“The Macroeconomics of Corporate Debt” by Markus K. Brunnermeier and Arvind Krishnamurthy “The risk of being a fallen angel and the corporate dash for cash in the midst of COVID” by Viral Acharya and Sascha Steffen “The COVID-19 Shock and Equity Shortfall: Firm-level Evidence from Italy” by Elena Carletti, Tommaso Oliviero, Marco Pagano, Loriana Pelizzon, and Marti G. Subrahmanyam
“The Value Premium” by Eugene F. Fama and Kenneth R. French
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.
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.
The Editor’s Choice article for 33(8) is “Uncertainty and Economic Activity: A Multicountry Perspective” by Ambrogio Cesa-Bianchi, M. Hashem Pesaran, and Alessandro Rebucci. You can read the paper free online.
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
The Review of Asset Pricing Studies seeks to occasionally publish high quality surveys of topics in asset pricing. Interested authors should send a brief proposal to Executive Editor Jeffrey Pontiff. All areas of asset pricing will be considered. If other surveys on the same topic have already been published, the proposal should note the potential marginal contribution.
“Institutional Investors and Hedge Fund Activism” by Simi Kedia, Laura Starks, and Xianjue Wang
“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
“How Does Household Spending Respond to an Epidemic? Consumption During the 2020 COVID-19 Pandemic” by Scott Ross Baker, Robert Farrokhnia, Steffen Meyer, Michaela Pagel, and Constantine Yannelis “CDS Momentum: Slow Moving Credit Ratings and Cross-Market Spillovers” by Andy Naranjo, Jongsub Lee, and Stace Sirmans “The Unprecedented Stock Market Reaction to COVID-19” by Scott Ross Baker, Nicholas Bloom, Steven J Davis, Kyle Kost, Marco Sammon, and Tasaneeya Viratyosin
