciation. An EBITDA-based structure for a cap reduces the differential tax impact of a cap across industries. Our results are widely applicable in determining the cost of debt in the presence of these cap structures, enshrined in the US and OECD countries.

引用次数: 0

Risk, return, and environmental and social ratings

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2025-02-05 DOI: 10.1016/j.jcorpfin.2025.102744

Sudheer Chava , Jeong Ho (John) Kim , Jaemin Lee

We analyze the risk and return characteristics across firms sorted by their environmental and social (ES) ratings. We document that ES ratings have no significant relation with average stock returns or unconditional market risk, and we provide evidence that these non-results are not due to low statistical power. Stocks of firms with higher ES ratings do have significantly lower systematic downside risk, as measured by downside beta, relative downside beta, coskewness, and tail risk beta. Nevertheless, the economic magnitude of such reduction in downside risk is small. Our results suggest that stock investors who derive non-pecuniary benefits from ES investing can engage in it without sacrificing financial performance.

引用次数: 0

下一页尾页

类型

全部化学•材料生命科学医学物理工程技术环境•农林材料科学地球科学法学管理学化学环境科学与生态学计算机科学教育学经济学农林科学人文科学生物学数学物理与天体物理心理学综合性期刊其他工业工程理学历史学农学文学信息工程

数据库

全部 ACS Publications Elsevier ieeexplore Springer The Royal Society of Chemistry Wiley

期刊

Journal of Corporate Finance

全部 Acc. Chem. Res. ACS Applied Bio Materials ACS Appl. Electron. Mater. ACS Appl. Energy Mater. ACS Appl. Mater. Interfaces ACS Appl. Nano Mater. ACS Appl. Polym. Mater. ACS BIOMATER-SCI ENG ACS Catal. ACS Cent. Sci. ACS Chem. Biol. ACS Chemical Health & Safety ACS Chem. Neurosci. ACS Comb. Sci. ACS Earth Space Chem. ACS Energy Lett. ACS Infect. Dis. ACS Macro Lett. ACS Mater. Lett. ACS Med. Chem. Lett. ACS Nano ACS Omega ACS Photonics ACS Sens. ACS Sustainable Chem. Eng. ACS Synth. Biol. Anal. Chem. BIOCHEMISTRY-US Bioconjugate Chem. BIOMACROMOLECULES Chem. Res. Toxicol. Chem. Rev. Chem. Mater. CRYST GROWTH DES ENERG FUEL Environ. Sci. Technol. Environ. Sci. Technol. Lett. Eur. J. Inorg. Chem. IND ENG CHEM RES Inorg. Chem. J. Agric. Food. Chem. J. Chem. Eng. Data J. Chem. Educ. J. Chem. Inf. Model. J. Chem. Theory Comput. J. Med. Chem. J. Nat. Prod. J PROTEOME RES J. Am. Chem. Soc. LANGMUIR MACROMOLECULES Mol. Pharmaceutics Nano Lett. Org. Lett. ORG PROCESS RES DEV ORGANOMETALLICS J. Org. Chem. J. Phys. Chem. J. Phys. Chem. A J. Phys. Chem. B J. Phys. Chem. C J. Phys. Chem. Lett. Analyst Anal. Methods Biomater. Sci. Catal. Sci. Technol. Chem. Commun. Chem. Soc. Rev. CHEM EDUC RES PRACT CRYSTENGCOMM Dalton Trans. Energy Environ. Sci. ENVIRON SCI-NANO ENVIRON SCI-PROC IMP ENVIRON SCI-WAT RES Faraday Discuss. Food Funct. Green Chem. Inorg. Chem. Front. Integr. Biol. J. Anal. At. Spectrom. J. Mater. Chem. A J. Mater. Chem. B J. Mater. Chem. C Lab Chip Mater. Chem. Front. Mater. Horiz. MEDCHEMCOMM Metallomics Mol. Biosyst. Mol. Syst. Des. Eng. Nanoscale Nanoscale Horiz. Nat. Prod. Rep. New J. Chem. Org. Biomol. Chem. Org. Chem. Front. PHOTOCH PHOTOBIO SCI PCCP Polym. Chem.

﹀