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RCFS News

RCFS Blog Series II: Banks’ Contingent Capital Trigger Effects

In the RCFS blog, Professor Ellul discusses Boris Vallée‘s paper “Banks’ Contingent Capital Trigger Effects,” which won the RCFS’s 2020 Rising Scholar Award. Vallée finds that liability management exercises, a type of contingent capital trigger used by banks, are effective at improving banks’ capitalization levels. This finding is particularly important during the COVID-19 pandemic, when economic downturn is likely to put pressure on banks. Read the full post on the blog.

Editor’s Choice 9(2)

The Editor’s Choice paper for 9(2) is “Banks’ Non-interest Income and Systemic Risk” by Markus K. Brunnermeier, Gang Nathan Dong, and Darius Palia. You can read the paper free online.

Paper Spotlight: Identifying the Real Effects of Zombie Lending

              The impact of COVID-19 has driven many firms into financial distress, and policymakers around the world have responded with various emergency measures to support the business sector. While the immediate priority has been to get support out quickly to firms, over time more active decisions will have to be made on which firms should be supported. A potential danger that arises is that… Read More »Paper Spotlight: Identifying the Real Effects of Zombie Lending

Forthcoming Paper

“Institutional Investors and Hedge Fund Activism” by Simi Kedia, Laura  Starks, and Xianjue Wang

Forthcoming Papers

“Wages and Firm Performance: Evidence from the 2008 Financial Crisis” by Paige Parker Ouimet and Elena Simintzi “Short-termism, Managerial Talent, and Firm Value” by Richard T. Thakor “Resiliency of environmental and social stocks: an analysis of the exogenous COVID-19 market crash” by Rui Albuquerque, Yrjo Koskinen, Shuai Yang, and Chendi Zhang “Identifying the Real Effects of Zombie Lending” by Fabiano Schivardi, Enrico Sette, and Guido Tabellini

Paper Spotlight: Banks as Lenders of First Resort: Evidence from the COVID-19 Crisis

                The COVID-19 pandemic induced an unprecedented “stress test” on the financial system and the ability of banks to supply liquidity to the real economy. A new paper by Lei Li, Phil Strahan, and Song Zhang entitled “Banks as Lenders of First Resort: Evidence from the COVID-19 Crisis” starts with the following important observation: In the last three weeks of March 2020, banks… Read More »Paper Spotlight: Banks as Lenders of First Resort: Evidence from the COVID-19 Crisis

Paper Spotlight: Rethinking the Use of Credit Ratings in Capital Regulations: Evidence From the Insurance Industry

One major lesson from the 2008-09 financial crisis that subsequently shaped in part the regulatory framework that emerged in the last decade was that downgrades of securities occurring in an interconnected financial system create a need for capital relief for regulated entities. This happens because banks’ and insurers’ capital requirements are based on credit ratings. The question is what kind of short-term and long-term incentives arise from such relief programs.… Read More »Paper Spotlight: Rethinking the Use of Credit Ratings in Capital Regulations: Evidence From the Insurance Industry

Keynote Video

The video of Thomas Philippon’s keynote presentation at Cavalcade North America 2020 can now be viewed on the Cavalcade web site.

Camelia Kuhnen Joining the RCFS Team

We are pleased to announce that Camelia Kuhnen is joining RCFS as an editor. Camelia is a professor of finance and Sarah Graham Kenan distinguished scholar at UNC Kenan-Flagler and a faculty research associate at NBER. She is an expert in household finance, neuroeconomics, and corporate finance. She is currently an associate editor at the Journal of Finance, the Review of Financial Studies, and Management Science. Camelia previously served as president… Read More »Camelia Kuhnen Joining the RCFS Team

Code Sharing Policy

The Review of Corporate Financial Studies (RCFS) is enacting a Code Sharing Policy for papers accepted for publication, which will be effective on October 1, 2020. The policy is available here. This policy reflects the commitment of the RCFS to the highest standards of quality, as we believe that the policy will help improve the reproducibility and replicability of published research and by this will support the credibility and impact… Read More »Code Sharing Policy