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Editor’s Choice 33(10)

  • RFS News

The Editor’s Choice article for 33(10) is “Deadlock on the Board” by Jason Roderick Donaldson, Nadya Malenko, and Giorgia Piacentino. You can read the paper free online.

Paper Spotlight: The COVID-19 Shock and Equity Shortfall: Firm Level Evidence from Italy

            Having learned from the financial crisis, policymakers the world over have reacted to the COVID-19 lockdowns by providing a lot of liquidity, in the form of debt, to the business sector. However, the longer it takes to make a full recovery, the greater is the danger that firms may find themselves not just illiquid in the short-run, but insolvent in the long-run. That is,… Read More »Paper Spotlight: The COVID-19 Shock and Equity Shortfall: Firm Level Evidence from Italy

Paper Spotlight: The Risk of Being a Fallen Angel and the Corporate Dash for Cash in the Midst of COVID

Governments all over the world have responded to the COVID-19 outbreak by closing down significant parts of their economies, leading to a liquidity crisis for many firms. Default risk increased because firms’ stream of cash flows took a hit, and with it firms’ rollover risk. How did firms behave in their bid to shore up their precarious liquidity positions? In the paper “The Risk of Being a Fallen Angel and… Read More »Paper Spotlight: The Risk of Being a Fallen Angel and the Corporate Dash for Cash in the Midst of COVID

Forthcoming Papers

“Economic-state Variation in Uncertainty-Yield Dynamics” by Robert Connolly, David Dubofsky, and Chris Stivers “A Tale of Two Crises: The 2008 Mortgage Meltdown and the 2020 COVID-19 Crisis” by Chester Spatt

Editor’s Choice 33(9)

The Editor’s Choice article for 33(9) is “Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales” by Sabrina T. Howell, Marina Niessner, and David Yermack. You can read the paper free online.

Forthcoming Papers

“COVID-19 and the Cross-Section of Equity Returns: Impact and Transmission” by Lorenzo Bretscher, Alex Hsu, Peter Simasek, and Andrea Tamoni “Earnings Expectations in the COVID Crisis” by Augustin Landier and David Thesmar

Forthcoming Paper

“Stock Market Information and Innovative Investment in the Supply Chain” by Lantian Liang, Ryan Williams, and Steven Chong Xiao

Paper Spotlight: Corporate Innovation and Returns

Here is an interesting fact that spans corporate finance and asset pricing: among U.S. public firms, innovation is mostly concentrated in a very small group of large corporations, and innovation “leaders” experience lower systematic risk than the “laggards.” Jan Bena and Lorenzo Garlappi, in their paper “Corporate Innovation and Returns,” investigate this fact by, first, proposing a winner-takes-all patent-race model, and then empirically showing that a firm’s expected return decreases… Read More »Paper Spotlight: Corporate Innovation and Returns

Forthcoming Paper

“A First Look at the Impact of COVID-19 on Commercial Real Estate Prices: Asset-Level Evidence” by David Ling, Chongyu Wang, and Tingyu Zhou

Itay Goldstein in ABC News

Itay Goldstein was interviewed for an ABC News story titled “Why the stock market is divorced from the pain of a pandemic economy.”