2022

Finance Leases: In the Shadow of Banks
Jeffery (Jinfan) Chang, Ting Yang, Yanping Shi
Review of Finance, Volume 26, Issue 3, May 2022, Pages 721–749, https://doi.org/10.1093/rof/rfab037

Shadow banking involves credit intermediation activities outside the traditional banking system. In contrast to the United States and Europe, where shadow banking activities have been under ever-increasing scrutiny since the 2008 subprime mortgage crisis, China has witnessed tremendous shadow banking growth since that crisis.… Read more...

Do Place-Based Policies Promote Local Innovation and Entrepreneurship?
Xuan Tian, Jiajie Xu
Review of Finance, Volume 26, Issue 3, May 2022, Pages 595–635, https://doi.org/10.1093/rof/rfab029

Technological innovation and entrepreneurial activities are key drivers of a nation’s economic growth. Intensive studies have explored a variety of economic, institutional, and social determinants that could promote innovation and entrepreneurial activities.… Read more...

Investor Attention and Asset Pricing Anomalies
Lei Jiang, Jinyu Liu, Lin Peng, Baolian Wang
Review of Finance, Volume 26, Issue 3, May 2022, Pages 563–593, https://doi.org/10.1093/rof/rfab032

In this paper, Jiang, Liu, Peng, and Wang investigate the relationship between investor attention and financial market anomalies.… Read more...

Mortgage Debt, Hand-to-Mouth Households, and Monetary Policy Transmission
Sumit Agarwal, Yongheng Deng, Quanlin Gu, Jia He, Wenlan Qian, Yuan Ren
Review of Finance, Volume 26, Issue 3, May 2022, Pages 487–520, https://doi.org/10.1093/rof/rfac011

Many countries have witnessed a tremendous increase in house prices fuelled by mortgage debt accumulation, which in turn imposes a substantial financial burden on households.… Read more...

Cancer and Portfolio Choice: Evidence from Norwegian Register Data
Trond Døskeland, Jens Soerlie Kvaerner
Review of Finance, Volume 26, Issue 2, March 2022, Pages 407–442, https://doi.org/10.1093/rof/rfab022

We examine the effect of a health shock on personal investment decisions. The health shock is a cancer diagnosis.… Read more...

The Distress Anomaly is Deeper than You Think: Evidence from Stocks and Bond
Doron Avramov, Tarun Chordia, Gergana Jostova, Alexander Philipov
Review of Finance, Volume 26, Issue 2, March 2022, Pages 355–405, https://doi.org/10.1093/rof/rfab025

This paper provides new evidence on the distress anomaly based on a comprehensive sample of stocks and corporate bonds.… Read more...

The Costs and Benefits of Liquidity Regulations: Lessons from an Idle Monetary Policy Too
Christopher J Curfman, John Kandrac
Review of Finance, Volume 26, Issue 2, March 2022, Pages 319–353, https://doi.org/10.1093/rof/rfab024

Liquidity regulations implemented after the global financial crisis had a transformative effect on the financial system.… Read more...

Third-Party Credit Guarantees and the Cost of Debt: Evidence from Corporate Loans
Mehdi Beyhaghi
Review of Finance, Volume 26, Issue 2, March 2022, Pages 287–317, https://doi.org/10.1093/rof/rfab012

A recent stream of literature highlights the importance of the assets that firms own in their financing decisions.… Read more...

Momentum, Reversals, and Investor Clientele
Andy C W Chui, Avanidhar Subrahmanyam, Sheridan Titman
Review of Finance, Volume 26, Issue 2, March 2022, Pages 217–255, https://doi.org/10.1093/rof/rfac010

A large and growing literature uncovers cross-sectional return predictability based on past price moves. There is extensive evidence for what is known as the momentum effect, which is the tendency of stocks that performed well in the previous six to 12 months to perform well in the next six to 12 months.… Read more...

Special Repo Rates and the Cross-Section of Bond Prices: The Role of the Special Collateral Risk Premium
Stefania D’Amico, N Aaron Pancost
Review of Finance, Volume 26, Issue 1, February 2022, Pages 117 – 162, https://doi.org/10.1093/rof/rfab028

Although the market for nominal US Treasury bonds is very large and liquid, previous research has identified a number of cases in which assets with almost identical payoffs carry significantly different prices, including the on-the-run premium, the TIPS-Treasury bond puzzle, and the note-bond spread.… Read more...