RCFS News

Are managers too myopic, relative to what shareholders would want? In “Short-termism, Managerial Talent, and Firm Value,” Richard Thakor provides a theoretical model in which the answer is “no,” with a surprising twist: In the model, managers prefer long-term projects, because it allows talented managers to earn higher rents. However, to reduce managerial rents, the firm may induce a manager to invest in a short-term project, even though the long-term… Read More »Paper Spotlight: Short-termism, Managerial Talent, and Firm Value

“Disregarding the Shoulders of the Giants: Inferences from Innovation Research” by David Reeb and Wanli Zhao

Do staggered (or classified) boards harm shareholder value through entrenchment or help through stability? In a forthcoming RCFS paper, “Staggered Boards and the Value of Voting Rights,” Oğuzhan Karakaş and Mahdi Mohseni revisit this question by using a novel methodology and provide causal evidence on the entrenchment view of staggered boards. Existence of staggered boards, where only a fraction of board members is up for election in a year, has… Read More »Paper Spotlight: Staggered Boards and the Value of Voting Rights

The 17th Annual Meeting of the Financial Research Association will feature a dual submission option with RAPS and RCFS. The deadline for paper submissions is August 31, 2021. The conference will take place December 11-12, at the Encore Hotel in Las Vegas. Submit online here.

“The Wisdom of Crowds in FinTech: Evidence from Initial Coin Offerings” by Tao Li, Donghwa Shin, and Jongsub Lee

Risk taking by banks has been discussed extensively by researchers and policy makers for many years, even preceding the Great Recession. Literature has focused on two mechanisms that alter banks’ risk-taking behavior: higher regulatory capital ratios and higher competition due to bank deregulation. But, how does a bank’s equity capital ratio interact with banking competition in their impact on risk taking? In a forthcoming RCFS paper, “Effect of the Equity Capital… Read More »Paper Spotlight: Effect of the Equity Capital Ratio on the Relationship between Competition and Bank Risk-Taking Behavior

We are pleased to share that Andrew Ellul has been renewed for another 3-year term as Executive Editor and Isil Erel has been renewed for a second term as an editor. We are grateful to Uday Rajan, who has completed his second term as an editor. Uday has been with RCFS since 2015 and we are so thankful to him for his dedication. We welcome Robert Marquez to the team… Read More »Editorial Team Changes

The video of Amir Sufi’s keynote presentation, “A Goldilocks Theory of Fiscal Policy,” at Cavalcade North America 2021 can now be viewed on the Cavalcade web site.

“Seed-Stage Success and Growth of Angel Co-investment Networks” by Buvaneshwaran Venugopal and Vijay Yerramilli

The Editor’s Choice paper for issue 10(2) is “Wages and Firm Performance: Evidence from the 2008 Financial Crisis” by Paige Ouimet and Elena Simintzi. You can read the paper free online.