Publications

06 Jun 2013
Working Paper Summaries

Do Strict Capital Requirements Raise the Cost of Capital? Banking Regulation and the Low Risk Anomaly

Keywords: by Malcolm Baker & Jeffrey Wurgler; Financial Services; Financial Services

1999
Chapter

The Pricing of US Catastrophe Reinsurance

By: K. Froot and P. O'Connell

Keywords: Financial Markets; Catastrophe Risk; Corporate Finance; Cost Of Capital; Banking And Insurance; Asset Pricing; Hedging; Banking; Insurance; Natural Disasters; Policy; Risk Management; Insurance Industry; United States

fall 2008
Article

The Intermediation of Financial Risks: Evolution in the Catastrophe Reinsurance Market

By: Kenneth A. Froot

In this paper, I provide evidence concerning the imperfections in the reinsurance market. I try to get at some of the root causes of these imperfections, e.g., the behavior of ratings firms and the agency problems associated with the corporate form of ownership. I also... View Details

Keywords: Catastrophe Risk; Corporate Finance; Banking And Insurance; Hedging; Banking; Financial Markets; Insurance; Policy; Risk Management; Natural Disasters; Cost of Capital; Asset Pricing; Insurance Industry

Research Summary

The Real Effects of Capital Controls: Financial Constraints, Exporters, and Firm Investment

By: Laura Alfaro

In aftermath of the global financial crisis of 2008–2009, emerging-market governments have increasingly restricted foreign capital inflows. The data show a statistically significant drop in cumulative abnormal returns for Brazilian firms following capital control... View Details

2025
Working Paper

The Hidden Costs of Working Multiple Jobs: Implications for Spending Behavior and Wellbeing

By: Paige Tsai and Ryan W. Buell

Problem definition: Amidst inflation, rising costs of living, an explosion in remote and gig working opportunities, and an increase in the part-time labor mix in economies around the world, it is becoming evermore commonplace for people to earn labor income... View Details

Keywords: Behavioral Operations; Employee Behavior; Job Design and Levels; Personal Finance; Well-being; Happiness; Satisfaction; Wages

SSRN

27 Sep 2013
Working Paper Summaries

The Impact of Conformance and Experiential Quality on Healthcare Cost and Clinical Performance

Keywords: by Claire Senot, Aravind Chandrasekaran, Peter T. Ward & Anita L. Tucker; Health

August 2004 (Revised February 2008)
Case

Land Securities Group (A): Choosing Cost or Fair Value on Adoption of IFRS

A U.K. real estate firm, required to adopt international accounting standards (IAS) by 2005, must change the reporting of its primary asset (investment property) from the revaluation model under U.K. GAAP to either the cost or fair-value model under IAS. This would... View Details

Keywords: Cost Accounting; Fair Value Accounting; Financial Reporting; International Accounting; Investment; Standards; Real Estate Industry; Europe; United Kingdom

Educators

Purchase

June 2023
Article

The Salary Taboo: Privacy Norms and the Diffusion of Information

By: Zoë Cullen and Ricardo Perez-Truglia

The limited diffusion of salary information has implications for labor markets, such as wage discrimination policies and collective bargaining. Access to salary information is believed to be limited and unequal, but there is little direct evidence on the sources of... View Details

Keywords: Search Costs; Privacy; Norms; Compensation; Financial Industry; Field Experiment; Knowledge Dissemination; Equality and Inequality; Gender; Compensation and Benefits; Societal Protocols

Research Summary

The Role of Financial and Information Intermediaries in the Capital Markets

Hutton's research investigates the role of financial analysts and short sellers in the pricing of equity securities. Recently, Hutton examines (with Patricia Dechow and Richard Sloan) the role of sell-side analysts' earnings forecasts in the pricing of common equity... View Details

February 2020
Article

Why Prosocial Referral Incentives Work: The Interplay of Reputational Benefits and Action Costs

By: Rachel Gershon, Cynthia Cryder and Leslie K. John

While selfish incentives typically outperform prosocial incentives, in the context of customer referral rewards, prosocial incentives can be more effective. Companies frequently offer “selfish” (i.e., sender-benefiting) referral incentives, offering customers financial... View Details

Keywords: Incentives; Prosocial Behavior; Judgment And Decision-making; Referral Rewards; Motivation and Incentives; Consumer Behavior; Decision Making

2013
Working Paper

FIN Around the World: The Contribution of Financing Activity to Profitability

By: Russell Lundholm, George Serafeim and Gwen Yu

We study how the availability of domestic credit influences the contribution that financing activities make to a firm's return on equity (ROE). Using a sample of 51,866 firms from 69 countries, we find that financing activities contribute more to a firm's ROE in... View Details

Keywords: Domestic Credit; Return Of Equity; Corporate Performance; Financial Statement Analysis; Financial Statements; Valuation; Cost of Capital; Asset Pricing; Economic Growth

SSRN

January 1997
Background Note

Assigning Support Department Expenses to Production Cost Centers (B): Flexible Budgets

By: Robert S. Kaplan

Describes the use of flexible budgets to assign support/service department costs to production cost centers. View Details

Keywords: Cost; Financial Strategy; Budgets and Budgeting

January 1998
Article

Risk Management, Capital Budgeting and Capital Structure Policy for Financial Institutions: An Integrated Approach

By: K. A. Froot and J. Stein

Keywords: Catastrophe Risk; Corporate Finance; Cost Of Capital; Banking And Insurance; Asset Pricing; Hedging; Banking; Decision Choice And Uncertainty; Financial Markets; Insurance; Policy; Risk Management; Natural Disasters; Insurance Industry

Research Summary

Financial reporting quality and its consequences

Does reporting quality have real economic consequences? Professor Yu addresses this question in her research, which examines the channels through which reporting quality affects the behavior of economic agents, namely managers and investors. Her particular focus is... View Details

2021
Working Paper

No-fault Default, Chapter 11 Bankruptcy, and Financial Institutions

By: Robert C. Merton and Richard T. Thakor

This paper analyzes the costs and benefits of a no-fault-default debt structure as an alternative to the typical bankruptcy process. We show that the deadweight costs of bankruptcy can be avoided or substantially reduced through no-fault-default debt, which permits a... View Details

Keywords: No-fault Default; Chapter 11; Insolvency and Bankruptcy; Borrowing and Debt; Governing Rules, Regulations, and Reforms; Financial Institutions; Contracts

September 2007
Supplement

Silic (B): Choosing Cost or Fair Value on Adoption of IFRS

By: David F. Hawkins, Vincent Marie Dessain and Andrew Barron

Keywords: Cost; Value; Standards; Financial Reporting

Purchase

2013
Working Paper

Do Strict Capital Requirements Raise the Cost of Capital? Banking Regulation and the Low Risk Anomaly

By: Malcolm Baker and Jeffrey Wurgler

Minimum capital requirements are a central tool of banking regulation. Setting them balances a number of factors, including any effects on the cost of capital and in turn the rates available to borrowers. Standard theory predicts that, in perfect and efficient capital... View Details

Keywords: Risk and Uncertainty; Cost of Capital; Capital Markets; Banks and Banking; Banking Industry; United States