{"title":"Excess Capacity, Marginal q, and Corporate Investment","authors":"GUSTAVO GRULLON, DAVID L. IKENBERRY","doi":"10.1111/jofi.13439","DOIUrl":"10.1111/jofi.13439","url":null,"abstract":"<div>\u0000 \u0000 <p>Theory posits that when managers anticipate excess capacity, average <i>q</i> becomes a biased estimator of marginal <i>q</i> as the potential for underutilizing new capital reduces the marginal benefit of investing. After correcting for this source of measurement error, the explanatory power of Tobin's <i>q</i> substantially improves in time-series and cross-sectional regressions as well as in out-of-sample tests. These findings, together with a secular erosion in capacity utilization, help explain why corporate investment rates have been declining for decades despite average <i>q</i> increasing significantly. Our analysis indicates that economic rigidities have contributed to the persistent erosion in capacity utilization.</p>\u0000 </div>","PeriodicalId":15753,"journal":{"name":"Journal of Finance","volume":"80 3","pages":"1533-1592"},"PeriodicalIF":7.6,"publicationDate":"2025-03-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143607825","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Banks, Low Interest Rates, and Monetary Policy Transmission","authors":"OLIVIER WANG","doi":"10.1111/jofi.13436","DOIUrl":"10.1111/jofi.13436","url":null,"abstract":"<div>\u0000 \u0000 <p>I study how the secular decline in interest rates affects banks' intermediation spreads and credit supply. Following a permanent decrease in rates, bank lending may rise initially but contracts in the long run. As lower rates compress deposit spreads even well above the zero lower bound, banks' retained earnings, equity, and lending fall until loan spreads have risen enough to offset the reduction in deposit spreads. A higher inflation target can support bank lending at the cost of higher liquidity premia. I find support for the model's predictions in U.S. aggregate and bank-level data.</p></div>","PeriodicalId":15753,"journal":{"name":"Journal of Finance","volume":"80 3","pages":"1379-1416"},"PeriodicalIF":7.6,"publicationDate":"2025-03-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143582570","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Intrahousehold Disagreement about Macroeconomic Expectations","authors":"DA KE","doi":"10.1111/jofi.13437","DOIUrl":"10.1111/jofi.13437","url":null,"abstract":"<p>This paper highlights the simple fact that households typically consist of multiple members who may hold divergent views, a fact that existing approaches to measuring and modeling household macroeconomic expectations largely abstract from. Using unique data on the macroeconomic expectations of both spouses, I document substantial intrahousehold disagreement about inflation, economic recessions, and stock market returns. I further show that household asset allocation decisions are shaped by disagreement between spouses about future stock returns, and a preregistered randomized survey experiment confirms the causal impact of such disagreement on portfolio choice.</p>","PeriodicalId":15753,"journal":{"name":"Journal of Finance","volume":"80 3","pages":"1647-1689"},"PeriodicalIF":7.6,"publicationDate":"2025-03-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jofi.13437","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143582571","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"In Too Deep: The Effect of Sunk Costs on Corporate Investment","authors":"MARIUS GUENZEL","doi":"10.1111/jofi.13430","DOIUrl":"10.1111/jofi.13430","url":null,"abstract":"<div>\u0000 \u0000 <p>Sunk costs are unrecoverable costs that should not affect decision making. I provide evidence that firms systematically fail to ignore sunk costs and that this leads to significant investment distortions. In fixed-exchange-ratio stock mergers, aggregate market fluctuations after parties enter into a binding merger agreement induce plausibly exogenous variation in the final acquisition cost. These quasi-random cost shocks strongly predict firms' commitment to an acquired business following deal completion, with an interquartile cost increase reducing subsequent divestiture rates by 8% to 9%. Consistent with an intrapersonal sunk cost channel, distortions are concentrated in firm-years in which the acquiring CEO is still in office.</p></div>","PeriodicalId":15753,"journal":{"name":"Journal of Finance","volume":"80 3","pages":"1593-1646"},"PeriodicalIF":7.6,"publicationDate":"2025-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143545933","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How Credit Cycles across a Financial Crisis","authors":"ARVIND KRISHNAMURTHY, TYLER MUIR","doi":"10.1111/jofi.13431","DOIUrl":"10.1111/jofi.13431","url":null,"abstract":"<div>\u0000 \u0000 <p>We analyze the behavior of credit and output in financial crises using data on credit spreads and credit growth. Crises are marked by a sharp rise in credit spreads, signaling sudden shifts in expectations. The severity of a crisis can be predicted by the extent of credit losses (spread increases) and financial sector fragility (precrisis credit growth). This interaction is a key feature of crises. Postcrisis recessions are typically severe and prolonged. Notably, precrisis spreads tend to drop to low levels while credit growth accelerates, indicating that credit supply expansions often precede crises. The 2008 crisis aligns with these patterns.</p></div>","PeriodicalId":15753,"journal":{"name":"Journal of Finance","volume":"80 3","pages":"1339-1378"},"PeriodicalIF":7.6,"publicationDate":"2025-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143545838","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
AZI BEN-REPHAEL, BRUCE I. CARLIN, ZHI DA, RYAN D. ISRAELSEN
{"title":"Uncovering the Hidden Effort Problem","authors":"AZI BEN-REPHAEL, BRUCE I. CARLIN, ZHI DA, RYAN D. ISRAELSEN","doi":"10.1111/jofi.13429","DOIUrl":"10.1111/jofi.13429","url":null,"abstract":"<p>We analyze minute-by-minute Bloomberg online status and study how the effort provision of executives in public corporations affects firm value. While executives spend most of their time doing other activities, patterns of Bloomberg usage allow us to characterize their work habits as measures of effort provision. We document a positive effect of effort on unexpected earnings and cumulative abnormal returns following earnings announcements, and a reduction in credit default swap spreads. This is robust to using exogenous weather patterns as an instrument. Long-short, calendar-time effort portfolios earn significant average daily returns. Finally, we revisit important agency issues from the literature.</p>","PeriodicalId":15753,"journal":{"name":"Journal of Finance","volume":"80 2","pages":"1261-1311"},"PeriodicalIF":7.6,"publicationDate":"2025-02-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jofi.13429","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143427265","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
W. SCOTT FRAME, RUIDI HUANG, ERICA XUEWEI JIANG, YEONJOON LEE, WILL SHUO LIU, ERIK J. MAYER, ADI SUNDERAM
{"title":"The Impact of Minority Representation at Mortgage Lenders","authors":"W. SCOTT FRAME, RUIDI HUANG, ERICA XUEWEI JIANG, YEONJOON LEE, WILL SHUO LIU, ERIK J. MAYER, ADI SUNDERAM","doi":"10.1111/jofi.13428","DOIUrl":"10.1111/jofi.13428","url":null,"abstract":"<div>\u0000 \u0000 <p>We study links between the labor market for loan officers and access to mortgage credit. Using novel data matching mortgage applications to loan officers, we find that minorities are underrepresented among loan officers. Minority borrowers are less likely to complete mortgage applications, have completed applications approved, and to ultimately take up a loan. These disparities are reduced when minority borrowers work with minority loan officers. These pairings also lead to lower default rates, suggesting minority loan officers have an informational advantage with minority borrowers. Our results suggest minority underrepresentation among loan officers reduces minority borrowers’ access to credit.</p>\u0000 </div>","PeriodicalId":15753,"journal":{"name":"Journal of Finance","volume":"80 2","pages":"1209-1260"},"PeriodicalIF":7.6,"publicationDate":"2025-02-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143393063","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Repo over the Financial Crisis","authors":"ADAM COPELAND, ANTOINE MARTIN","doi":"10.1111/jofi.13406","DOIUrl":"10.1111/jofi.13406","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper uses new data to provide a comprehensive view of repo activity during the 2007 global financial crisis. We show that activity declined much more in the bilateral segment of the market than in the tri-party segment. Surprisingly, a large share of the decline in activity is driven by repos backed by Treasury securities. Further, a disproportionate share of the decline in repo activity is connected to securities dealer's market-making activity. In particular, the evidence suggests that at least part of the decline is not driven by clients pulling away from securities dealers because of counterparty credit concerns.</p></div>","PeriodicalId":15753,"journal":{"name":"Journal of Finance","volume":"80 2","pages":"911-936"},"PeriodicalIF":7.6,"publicationDate":"2025-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143385798","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Wealth and Insurance Choices: Evidence from U.S. Households","authors":"MICHAEL J. GROPPER, CAMELIA M. KUHNEN","doi":"10.1111/jofi.13426","DOIUrl":"10.1111/jofi.13426","url":null,"abstract":"<div>\u0000 \u0000 <p>Using administrative data for 63,000 individuals across 2,500,000 person-month observations, we find that wealthier individuals have better life insurance coverage, controlling for the value of the asset insured, namely, the consumption needs of dependents. This positive wealth-insurance correlation, which is surprising given the prevailing view that wealth substitutes for insurance, persists after allowing for wealth-related differences in risk or bequest preferences, pricing, background risk, education, employment, or liquidity constraints. Our findings call for further investigation of this wealth-coverage correlation but support theories emphasizing the consumption-smoothing role of insurance across not only states of the world, but also time.</p></div>","PeriodicalId":15753,"journal":{"name":"Journal of Finance","volume":"80 2","pages":"1127-1170"},"PeriodicalIF":7.6,"publicationDate":"2025-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143072029","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
JOSEPH KALMENOVITZ, MICHELLE LOWRY, EKATERINA VOLKOVA
{"title":"Regulatory Fragmentation","authors":"JOSEPH KALMENOVITZ, MICHELLE LOWRY, EKATERINA VOLKOVA","doi":"10.1111/jofi.13423","DOIUrl":"10.1111/jofi.13423","url":null,"abstract":"<div>\u0000 \u0000 <p>Regulatory fragmentation occurs when multiple federal agencies oversee a single issue. Using the full text of the Federal Register, the government's official daily publication, we provide the first systematic evidence on the extent and costs of regulatory fragmentation. Fragmentation increases the firm's costs while lowering its productivity, profitability, and growth. Moreover, it deters entry into an industry and increases the propensity of small firms to exit. These effects arise from redundancy and, more prominently, from inconsistencies between government agencies. Our results uncover a new source of regulatory burden, and we show that agency costs among regulators contribute to this burden.</p>\u0000 </div>","PeriodicalId":15753,"journal":{"name":"Journal of Finance","volume":"80 2","pages":"1081-1126"},"PeriodicalIF":7.6,"publicationDate":"2025-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143072031","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
求助内容：
应助结果提醒方式：