Topic: Corporate Finance
With Bonds, the Past Can Be Prologue
Patterns in corporate bond returns include abrupt short-term performance reversals and “momentum” waves that persist
Why Do Banks With Little Skin in the Game Still Monitor Borrowers?
Tax policy change triggers an incentive for lenders to be more aggressive
When the Fed Taps the Brakes, Not All Banks Slow Down
Some lenders’ balance sheets are less affected by a rising federal funds rate
When Lenders Put a Muzzle on Borrowers
Companies hide from shareholders information about loans — more than likely to appease banks
What Limited Attention Does to Efficient Market Theory
Stocks don’t react to news immediately because, well, we’re human
What Drives LBO Fever? More Than Just Cheap Loans
Private equity investors weigh the total cost of capital — not just debt, but equity as well — when pursuing buyouts
Upside Earnings Surprise Issued Late: Signal of Possible Manipulation
Companies that take longer than expected to announce results may be buying time for accounting tricks
The Debt Market’s Indirect Antidote to ESG Greenwashing
Loans that include a sweetener or penalty tied to ESG performance seem to induce more honest reporting
Sorting Out Conflicts of Interest in Commercial Loan Syndicates
Syndicate voting rules reflect varying levels of trust and familiarity
Might More Lobbying Groups, Rather than Fewer, Be Good for Industry and the Public?
Make the influence industry more competitive, a theoretical study suggests
Low-Quality Earnings: The Uncoupling of Stock Price from Fundamentals
Studying Chinese A and B shares reveals investor uncertainty
Looming Risk to Financial System: $1 Trillion in Commercial Loan Pools
Known as collateralized loan obligations, their aim is actually to reduce risk
Loan Pool Covenants, Meant to Contain Risk, Can Instead Spread It
Forced sale of assets could stretch illiquidity across industries
Less Leveraged Than the Competition: Ready to Snag Distressed Assets in a Recession
When bad times hit, highly indebted companies often have to sell operations and equipment at fire-sale prices
In Some Industries, Are Corporate Combinations Actually Good for Consumers?
A model focuses on startups that, while developing innovative products, seek a lucrative buyout