Digests

Escaping Air Pollution: Immigrants, Students, and Spillover Effects on Property Prices Abroad
Yuk Ying Chang and Sudipto Dasgupta
Review of Finance, Volume 27, Issue 5, September 2023, Pages 1699–1741, https://doi.org/10.1093/rof/rfac070

Recent studies document that climate and environmental risks are causing major reallocations of capital and labor as people try to reduce exposure to these risks.… Read more...

Trading on Talent: Human Capital and Firm Performance
Anastassia Fedyk and James Hodson
Review of Finance, Volume 27, Issue 5, September 2023, Pages 1659–1698, https://doi.org/10.1093/rof/rfac068

How is technically-skilled human capital reflected in firm performance? We leverage a uniquely detailed employer-employee matched dataset to measure U.S.… Read more...

A Theory of the Nominal Character of Stock Securities
Bernard Dumas and Marcel Savioz
Review of Finance, Volume 27, Issue 5, September 2023, Pages 1615–1657, https://doi.org/10.1093/rof/rfac071

One would expect that stocks are perfect hedges against inflation because stocks are backed by physical assets.… Read more...

Cross-Border Bank Flows and Systemic Risk
G. Andrew Karolyi, John Sedunov and Alvaro G. Taboada
Review of Finance, Volume 27, Issue 5, September 2023, Pages 1563–1614, https://doi.org/10.1093/rof/rfad001

Cross-border bank claims increased from $7.8 trillion in 1995 to a peak of $32.9 trillion in 2007 according to the Bank for International Settlements (BIS, 2009, 2016).… Read more...

Valuing Data as an Asset
Laura Veldkamp
Review of Finance, Volume 27, Issue 5, September 2023, Pages 1545–1562, https://doi.org/10.1093/rof/rfac073

For many firms in the modern economy, their data is their most valuable asset. But how much is it worth? Columbia Professor Laura Veldkamp lays out six approaches to measure and value data.… Read more...

The Risk of Implicit Guarantees: Evidence from Shadow Banks in China
Ji Huang, Zongbo Huang, Xiang Shao
Review of Finance, Volume 27, Issue 4, July 2023, Pages 1521–1544, https://doi.org/10.1093/rof/rfac061

The Shadow banking sector creates systemic risk through its interconnectedness with commercial banks.… Read more...

Capital Gains Tax, Venture Capital, and Innovation in Start-Ups
Lora Dimitrova, Sapnoti K Eswar
Review of Finance, Volume 27, Issue 4, July 2023, Pages 1471–1519, https://doi.org/10.1093/rof/rfac057

Entrepreneurial firms supported by Venture Capital (VC) investors play an important role in innovation and productivity growth. … Read more...

Life is Too Short? Bereaved Managers and Investment Decisions
Clark Liu, Johan Sulaeman, Tao Shu, P Eric Yeung
Review of Finance, Volume 27, Issue 4, July 2023, Pages 1373–1421, https://doi.org/10.1093/rof/rfac067

A fast-growing body of research links economic agents’ personal life experiences to their investment decisions and document relations between corporate policies and various managerial characteristics including personal finance, personal traits, and personal experience.  … Read more...

Optimal Capital Structure with Stock Market Feedback
Caio Machado, Ana Elisa Pereira
Review of Finance, Volume 27, Issue 4, July 2023, Pages 1329–1371, https://doi.org/10.1093/rof/rfac056

By aggregating the views of many investors, asset prices convey information that guides firm managers in their investment decisions.… Read more...

Social Interaction in the Family: Evidence from Investors’ Security Holdings
Samuli Knüpfer, Elias Rantapuska, Matti Sarvimäki
Review of Finance, Volume 27, Issue 4, July 2023, Pages 1297–1327, https://doi.org/10.1093/rof/rfac060

Investors tend to hold the same securities as their parents. Figure I illustrates this fact using register-based data that cover the entire investor population in Finland in 2004–2008.… Read more...