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Financial markets and economic growth Journal of Applied Corporate Finance Pub Date : 2024-02-29 Merton H. Miller
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The role of organizational design and culture in the value-based healthcare movement: The case of the Cleveland Clinic Journal of Applied Corporate Finance Pub Date : 2024-01-16 James K. Stoller, Bruce D. Lindsay, Don Chew
INTRODUCTION The Cleveland Clinic was founded in 1921 as a multi-specialty group practice staffed and run by four physicians who had served in a military hospital in France during World War I. The four men—Drs. Crile, Lower, Bunts, and Philips—were inspired by a vision of a healthcare system in which physicians “acted as a unit,” collaborating in ways that departed radically from the back-then norm
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Behind schedule: The corporate effort to fulfill climate obligations Journal of Applied Corporate Finance Pub Date : 2023-06-12 Joseph E. Aldy, Patrick Bolton, Marcin Kacperczyk, Zachery M. Halem
INTRODUCTION The 2015 Paris Agreement represented the first multilateral agreement to acknowledge and support efforts by so-called non-state actors, including corporations, to cut their greenhouse gas emissions. Moreover, the goals and structure of the Paris Agreement—focused on limiting warming to well below 2°C relative to pre-industrial levels and allowing for national governments to set voluntary
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Bet on innovation, not ESG metrics, to lead the net zero transition Journal of Applied Corporate Finance Pub Date : 2023-06-07 Bartley J. Madden
In 1987, the United Nations defined sustainable development as meeting the needs of present generations without compromising the needs of future generations. Today, the top priority for sustainability is the transition to Net Zero—that is, net zero greenhouse gas (GHG) emissions. Carbon dioxide, a GHG, is a major contributor to global warming. In the pages that follow, I provide three different perspectives
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The Credit Suisse CoCo wipeout: Facts, misperceptions, and lessons for financial regulation Journal of Applied Corporate Finance Pub Date : 2023-06-05 Patrick Bolton, Wei Jiang, Anastasia Kartasheva
INTRODUCTION The response to the global financial crisis (GFC) of 2007–2008 has famously been described as the problem of too-big-to-fail.1 In the middle of a worsening crisis, financial regulators had to recognize that bank bailouts were the only way to stabilize financial markets. One of the two priorities of regulatory reforms post-crisis was to address the too-big-to-fail problem by introducing
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Lessons for ESG activists: The case of Sainsbury's and the living wage Journal of Applied Corporate Finance Pub Date : 2023-06-01 Tom Gosling
Sainsbury's, one of the UK's large supermarket chains, found itself in the crosshairs of ESG activism in 2022. That was when ShareAction, a well-known responsible investment NGO, filed the first Living Wage resolution in the UK.1 The proposal was this: To promote the long-term success of the Company, given developing expectations on rewarding key workers, the opportunities and risks associated with
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Does board independence matter in companies with a controlling shareholder? Journal of Applied Corporate Finance Pub Date : 2023-04-30 Jay Dahya, Orlin Dimitrov, John J. McConnell
Studies have reported valuation discounts for publicly traded companies based in countries that provide weak legal protection for minority shareholders.1 Such discounts are often attributed to the ability of controlling shareholders to extract “private benefits” that come at the expense of minority shareholders. Without sufficient legal deterrents, controlling shareholders have both the incentive and
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A survey of US corporate financing innovations: 1970–1997 Journal of Applied Corporate Finance Pub Date : 2023-04-28 Kenneth A. Carow, Gayle R. Erwin, John J. McConnell
INTRODUCTION An appropriate subtitle for this article might well be “The Evolution Lives! Long Live the Evolution!” Previous articles in this journal have described innovations in financial security design and the forces that give rise to such innovations.1 In this article, we expand upon and update those articles by documenting changes over the past 30 years in the way US public corporations finance
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CEOs, abandoned acquisitions, and the media Journal of Applied Corporate Finance Pub Date : 2023-04-28 Baixiao Liu, John J. McConnell
Do the media play a role in corporate governance and, if so, how? Those questions are broad and their answers have broad implications. This is especially so in countries such as the U.S. that are characterized by a free and vigorous business press. By corporate governance, we mean the traditional role of corporate governance in monitoring corporate management to ensure that top managers act in shareholders’
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Vanderbilt university roundtable on the capital structure puzzle Journal of Applied Corporate Finance Pub Date : 2023-04-26 Stewart Myers, John McConnell, Alice Peterson, Dennis Soter, Joel Stern
VANDERBILT UNIVERSITY ROUNDTABLE ON THE CAPITAL STRUCTURE PUZZLE April 2, 1998 Nashville, Tennessee
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Do investment banks have incentives to help clients make value-creating acquisitions? Journal of Applied Corporate Finance Pub Date : 2023-04-24 John J. McConnell, Valeriy Sibilkov
To many observers, it has long seemed evident that there is a potential conflict between the interests of the investment bankers that do M&A advisory work and the shareholders of the acquiring companies they advise. The potential conflict arises because advisory contracts are structured to reward the bankers for “getting deals done,” with much less reward for deals that do not get done. In other words
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MIPS, QUIPS, and TOPrS: Old wine in new bottles Journal of Applied Corporate Finance Pub Date : 2023-04-24 Arun Khanna, John J. McConnell
INTRODUCTION Monthly Income Preferred Stock (MIPS), Quarterly Income Preferred Stock (QUIPS), and Trust Originated Preferred Stock (TOPrS) all carry the title of preferred stock. As in the case of other forms of preferred stock, if the issuer fails to make a promised periodic payment, investors cannot force the issuer into bankruptcy. Unlike conventional preferred stock, however, when the promised
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Prepacks as a mechanism for resolving financial distress: The evidence Journal of Applied Corporate Finance Pub Date : 2023-04-24 John J. McConnell, Ronald C. Lease, Elizabeth Tashjian
INTRODUCTION Prepacked bankruptcies, or “prepacks,” are considered a hybrid form of distressed restructuring because they share certain characteristics with both of the widely used alternatives for reorganizing distressed companies—out-of-court restructurings (OCRs) and traditional Chapter 11 reorganizations. Prepacks are similar to OCRs in that creditors and the debtor agree to the major terms of
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The income bond puzzle Journal of Applied Corporate Finance Pub Date : 2023-04-24 John J. McConnell, Gary G. Schlarbaum
Income bonds should be used more extensively by corporations than they are. Their avoidance apparently arises from a mere accident of economic history–namely, that they were first employed in quantity in connection with railroad reorganizations, and hence they have been associated from the start with financial weakness and poor investment status. But the form itself has several practical advantages…
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The economics of prepackaged bankruptcy Journal of Applied Corporate Finance Pub Date : 2023-04-24 John J. McConnell, Henri Servaes
INTRODUCTION A new kind of bankruptcy has emerged in the last few years. It can be thought of as a “hybrid” form—one that attempts to combine the advantages (and exclude the disadvantages) of the two customary methods of reorganizing troubled companies: workouts and bankruptcy. In a workout, a debtor that has already violated its debt covenants (or is about to do so) negotiates a relaxation or restructuring
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Investor base, cost of capital, and new listings on the NYSE Journal of Applied Corporate Finance Pub Date : 2023-04-24 Gregory B. Kadlec, John J. McConnell
INTRODUCTION Corporate managers often justify certain fairly common corporate practices by describing them as attempts to enlarge their company's investor base. These practices include stock splits, the hiring of shareholder relations officers, meetings with security analysts, the issuance of ADRs, and the listing of their company's shares on major domestic and international stock exchanges. Consider
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The origin of LYONs: A case study in financial innovation Journal of Applied Corporate Finance Pub Date : 2023-04-24 John J. McConnell, Eduardo S. Schwartz
Viewed at a distance and with scholarly detachment, financial innovation is a simple process. Some kind of “shock”—say, a sudden increase in interest rates volatility or a significant regulatory change – is introduced into the economic system. The shock alters the preferences either investors or issuers in such a way that there then exists no financial instrument capable of satisfying a newly-created
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Corporate culture: The interview evidence Journal of Applied Corporate Finance Pub Date : 2023-02-23 John R. Graham, Jillian A. Grennan, Campbell R. Harvey, Shivaram Rajgopal
INTRODUCTION Culture is given credit for some of the greatest business successes and blamed for some of the biggest failures. Policymakers often point to dysfunctional corporate culture in banking as a first-order contributor to the recent financial crisis.1 Several books identify culture as a key driver of Google's success.2 The corporate culture at VW, Toshiba, and Wells Fargo are recent examples
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A Message from the Editor Journal of Applied Corporate Finance Pub Date : 2022-09-29 Don Chew
In what might be called the first principle of modern corporate finance, the primary source and main driver of a company's long-run value is said to be its strategy and what finance academics refer as the corporate investment decision—in brief, what corporate managers choose to do with the capital their investors have entrusted them with. Having committed themselves to a strategy and business plan
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Stewart Myers and the MIT School of Real Options and Capital Structure Journal of Applied Corporate Finance Pub Date : 2022-09-29 Don Chew, Bennett Stewart
The thinking and writings of America's most accomplished living corporate finance scholar, MIT professor Stewart Myers, are presented as “a life in three Acts.” Starting with Stew's collaboration with Stanford's Alex Robichek on capital structure and valuation in Act I, the scene then shifts to the subjects of corporate strategy and “real options,” and their import for both valuation and investment
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Strategic Financial Management Part II: Seasoned Equity Offerings, Corporate Payout Policy, and the Case of Regulated Utilities Journal of Applied Corporate Finance Pub Date : 2022-09-29 Fangjian Fu, Clifford Smith
As discussed in the predecessor to this article that came out roughly two years ago, each of today's three dominant academic theories of capital structure has trouble explaining the financing behavior of public companies making seasoned equity offerings (SEOs) of their own stock. In conflict with the tradeoff theory, the authors' analysis of some 7,000 SEOs by U.S. industrial companies during the period
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Collateralized Loan Obligations: A Primer Journal of Applied Corporate Finance Pub Date : 2022-09-29 John Martin, Akin Sayrak
In recent years, collateralized loan obligations, or CLOs, have become the largest nonbank lender in the U.S. This added source of financing, which lies outside the purview of banking regulation, has given rise to the concept of a “shadow banking system.” And the lack of transparency and regulatory oversight of CLOs and shadow banking have led to concern that this growing market might contribute to
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Will Blockchain Be a Big Deal? Reasons for Caution Journal of Applied Corporate Finance Pub Date : 2022-09-29 Craig Pirrong
The initial enthusiasm for implementing blockchain in financial markets has been dampened considerably by its collision with economic realities. Though the author warns against avoiding the Panglossian trap of viewing ours as the best of all possible worlds, he reminds us that financial institutions have evolved and won the trust of many consumers in a competitive environment as means of economizing
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Texas Private Equity Conference 2022: Session I: The State of and Prospects for U.S. Private Equity Journal of Applied Corporate Finance Pub Date : 2022-09-29 Rich Hall, Kewsong Lee
Kewsong Lee, CEO of the Carlyle Group was interviewed by Rich Hall, Chief Investment Officer of UTIMCO. From his vantage point at Carlyle overseeing 300 portfolio companies, Lee sees US economic growth as positive but decelerating while inflation continues to be high. So far, Carlyle-owned firms have been able to pass through higher costs to their consumers although the expected Fed tightening would
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Texas Private Equity Conference 2022: Session II: The Role of Private Equity and Debt in Reshaping the Ownership, Valuation, and Governance of Private Companies Journal of Applied Corporate Finance Pub Date : 2022-09-29 Xavier Sztejnberg, Carlos Whitaker, Vanessa Roberts, Phil Canfield, Jeffrey W. Kramer
Although the phenomenal growth of private equity investments into a $2 trillion market has been widely recognized, little is known about the recent rise of the private credit market, which has doubled to over $1 trillion in the past five years and generated annual returns of close to 9% during the past 15 years. In this panel, three private and public debt professionals discuss the interplay between
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Texas Private Equity Conference 2022: Session III: Space: The Final Investing Frontier Journal of Applied Corporate Finance Pub Date : 2022-09-29 Brant Arseneau, David Anderman, Gabe Dominocielo, Matthew Kuta, Ken Wiles
In this final panel at the Texas Private Equity Conference, four active investors discuss the commercial opportunities opened up by the privatization of space exploration. With the cost of launching rockets into space and putting satellites into orbit dropping sharply, unit economics are dropping quickly, much faster than even the industry expected. Reusable rockets in particular are changing the economics
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Should Private Companies Have the Same SEC Disclosure Requirements as Public Companies? A Debate Journal of Applied Corporate Finance Pub Date : 2022-09-29 Ludovic Phalippou, Gregory Brown
As with any important policy decision, the question of mandated disclosure for private equity must weigh the potential benefits against the costs of implementation. At the 2022 Private Equity Research Symposium hosted by Oxford University, Oxford's Ludovic Phalippou and UNC-Chapel Hill's Gregory Brown debated the merits of greater mandated financial reporting for private companies. Phalippou's arguments
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After the Tax Breaks Fade: What Executives Need to Know About Transfer Pricing Journal of Applied Corporate Finance Pub Date : 2022-09-29 S. David Young
Transfer pricing policies have traditionally been driven by a desire to limit taxes by shifting profits from high- to low-tax jurisdictions. Though such practices will no doubt continue, recent changes in public policy, most notably the influence of the OECD's Base Erosion and Profit Shifting initiative, have rendered tax savings more difficult to achieve. But also working in this direction is the
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Plowback in the Constant-Growth DCF Model Journal of Applied Corporate Finance Pub Date : 2022-09-29 James L. Canessa, Gregg A. Jarrell
Valuation experts have recommended using the finance formula equating real growth in net cash flows (g) to the plowback rate (k) times the real return on investment (r) as a more reasonable basis for estimating plowback in the steady-state perpetuity period of the standard value-driver DCF formula. Unfortunately, practitioners make two errors when estimating implied plowback as k = g ÷ r. The first
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Uncertainty in Capital Budgeting: Five Particular Safety-(or Danger-) Margins from the NPV Formula Journal of Applied Corporate Finance Pub Date : 2022-09-29 Richard A. Miller
The primary approaches for evaluating prospective capital projects, which are investments (outlays) with future financial benefits, are net present value (NPV) and the internal rate of return (IRR), both based on the discounted expected positive and negative cash flows. The NPV formula can be used to provide three additional insights into the evaluation of prospective investment opportunities: normal
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Do You Really Know Your Cost of Capital? Journal of Applied Corporate Finance Pub Date : 2022-09-29 Matti Keloharju, Juhani Linnainmaa, Peter Nyberg
We argue that the cost of equity capital varies much less across firms than previously thought. We find that expected return differences across stocks are short term in nature and become empirically indistinguishable from zero in five years. When we aggregate expected returns over longer periods of time, our results translate into 99% of the firms having their cost of equity within 1% of the market-wide
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Corporate Governance versus Real Governance∗ Journal of Applied Corporate Finance Pub Date : 2022-06-11 Ronald J. Gilson
The rough coincidence of the 50th anniversary of Milton Friedman's Sunday New York Times Magazine article, “The Social Responsibility of Business Is to Increase Its Profits,” with today's movement advocating broader corporate purpose than maximizing shareholder value and stressing the public corporation's obligation to other stakeholders raises the questions: to whom is the corporation accountable
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The Financial Cost of Carbon Journal of Applied Corporate Finance Pub Date : 2022-06-11 Patrick Bolton, Zachery Halem, Marcin Kacperczyk
Climate finance is first and foremost a risk-management problem, which means three things for investors. First, prudent investors will seek to hedge climate change risk by reducing their exposure to this risk. Second, investors will demand compensation for holding this risk. Third, investors will engage with companies to urge them to reduce this risk if they are not adequately compensated for it.
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Employee Value Added: A New Measure of Gain-Sharing between Labor and Capital Journal of Applied Corporate Finance Pub Date : 2022-06-11 Stephen F. O'Byrne, Shivaram Rajgopal
Most investors are aware of economic profit concepts that compare company profits with the opportunity cost of the capital used to generate those profits, but few investors try to compute similar value added measures for employees, or to assess whether employee value added is aligned with investor value added or whether such alignment is beneficial for investors. The fact that 85% of public companies
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How to Settle the Corporate Purpose Debate Journal of Applied Corporate Finance Pub Date : 2022-06-11 Alfred Rappaport, Michael J. Mauboussin
The debate over the purpose of the public corporation has gone on for decades. The idea that companies should prioritize the interests of shareholders gained widespread acceptance in the 1980s. However, the tide turned in the last decade as a growing number of CEOs, boards, employees, customers, social activists, and investors support a move from corporate governance focused on shareholders to one
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Building Investor Trust in Net Zero Journal of Applied Corporate Finance Pub Date : 2022-06-11 Ariel Babcock, Allen He, Veena Ramani
In the past five years, a growing number of investors have been taking more serious account of climate change in their investment decision-making. Meanwhile, companies have been responding by making bold net zero commitments. But if it seems reasonable to expect that companies making such commitments would see a subsequent market reaction, the authors' recent analysis found no significant abnormal
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Missing the Target: A Review of Mark Roe's New Book on U.S. Stock-Market Short-Termism Journal of Applied Corporate Finance Pub Date : 2022-06-11 Tom Gosling
The narrative of pervasive short-termism caused by the stock market, and the need to protect corporations and the economy from it, is now a well established one. Frenetic short-term trading and aggressive activists chasing immediate increases in profit prevent corporations from thinking about the requirements for their own long-run success. Institutional investors squeeze cash out of the corporate
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The Recent Surge in Money Growth: What Would Milton Friedman Say? Journal of Applied Corporate Finance Pub Date : 2022-06-11 Peter N. Ireland
The M2 money supply has grown by almost 40% since 2019. This number by itself raises the strong possibility that we have entered a new and remarkable era in United States monetary history. But what would Milton Friedman say?
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Recent Monetary History: A Monetarist Perspective Journal of Applied Corporate Finance Pub Date : 2022-06-11 Brian Kantor
The U.S. Federal Reserve System has recently added very large additional supplies of its own money, in the form of deposits (cash reserves) held by member banks with the Fed. The first injection of central bank money offered in exchange for Treasury Bonds and MBS (QE) was intended to overcome the Global Financial Crisis (GFC) of 2008-09. The second infusion of extra cash was intended to relieve the
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The Magic of Finance Capitalism∗ Journal of Applied Corporate Finance Pub Date : 2022-06-11 Don Chew, Bennett Stewart
In this two-part introduction to the book they are writing, two of the founding partners of New York corporate finance consulting firm Stern Stewart discuss the contribution of the principles and methods of corporate finance to the remarkable increase in U.S. social wealth during the past 40 years—that is, since the decade of the 1970s, when, as the authors maintain, the U.S. corporate governance system
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Real Options and Hidden Leverage∗ Journal of Applied Corporate Finance Pub Date : 2022-03-01 Stewart C. Myers, James A. Read
Financial leverage is customarily measured by the ratio of debt to net assets or debt to enterprise value. These measures usually understate effective leverage, because corporate commitments to ongoing and future capital investments create hidden leverage that acts like debt, but does not appear on book balance sheets.
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Risk-Taking and Risk Management by Banks Journal of Applied Corporate Finance Pub Date : 2022-03-01 René M. Stulz
A well-governed bank takes the amount of risk that is expected to maximize its shareholder wealth, subject to the constraints imposed by laws and regulators. The role of risk management in such banks is not to minimize or reduce the banks’ total risk. It is rather to identify and measure the risks the banks are taking, aggregate these risks into a measure of the banks’ total risk, enable the banks
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Globalization, Corporate Finance, and the Cost of Capital Journal of Applied Corporate Finance Pub Date : 2022-03-01 René M. Stulz
International financial markets appear to be becoming a single huge, integrated, global capital market—a development that is contributing to higher stock prices in developed as well as developing economies. For companies large and visible enough to attract global investors, having a global shareholder base means having a lower cost of capital, and hence a greater equity value, for two main reasons:
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The Limits of Financial Globalization Journal of Applied Corporate Finance Pub Date : 2022-03-01 René M. Stulz
Although barriers to international investment have fallen sharply over the last 60 years, the positive impact of financial globalization has proved far more limited than expected. Predictions by economists (including the author) that cross-country differences in investment and financing would narrow or even disappear have largely failed to materialize. Investors everywhere continue to hold disproportionate
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Rethinking Risk Management Journal of Applied Corporate Finance Pub Date : 2022-03-01 René M. Stulz
This paper presents a theory of corporate risk management that goes beyond the “variance-minimization” model that long dominated academic discussions of the subject. It argues that the primary goal of risk management is not to dampen swings in corporate earnings, cash flows, or value, but rather to provide protection against the possibility of costly lower-tail outcomes—situations that would cause
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Risk Management Failures: What Are They and When Do They Happen? Journal of Applied Corporate Finance Pub Date : 2022-03-01 René M. Stulz
The losses experienced by financial institutions during the Global Financial Crisis convinced many observers that current corporate risk management practices are deeply flawed, and that such flaws contributed greatly to the crisis. The author challenges this view by calling for and demonstrating the need to distinguish between flawed assessments by risk managers and corporate risk-taking decisions
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How Companies Can Use Hedging to Create Shareholder Value Journal of Applied Corporate Finance Pub Date : 2022-03-01 René M. Stulz
Assessing the performance of a corporate risk management program, and how it is expected to increase the value of the enterprise, is a difficult undertaking mainly because the costs of risk management tend to be much easier to quantify—indeed, they often appear directly on the firm's bottom line—than the expected benefits. This article provides a framework for designing and evaluating corporate risk
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Enterprise Risk Management: Theory and Practice Journal of Applied Corporate Finance Pub Date : 2022-03-01 Brian W. Nocco, René M. Stulz
The Chief Risk Officer of Nationwide Insurance teams up with a distinguished academic to discuss the benefits and challenges associated with the design and implementation of an enterprise risk management program. The authors begin by arguing that a carefully designed ERM program—one in which all material corporate risks are viewed and managed within a single framework—can be a source of long-run competitive
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FinTech, BigTech, and the Future of Banks Journal of Applied Corporate Finance Pub Date : 2022-03-01 René M. Stulz
Banks are unique financial institutions in that they combine the production of liquid claims—that is, demand deposits—with loans. Though banks can replicate most of what FinTech firms can do, FinTech firms benefit from an uneven playing field in that they are less regulated than banks. The uneven playing field enables nonbank FinTech firms to challenge banks in specific product areas where success
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Merton Miller's Contribution to Modern Finance Journal of Applied Corporate Finance Pub Date : 2022-03-01 René M. Stulz
This article sums up the research and writings of the University of Chicago's Merton Miller, winner of the 1990 Nobel Prize in Economics, and widely regarded as the “father of modern finance,” in terms of a single governing principle: the role of arbitrage in ensuring the “efficiency” of financial markets and, more generally, the effectiveness of such markets in promoting economic growth and creating
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Interpreting Modern Monetary Reality Journal of Applied Corporate Finance Pub Date : 2022-01-17 Peter Stella
During the 1990s and 2000s, the quantity theory of money (QTM) fell out of favor both among policymakers and academics. Central bankers almost universally adopted short-term interest rates as their policy instruments while money was often dropped entirely from the dominant theoretical macro models.
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On Monetary Growth and Inflation in Leading Economies, 2021-2022: Relative Prices and the Overall Price Level Journal of Applied Corporate Finance Pub Date : 2022-01-17 John Greenwood, Steve H. Hanke
In the United States and numerous other economies, we are witnessing a flood of ad hoc explanations for inflation. These deal primarily with supply chain issues that have arisen since the COVID-19 pandemic and the reopening of economies. There is a widespread view among officials at the Federal Reserve System, economists in the Biden administration, academics, and even large parts of the business community
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American Enterprise Institute Roundtable: Government Policies Reshape the Banking System Journal of Applied Corporate Finance Pub Date : 2022-01-17 Paul H. Kupiec, Richard Sylla, Alex J. Pollock, Charles W. Calomiris, Bert Ely
The U.S. federal government response to the 2008 financial crisis, including new laws, prudential regulations, and Federal Reserve monetary policies, has left a lasting impact on the U.S. banking industry. Along with a nearly 50% drop in the number of independent depository institutions since 2000, the industry has become much more concentrated in a few large “systemically important” institutions.
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Will Fractional-Reserve Stablecoin Banking Replace Bitcoin and Some Traditional Banking Payments? Journal of Applied Corporate Finance Pub Date : 2022-01-17 Charles W. Calomiris
The former Chief Economist of the OCC discusses how FinTech innovators are developing new ways of improving banking services that promise to increase both the efficiency and soundness of the U.S. financial system. Most of these innovations are focused on either lending or payments, but not both, since FinTech providers, unlike traditional banks, tend to specialize in one of the two activities.
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Looking for the Economy-Wide Effects of Stock Market Short-Termism Journal of Applied Corporate Finance Pub Date : 2022-01-17 Mark J. Roe
To investigate the widespread claim that stock market “short-termism” is a major drag on U.S. corporate investment and the broad economy, the author examines the evidence on long-run trends in corporate capital investment, buybacks, and R&D. As critics of market-driven corporate short-termism have pointed out, U.S. corporate investment in capital equipment and other tangible assets has been falling
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The GameStop Episode: What Happened and What Does It Mean? Journal of Applied Corporate Finance Pub Date : 2022-01-17 Allan M. Malz
The GameStop stock trading episode that began in January 2021 has been unprecedented in some ways, especially in the ability of market participants to organize collective action openly yet anonymously. In other ways, however, it's been an unsurprising repetition of past experience. Contrary to the cliche of an unregulated and predatory financial system, the actions of the participants and the events
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IPC Oxford Private Equity Research Symposium Journal of Applied Corporate Finance Pub Date : 2021-11-22 Gregory Brown, Tim Jenkinson, Robert S. Harris, Petra Bukovec, Victoria Ivashina, Per Johan Strömberg, Fran Kinniry, Alex Rogers
One of the world's foremost authorities on global private equity offers four predictions:
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Inequality and Progress Journal of Applied Corporate Finance Pub Date : 2021-11-22 Steven Pinker
The author begins by noting that, however much economic inequality has become an obsession in developed countries in the 21st century, it is “not a fundamental component of well-being… like health, prosperity, knowledge, safety, or peace.” Citing philosopher Harry Frankfurt, he argues that “inequality itself is not morally objectionable; what is objectionable is poverty… it is not important everyone