A5019547534- Corporate Finance and Governance
- Financial Markets and Investment Strategies
- Banking stability, regulation, efficiency
- Housing Market and Economics
- Auditing, Earnings Management, Governance
- Credit Risk and Financial Regulations
- Financial Reporting and Valuation Research
- Private Equity and Venture Capital
- Insurance and Financial Risk Management
- Monetary Policy and Economic Impact
- Corruption and Economic Development
- Market Dynamics and Volatility
- Microfinance and Financial Inclusion
- Financial Literacy, Pension, Retirement Analysis
- Global Financial Crisis and Policies
- Italy: Economic History and Contemporary Issues
- Fiscal Policy and Economic Growth
- Auction Theory and Applications
- Fiscal Policies and Political Economy
- FinTech, Crowdfunding, Digital Finance
- Economic theories and models
- Housing, Finance, and Neoliberalism
- Firm Innovation and Growth
- Merger and Competition Analysis
- Islamic Finance and Banking Studies
Jones College
2009-2023
Rice University
2013-2023
Rush University Medical Center
2022
Texas Tech University
2019
University of Tennessee at Knoxville
2019
American University
2019
Financial Management Association International
2019
Vanderbilt University
2019
Baylor University
2019
Viasat (Switzerland)
2017
ABSTRACT When local media report news about companies, they use fewer negative words compared to the same reporting nonlocal companies. We document that one reason for this positive slant is firms' advertising expenditures. Abnormal strongly relates firm equity values. The effect stronger small firms; firms held predominantly by individual investors; and with illiquid or highly volatile stock, low analyst following, high dispersion of forecasts. These findings show content varies...
Abstract We show that stock market liquidity is an important determinant of the cost raising external capital. Using a large sample seasoned equity offerings, we find that, ceteris paribus, investment banks' fees are significantly lower for firms with more liquid stock. estimate difference in banking fee most vs. least quintile about 101 basis points or 21% average our sample. Our findings suggest can reduce capital by improving their
We show that state corruption and political connections have strong effects on municipal bond sales underwriting. Higher is associated with greater credit risk higher yields. Corrupt states can eliminate the yield penalty by purchasing enhancements. Underwriting fees were significantly during an era when underwriters made contributions to win underwriting business. This pay-to-play fee premium exists only for negotiated bid bonds where business be allocated basis of favoritism. Overall, our...
Journal Article Distance Still Matters: Evidence from Municipal Bond Underwriting Get access Alexander W. Butler School of Management, The University Texas at Dallas Address correspondence to: Butler, Department Finance and Managerial Economics, SM 31, Dallas, Richardson, TX 75083; e-mail: butler@utdallas.edu. Search for other works by this author on: Oxford Academic Google Scholar Review Financial Studies, Volume 21, Issue 2, April 2008, Pages 763–784, https://doi.org/10.1093/rfs/hhn002...
This paper uses detailed data from an online peer-to-peer lending intermediary to test whether local access finance affects consumers’ willingness pay for loans. After controlling economic conditions and borrower credit quality, we find that borrowers who reside in areas with good bank request loans lower interest rates. effect is stronger poor those seeking small loans, suggesting more important marginal borrowers. Overall, our findings shed light on how consumers substitute between...
Abstract We document racial disparities in auto lending. Combining credit bureau records with borrower characteristics, we find that Black and Hispanic applicants’ approval rates are 1.5 percentage points lower, even after controlling for creditworthiness. In aggregate, this effect crowds out 80,000 minority loans each year. Results stronger where biases more prevalent lending competition is lower. Minority borrowers pay 70-basis-point higher interest rates, but default less ceteris paribus,...
ABSTRACT Previous studies have found that the proportion of equity in total new debt and issues is negatively correlated with future market returns. Researchers interpreted this finding as evidence corporate managers are able to predict systematic component their stock returns issue when overvalued. In article we show predictive power share stems from pseudo‐market timing not any abnormal ability time markets.
We use a sample of 86 counties to examine the cross-sectional determinants sovereign credit ratings. find that quality country's legal and political institutions plays vital role in determining these A one-standard-deviation increase our environment index results an average rating 0.466 standard deviations, even when we control for obvious factors such as GDP per capita, inflation, foreign debt GDP, previous defaults, general development. Although part this effect is due environment's...
Mutual funds whose managers are in the same educational network as firm’s CEO more likely to vote against shareholder-initiated proposals limit executive compensation than out-of-network funds. This voting propensity is stronger when among a family not unanimous. Furthermore, CEOs of firms with relatively high levels educationally connected mutual fund ownership have higher their unconnected counterparts. aspect related both abnormal trading performance investors firm and perceived quality...
We show that initial public offerings (IPOs) have nontrivial positive spillover effects on local labor markets, business environments, consumer spending, real estate, and migration. mitigate endogeneity concerns about unobserved heterogeneity with restrictive geographic fixed coupled a matching procedure. it is the listing decision, which encompasses both wealth liquidity shock, induces economic spillovers. Conditional an IPO occurring, we estimate additional $10 million in proceeds...
An increase in the cost of selling short should bearish information content interest announcements by driving relatively uninformed sellers out market. We extend Diamond and Verrecchia (1987) model to include against box test extended using a natural experiment based around Taxpayer Relief Act 1997 (TRA97). TRA97 made more costly for those shorting box. Consistent with implications our model, this short‐selling costs strengthens negative relationship between subsequent stock price...
We list the papers that were most highly cited by top -level finance journals during 1990s. identify overall, frequently paper published in each of past thirty years, and journal. use influential to construct suggested doctoral course reading lists five research areas. a comprehensive sample journals, an extensive time period, new ranking method avoids problems inherent existing literature.
ABSTRACT This paper provides a rational explanation for the apparent ability of managers to successfully time maturity their debt issues. We show that structural break in excess bond returns during early 1980s generates spurious correlation between fraction long‐term total issues and future returns. Contrary Baker, Taliaferro, Wurgler (2006) , we presence breaks can lead nonsense regressions, whether or not there is any small sample bias. Tests using firm‐level data further confirm are...
We exploit unique features of the U.S. municipal bond underwriting market to assess how political integrity affects primary financial outcomes. show that state corruption and connections have strong effects on several aspects sales underwriting. Specifically, we find higher is associated with greater credit risk, yields, use external enhancement, lower quality underwriters. States are more corrupt can eliminate yield penalty by purchasing enhancements, effectively selling integrity-related...
We study the relation between access to finance and productivity. Our contribution literature is a clean identification of causal effect on Specifically, we exploit an exogenous shift in demand for product expose how producers adapt their productivity presence varying levels finance. use triple differences testing approach find that production increases most over sample period areas with relatively strong finance, even comparison control group. This result statistically significant, robust...
Journal Article Stock Market Liquidity and the Long-run Performance of Debt Issuers Get access Alexander W. Butler, Butler Rice University Search for other works by this author on: Oxford Academic Google Scholar Hong Wan State New York at Oswego The Review Financial Studies, Volume 23, Issue 11, November 2010, Pages 3966–3995, https://doi.org/10.1093/rfs/hhq082 Published: 30 September 2010
Abstract The average maturity of newly issued corporate bonds has declined substantially over the past 40 years, and traditional determinants debt fail to explain this decline fully. We show that changing composition investors in bond market influences maturities. results a Granger causality test, an instrumental variable approach, natural experiment suggest insurance companies’ – which prefer long-term ownership share explains significant part unexplained decline. These findings illustrate...
Using a sample of municipal bond offerings, I find that "local" investment banks have substantial comparative and absolute advantages over non-local counterparts - locals charge lower fees sell bonds at yields. Local banks' strongest advantage is underwriting with higher credit risk not rated by rating agencies. These findings suggest high non-rated are more difficult to evaluate market, local presence better able assess "soft" information place issues.