Digests

More is Less: Publicizing Information and Market Feedback
Andrew Bird, Stephen A Karolyi, Thomas G Ruchti, Phong Truong
Review of Finance, Volume 25, Issue 3, May 2021, Pages 745–775, https://doi.org/10.1093/rof/rfaa028

Financial markets are important to the real economy (Hayek 1945; Baumol 1965).… Read more...

Bank of Japan Equity Purchases: The (Non-)Effects of Extreme Quantitative Easing
Ben Charoenwong, Randall Morck, Yupana Wiwattanakantang
Review of Finance, Volume 25, Issue 3, May 2021, Pages 713–743, https://doi.org/10.1093/rof/rfaa029

With the onset of the Covid-19 pandemic, the financial press has reported that central banks around the world such as the European Central Bank and the Bank of Israel have contemplated buying equity to further boost economic growth.… Read more...

Intellectual Property Protection and Financial Markets: Patenting versus Secrecy
Nishant Dass, Vikram Nanda, Haemin Dennis Park, Steven Chong Xiao
Review of Finance, Volume 25, Issue 3, May 2021, Pages 669–711, https://doi.org/10.1093/rof/rfaa033

To create value, firms in technology–intensive industries must crucially protect their intellectual property (IP).… Read more...

The Externalities of Corruption: Evidence from Entrepreneurial Firms in China
Mariassunta Giannetti, Guanmin Liao, Jiaxing You, Xiaoyun Yu
Review of Finance, Volume 25, Issue 3, May 2021, Pages 629–667, https://doi.org/10.1093/rof/rfaa038

Firms around the world attempt to obtain political favors, such as land and other natural resources, government contracts, lenient taxation, relaxed regulatory oversight, or generous financing.… Read more...

Learning from Feedback: Evidence from New Ventures
Sabrina T Howell
Review of Finance, Volume 25, Issue 3, May 2021, Pages 595–627, https://doi.org/10.1093/rof/rfab006

Why do individuals persist in entrepreneurship? One important dimension of this question – which goes back at least to Knight (1921) – is the degree to which entrepreneurs learn in the sense of type revelation about whether to continue or abandon the venture.… Read more...

What Drives Global Lending Syndication? Effects of Cross-Country Capital Regulation Gaps
Janet Gao, Yeejin Jang
Review of Finance, Volume 25, Issue 2, March 2021, Pages 519–559, https://doi.org/10.1093/rof/rfaa019

The syndicated lending market is highly globalized, whereby banks participate extensively in syndicates organized by banks from other countries.… Read more...

What Constrains Liquidity Provision? Evidence from Institutional Trades
Efe Çötelioglu, Francesco Franzoni, Alberto Plazzi
Review of Finance, Volume 25, Issue 2, March 2021, Pages 485–517, https://doi.org/10.1093/rof/rfaa016

In financial markets, buy-side institutions such as mutual funds and hedge funds play an essential role in providing liquidity to satisfy other investors’ demands for immediate execution of orders.… Read more...

Improving Access to Banking: Evidence from Kenya
Franklin Allen, Elena Carletti, Robert Cull, Jun QJ Qian, Lemma Senbet, Patricio Valenzuela
Review of Finance, Volume 25, Issue 2, March 2021, Pages 403–447, https://doi.org/10.1093/rof/rfaa024

Many Sub-Saharan African countries still face severe financial development gaps in terms of access to financial services.… Read more...

The Persistence of Fee Dispersion among Mutual Funds
Michael J Cooper, Michael Halling, Wenhao Yang
Review of Finance, Volume 25, Issue 2, March 2021, Pages 365–402, https://doi.org/10.1093/rof/rfaa023

The neoclassical model of mutual funds (Berk and van Binsbergen, 2015) argues that percentage fees are irrelevant, as fund size will adjust in equilibrium such that net alphas are equal to zero.… Read more...

First Impression Bias: Evidence from Analyst Forecasts
David Hirshleifer, Ben Lourie, Thomas G Ruchti, Phong Truong
Review of Finance, Volume 25, Issue 2, March 2021, Pages 325–364, https://doi.org/10.1093/rof/rfaa015

We present the tests for first impression bias among professionals in the field.… Read more...