Empirical research typically builds on the findings of prior studies. New tests rely on previously identified determinants of the outcome variable studied as controls. Authors of a forthcoming RCFS paper, “Disregarding the Shoulders of Giants: Inferences from Innovation Research,” David Reeb and Wanli Zhao observe this process is often ad hoc. Using past research on corporate innovation as a platform, authors show that only a small subset of proposed determinants… Read More »Paper Spotlight: Disregarding the Shoulders of Giants: Inferences from Innovation Research

“Firm listing status, firm size, and the financing of investment” by Mathias Lé and Frederic Vinas

            Agency problems between managers and shareholders affect both investment and capital structure decisions at firms. In “Agency Conflicts and Investment: Evidence from a Structural Estimation,” Redouane Elkamhi, Daniel Kim, Chanik Jo, and Marco Salerno develop and structurally estimate a dynamic model to understand the real and financial implications of such agency problems. The manager in the model is pulled into two different directions. On… Read More »Paper Spotlight: Agency Conflicts and Investment: Evidence from a Structural Estimation

“Competing for Deal Flow in Local Mortgage Markets” by Darren James Aiello, Mark Garmaise, and Gabriel Natividad