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Paper Spotlight: Short-termism, Managerial Talent, and Firm Value

Are managers too myopic, relative to what shareholders would want? In a forthcoming RCFS paper, “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,… Read More »Paper Spotlight: Short-termism, Managerial Talent, and Firm Value

Last Call for Paper Submissions: RCFS Winter Conference

The final day to submit papers to the RCFS Winter Conference is December 1, 2020. The conference, which features a dual submission option with RCFS, will take place virtually on February 13 and 14, 2021. The sponsoring editors are Andrew Ellul, Isil Erel, Camelia Kuhnen, and Uday Rajan. The submission deadline for Registered Reports on Discrimination, Disparities, and Diversity in Finance is December 21, 2020.

Paper Spotlight: Wages and Firm Performance: Evidence from the 2008 Financial Crisis

We are living through a pandemic-induced recession that has slashed many firms’ cash flows with a consequent negative impact on both employment and wage levels. Firms, fighting for survival, will be pressed to cut costs, and wages are an important budget line for the vast majority of firms. At the same time, workers are important assets for firms’ survival and prosperity. What are the effects of paying higher wages on… Read More »Paper Spotlight: Wages and Firm Performance: Evidence from the 2008 Financial Crisis

Forthcoming Paper

“Efficient Programs to Support Businesses during Crises” by Thomas Philippon

RCFS Blog Series IV: The COVID-19 Pandemic Crisis and Corporate Finance

In the new entry on the RCFS blog, the RCFS editorial team discusses the new special issue of RCFS on the COVID-19 pandemic crisis and corporate finance. Editors Andrew Ellul, Isil Erel, and Uday Rajan talk about why they decided to publish a special issue on COVID, and the themes they decided to tackle in the issue, including financing of firms, equity shortfall and zombie lending, and firm characteristics and… Read More »RCFS Blog Series IV: The COVID-19 Pandemic Crisis and Corporate Finance

Paper Spotlight: Feverish Stock Price Reactions to COVID-19

The market reactions to the 2019 novel Coronavirus event, a truly exogenous shock, can help our understanding of how real economic shocks and financial policies drive firm value. In “Feverish Stock Price Reactions to COVID-19,” Stefano Ramelli and Alexander F. Wagner find strong causal evidence for the role of international trade and global value chains for corporate value. Initially, internationally-oriented firms, especially those more exposed to China, underperformed. As the… Read More »Paper Spotlight: Feverish Stock Price Reactions to COVID-19

Paper Spotlight: Resiliency of Environmental and Social Stocks: An Analysis of the Exogenous COVID-19 Market Crash

              The COVID-19 pandemic, with its heavy toll on human lives, unemployment, and financial distress, should be considered as an important acid test for firms’ professed investments in their responsibility toward society. It is during such times that we can better understand how to interpret the Environmental, Social, and Governance (ESG) scores, standard proxies for firms’ corporate social responsibility, and what is really driving… Read More »Paper Spotlight: Resiliency of Environmental and Social Stocks: An Analysis of the Exogenous COVID-19 Market Crash

RCFS Expands to 4 Issues

We are pleased to announce that the Review of Corporate Finance Studies has made the decision to begin publishing four issues per year, starting in 2021. RCFS has experienced a sustained influx of high quality submissions, allowing an increase in our annual number of published papers.

Forthcoming Paper

“Dividends versus Stock Repurchases and Long-Run Stock Returns under Heterogeneous Beliefs” by Onur Bayar, Thomas J. Chemmanur, and Mark H.  Liu