RCFS News

Regulatory capital requirements for banks have been a topic of heated discussions by academicians, bankers, and policy makers for decades. Central to these discussions is how costly requiring banks to fund themselves with more equity (rather than cheaper deposits) is and how these possible regulatory costs are transmitted to bank borrowers. In a recently published RCFS paper, “How Do Capital Requirements Affect Loan Rates? Evidence from High Volatility Commercial Real… Read More »Spotlight: How Do Capital Requirements Affect Loan Rates? Evidence from High Volatility Commercial Real Estate

“The Burden of the National Debt: Evidence from Mergers and Acquisitions” by Ruchith Dissanayake, Yanhui Wu, and Huizhong Zhang “Social Change through Financial Innovation: Evidence from Donor-advised Funds” by Jillian Grennan

The dual submission decisions for the RCFS Winter Conference have been sent. If you submitted your paper as a dual submission and did not receive your decision email, please contact us.

Why do firms in the same industry often have different leverage levels? In the forthcoming paper “Optimal Capital Structure with Imperfect Competition,” Egor Matveyev and Alexei Zhdanov show that strategic interaction alone can generate this difference. The authors first exhibit a theoretical model in which two ex ante identical firms are deciding when to enter an industry and also how much debt to issue. The product price depends both on… Read More »Paper Spotlight: Optimal Capital Structure with Imperfect Competition

“Determinants of LGBTQ Corporate Policies” by Tanja Artiga Gonzalez, Paul Vincent Calluzzo, G. Nathan Dong, and Georg Granic “What’s good for women is good for science: Evidence from the American Finance Association” by Renee Adams and Michelle Lowry

                        Existing evidence shows a significant cross-sectional heterogeneity in firms’ informational environment. Smaller firms may not have any research analysts following them, thus operating in a more informationally opaque environment and, as a result, asymmetric information may allow firm insiders to profit from their superior information. But insiders may also trade not so much for profit-related reasons but to… Read More »Paper Spotlight: Corporate Transactions in Hard-to-Value Stocks

“Agency Costs and Strategic Speculation in the U.S. Stock Market” by Paolo Pasquariello

The February issue of RCFS has published! The Editor’s Choice paper is: “The Wisdom of Crowds in FinTech: Evidence from Initial Coin Offerings” Jongsub Lee, Tao Li, Donghwa Shin