Digests

How Important Are Risk-Taking Incentives in Executive Compensation?
Ingolf Dittmann, Ko-Chia Yu, Dan Zhang
Review of Finance, Volume 21, Issue 5, August 2017, Pages 1805–1846, https://doi.org/10.1093/rof/rfx019

There is an extensive discussion whether risk-taking incentives play a role in executive compensation.… Read more...

Say Pays! Shareholder Voice and Firm Performance
Vicente Cuñat, Mireia Giné, Maria Guadalupe
Review of Finance, Volume 20, Issue 5, August 2016, Pages 1799–1834, https://doi.org/10.1093/rof/rfv056

How much “voice” should shareholders have in a firm? How valuable are shareholder’s views on overall firm performance?… Read more...

Executive Compensation and Risk Taking
Patrick Bolton, Hamid Mehran, Joel Shapiro
Review of Finance, Volume 19, Issue 6, October 2015, Pages 2139–2181, https://doi.org/10.1093/rof/rfu049

Since before the financial crisis, excess risk-taking at highly levered financial institutions has been a large concern.… Read more...

“In the Path of the Storm: Does Distress Risk Cause Industrial Firms to Risk-Shift?

Kevin Aretz, Shantanu Banerjee, Oksana Pryshchepa
Review of Finance, Volume 23, Issue 6, October 2019, Pages 1115–1154, https://doi.org/10.1093/rof/rfy028>

Moderately-distressed industrial firms risk-shift upon being hit by a hurricane strike by investing into high-risk, low-value segments.… Read more...

“Forgive but Not Forget”: The Behavior of Relationship Banks When Firms Are in Distress

Larissa Schäfer
Review of Finance, Volume 23, Issue 6, October 2019, Pages 1079–1114, https://doi.org/10.1093/rof/rfy031

Relationship lending constitutes one of the most important comparative advantages of bank lending to firms.… Read more...

Governance under the Gun: Spillover Effects of Hedge Fund Activism (Editor’s choice)

Nickolay Gantchev, Oleg R Gredil, Chotibhak Jotikasthira
Review of Finance, Volume 23, Issue 6, October 2019, Pages 1031–1068, https://doi.org/10.1093/rof/rfy035

The lead article in Volume 23, Issue 6 of the Review of Finance is Governance under the Gun: Spillover Effects of Hedge Fund Activism by Nickolay Gantchev, Oleg R Gredil, Chotibhak Jotikasthira.… Read more...

Social Norms and Household Savings Rates in China

Yvonne Jie Chen, Zhiwu Chen, Shijun He
Review of Finance, Volume 23, Issue 5, September 2019, Pages 961–991, https://doi.org/10.1093/rof/rfy029

Can social norms affect households’ savings behaviors? Research findings in Social Norms and Household Savings Rates in China suggest that the filial piety social norms, which argue that children have unconditional obligations to their elderly parents, make households save less.… Read more...

How Does Learning and Education Help to Overcome the Disposition Effect?

Tarvo Vaarmets, Kristjan Liivamägi, Tõnn Talpsepp
Review of Finance, Volume 23, Issue 4, July 2019, Pages 801–830,https://doi.org/10.1093/rof/rfy006

The ability of investors to learn from their own mistakes is an important factor that can help prevent them taking short-sighted or biased investment decisions.… Read more...

The Transmission of Bank Liquidity Shocks: Evidence from House Prices
H Özlem Dursun-de Neef
Review of Finance, Volume 23, Issue 3, May 2019, Pages 629–658, https://doi.org/10.1093/rof/rfy001

The financial crisis of 2007-2009 led to a negative liquidity shock that affected many banks.… Read more...

Renegotiation Frictions and Financial Distress Resolution: Evidence from CDS Spreads
Murillo Campello; Tomislav Ladika; Rafael Matta
Review of Finance, Volume 23, Issue 3, May 2019, Pages 513–556, https://doi.org/10.1093/rof/rfy021

Financially distressed firms often attempt to renegotiate with creditors outside of bankruptcy court, to forgo the deadweight costs of drawn-out legal battles.… Read more...