目录

The Use and Misuse of Patent Data: Issues for Finance and Beyond

 

Quick or Broad Patents? Evidence from U.S. Startups

 

Social Proximity to Capital: Implications for Investors and Firms

 

Ratings-Driven Demand and Systematic Price Fluctuations

 

The Party Structure of Mutual Funds

 

The Life Cycle Effects of Corporate Takeover Defenses

 

Outraged by Compensation: Implications for Public Pension Performance

 

A Fistful of Dollars: Financial Incentives, Peer Information, and Retirement Savings

 

Consumption Imputation Errors in Administrative Data

 

Capital Spillover, House Prices, and Consumer Spending: Quasi-Experimental Evidence from House Purchase Restrictions

 

1

The Use and Misuse of Patent Data: Issues for Finance and Beyond

原刊和作者：

Review of Financial Studies 2022年6月

Josh Lerner (Harvard University)

Amit Seru (Stanford University and Hoover Institution)

 

Abstract

 

Patents and citations are powerful tools increasingly used in financial economics (and management research more broadly) to understand innovation. Biases may result, however, from the interactions between the truncation of patents and citations and the changing composition of inventors. When aggregated at the firm level, these patent and citation biases can survive popular adjustment methods and are correlated with firm characteristics. These issues can lead to problematic inferences. We provide an actionable checklist to avoid biased inferences and also suggest machine learning as a potential new way to address these problems.

 

 

2

Quick or Broad Patents? Evidence from U.S. Startups

原刊和作者：

Review of Financial Studies 2022年6月

Deepak Hegde (New York University)

Alexander Ljungqvist (Stockholm School of Economics, Swedish House of Finance, IFN, and CEPR)

Manav Raj (New York University)

 

Abstract

 

We study the effects of patent scope and review times on startups and externalities on their rivals. We leverage the quasi-random assignment of U.S. patent applications to examiners and find that grant delays reduce a startup’s employment and sales growth, chances of survival, access to external capital, and future innovation. Delays also harm the growth, access to external capital, and follow-on innovation of the patentee’s rivals, suggesting that quick patents enhance both inventor rewards and generate positive externalities. Broader scope increases a startup’s future growth (conditional on survival) and innovation but imposes negative externalities on its rivals’ growth and innovation.

 

 

3

Social Proximity to Capital: Implications for Investors and Firms

原刊和作者：

Review of Financial Studies 2022年6月

Theresa Kuchler (New York University, NBER, and CEPR)

Yan Li (Southwestern University of Finance and Economics)

Lin Peng (Baruch College)

Johannes Stroebel ( New York University, NBER, and CEPR)

Dexin Zhou (Baruch College)

 

Abstract

 

We show that institutional investors are more likely to invest in firms from regions to which they have stronger social ties but find no evidence that these investments earn a differential return. Firms in regions with stronger social ties to locations with many institutional investors have higher valuations and liquidity. These effects are largest for small firms with little analyst coverage, suggesting that the investors’ behavior is explained by their increased awareness of firms in socially proximate locations. Our results highlight that the social structure of regions affects firms’ access to capital and contributes to geographic differences in economic outcomes.

 

 

4

Ratings-Driven Demand and Systematic Price Fluctuations

原刊和作者：

Review of Financial Studies 2022年6月

Itzhak Ben-David (The Ohio State University and the National Bureau of Economic Research)

Jiacui Li (University of Utah)

Andrea Rossi (University of Arizona)

Yang Song (University of Washington)

 

Abstract

 

We show that mutual fund ratings generate correlated demand that creates systematic price fluctuations. Mutual fund investors chase fund performance via Morningstar ratings. Until June 2002, funds pursuing the same investment style had highly correlated ratings. Therefore, rating-chasing investors directed capital into winning styles, generating style-level price pressures, which reverted over time. In June 2002, Morningstar reformed its methodology of equalizing ratings across styles. Style-level correlated demand via mutual funds immediately became muted, significantly altering the time-series and cross-sectional variation in style returns.

 

 

5

The Party Structure of Mutual Funds

原刊和作者：

Review of Financial Studies 2022年6月

Ryan Bubb (New York University)

Emiliano Catan (New York University)

 

Abstract

 

We investigate the structure of mutual funds’ corporate governance preferences as revealed by how they vote their shares in portfolio companies. We apply unsupervised learning tools from the machine learning literature to analyze mutual funds’ votes and find that a parsimonious two-dimensional model can explain the bulk of mutual fund voting. The dimensions capture competing visions of corporate governance and are related to the leading proxy advisors’ recommendations. Cluster analysis shows that mutual funds are organized into three “parties”—the Traditional Governance Party, Shareholder Reform Party, and Shareholder Protest Party—that follow distinctive philosophies of corporate governance and shareholders’ role.

 

6

The Life Cycle Effects of Corporate Takeover Defenses

原刊和作者：

Review of Financial Studies 2022年6月

William Johnson (University of Massachusetts Lowell)

Jonathan Karpoff (University of Washington)

Sangho Yi (Sogang University)

 

Abstract

 

We document that the relation between firm value and the use of takeover defenses is positive for young firms but becomes negative as firms age. This value reversal pattern reflects specific changes in the costs and benefits of takeover defenses as firms age and arises because defenses are sticky and rarely removed. Firms can attenuate the value reversal by removing defenses, but do so only when the defenses become very costly and adjustment costs are low. The value reversal explains previous mixed evidence about takeover defenses and implies that firm age proxies for takeover defenses’ heterogeneous impacts on firm value.

 

 

7

Outraged by Compensation: Implications for Public Pension Performance

原刊和作者：

Review of Financial Studies 2022年6月

Alexander Dyck (University of Toronto)

Paulo Manoel (Gatton College of Business and Economics, University of Kentucky)

Adair Morse (University of California, Berkeley and U.S. Department of the Treasury)

 

Abstract

 

Public pension boards fear inciting stakeholder outrage if they compensate internal investment managers with market-level salaries. We derive theoretical implications in an agency-portfolio-choice model motivated by inequality aversion. In a global sample, relaxing the effect of outrage on contracting leads to an average annual incremental value-added of $49 million generated through 11 bps in higher excess returns from risky assets, at the cost of $302,429 in additional compensation. Governance reforms that address outrage by reducing political appointees or requiring independent skills-based boards can increase the annual value-added. These findings are orthogonal to costly political distortions from underfunding and pay-to-play schemes.

 

 

8

A Fistful of Dollars: Financial Incentives, Peer Information, and Retirement Savings

原刊和作者：

Review of Financial Studies 2022年6月

Rob Bauer (Maastricht University and International Centre for Pension Management)

Inka Eberhardt (University of New South Wales and ARC Centre of Excellence in Population Ageing Research)

Paul Smeets (Maastricht University)

 

Abstract

 

To understand what motivates individuals to look at their pension situation and make adequate savings decisions, we conduct two field experiments with 226,946 and 257,433 pension fund participants. We find peer-information statements do not increase the rate at which individuals check their pension information, but lottery-type financial incentives do. Offering a few large prizes rather than many small prizes is most effective. However, the uptake of pension information does not lead to improved pension knowledge nor to increased self-reported savings three weeks after our intervention.

 

9

Consumption Imputation Errors in Administrative Data

原刊和作者：

Review of Financial Studies 2022年6月

Scott Baker (Northwestern University and NBER)

Lorenz Kueng (Universita della Svizzera italiana (USI Lugano), Swiss Finance Instutute(SFI), NBER, and CEPR)

Steffen Meyer (University of Southern Denmark and Danish Finance Institute (DFI))

Michaela Pagel (Columbia Business School, NBER, and CEPR)