Digests

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...

Precious Neighbors: The Value of Co-Locating with the Government
Jörg R Stahl
Review of Finance, Volume 27, Issue 4, July 2023, Pages 1269–1296, https://doi.org/10.1093/rof/rfac063

Firm headquarters are overwhelmingly concentrated in capital cities, more so than the rest of economic activity.… Read more...

Expanding Footprints: The Impact of Passenger Transportation on Corporate Locations
Yatang Lin, Yu Qin, Johan Sulaeman, Jubo Yan, Jialiang Zhang
Review of Finance, Volume 27, Issue 3, May 2023, Pages 1119–1154, https://doi.org/10.1093/rof/rfac049

Corporate expansions of geographic footprints may reduce its exposure to local economic shocks and allow firms to exploit potential investment opportunities, but face substantial challenges, such as higher monitoring cost and more difficult access to information.… Read more...

The Value of Employee Satisfaction in Disastrous Times: Evidence from COVID-19
Chenyu Shan, Dragon Yongjun Tang
Review of Finance, Volume 27, Issue 3, May 2023, Pages 1027–1076, https://doi.org/10.1093/rof/rfac055

We examine stock price performance during the COVID-19 to understand the value of employee satisfaction.… Read more...

Mobile Apps and Financial Decision Making
Bruce Carlin, Arna Olafsson, Michaela Pagel
Review of Finance, Volume 27, Issue 3, May 2023, Pages 977–996, https://doi.org/10.1093/rof/rfac040

Does the availability of new technology equip consumers to make better financial decisions? Ostensibly yes, if people have easier access to information, they should be able to avoid mistakes.… Read more...