Preliminary Program

SIXTY FIFTH ANNUAL MEETING
AMERICAN FINANCE ASSOCIATION

1/7/2005
1/8/2005
1/9/2005

1/8/2005  5:30 PM - Business Meeting and Presidential Address 

Target Capital Structure and Bankruptcy Costs
Session Chair: Michael Weisbach, University of Illinois

Ivo Welch, Yale University,  Arturo Bris, Yale University and Ning Zhu, University of California, Davis
The Costs of Bankruptcy
Abstract   Article

Colin Mayer, Oxford University and Oren Sussman, Oxford University
A New Test of Capital Structure
Abstract   Article

Aydogan Alti, University of Texas at Austin
How Persistent is the Impact of Market Timing on Capital Structure?
Abstract   Article

Mark Flannery, University of Florida and Kasturi Rangan, Case Western Reserve University
Partial Adjustment Toward Target Capital Structures
Abstract   Article

Discussants:
David Scharfstein, Harvard University
Vojislav Maksimovic, University of Maryland
Jay Ritter, University of Florida
Ivo Welch, Yale University

Cash-Flow and Factor Models of Stock Returns
Session Chair: Sydney Ludvigson, New York University

Murillo Campello, University of Illinois at Urbana-Champaign,  Long Chen, Michigan State University and Lu Zhang, University of Rochester
Expected Returns, Yield Spreads, and Asset Pricing Tests
Abstract   Article

Samuel Thompson, Harvard University,  Tuomo Vuolteenaho, Harvard University and Christopher Polk, Northwestern University
Cross-sectional Forecasts of the Equity Premium
Abstract   Article

S.P. Kothari, Massachusetts Institute of Technology,  Jonathan Lewellen, Massachusetts Institute of Technology and Jerold Warner, University of Rochester
Stock Returns, Aggregate Earnings Surprises, and Behavioral Finance
Abstract   Article

Discussants:
Jay Shanken, Emory University
Kenneth French, Dartmouth College
Nicholas Barberis, University of Chicago

The Mutual Fund Industry
Session Chair: Will Goetzmann, Yale University

Ajay Khorana, Georgia Institute of Technology,  Henri Servaes, London Business School and Peter Tufano, Harvard University
Explaining the Size of the Mutual Fund Industry Around the World
Abstract   Article

Marcin Kacperczyk, University of British Columbia,  Clemens Sialm, University of Michigan and Lu Zheng, University of Michigan
On the Industry Concentration of Actively Managed Equity Mutual Funds
Abstract   Article

Pedro Matos, INSEAD,  Massimo Massa, INSEAD and Jose-Miguel Gaspar, ESSEC
Favoritism in Mutual Fund Families? Evidence on Strategic Cross-Fund Subsidization
Abstract   Article

George Jiang, University of Arizona,  Tong Yao, University of Arizona and Tong Yu, University of Rhode Island
Do Mutual Funds Time the Market? Evidence from Portfolio Holdings
Abstract   Article

Discussants:
Gregory Kadlec, Virginia Tech University
Matthew Spiegel, Yale University
Stephen Brown, New York University
Jeffrey Busse, Emory University

Managerial Incentives and the Business Cycle
Session Chair: Peter DeMarzo, Stanford University

Roman Inderst, INSEAD and Holger Mueller, New York University
Benefits of Broad-Based Option Pay
Abstract   Article

Andrea Eisfeldt, Northwestern University and Adriano Rampini, Northwestern University
Letting Go: Managerial Incentives and the Reallocation of Capital
Abstract   Article

Heitor Almeida, New York University and Daniel Wolfenzon, New York University
Should Business Groups be Dismantled? The Equilibrium Costs of Efficient Internal Capital Markets
Abstract   Article

Paul Povel, University of Minnesota,  Rajdeep Singh, University of Minnesota and Andrew Winton, University of Minnesota
Booms, Busts, and Fraud
Abstract   Article

Discussants:
Vincenzo Quadrini, University of Southern California
Gian Luca Clementi, New York University
Arvind Krishnamurthy, Northwestern University
Andrew Hertzberg, Northwestern University

Accounting and Corporate Finance
Session Chair: Mark Lang, University of North Carolina

Mark Bradshaw, Harvard University,  Brian Bushee, University of Pennsylvania and Gregory Miller, Harvard University
Accounting Choice, Home Bias, and US Investment in Non-US Firms
Abstract   Article

Armando Gomes, University of Pennsylvania,  Gary Gorton, University of Pennsylvania and Leonardo Madureira, University of Pennsylvania
SEC Regulation Fair Disclosure, Information, and the Cost of Capital
Abstract   Article

Michael Greenstone, Massachusetts Institute of Technology,  Paul Oyer, Stanford University and Annette Vissing-Jorgensen, Northwestern University
Mandated Disclosure, Stock Returns, and the 1964 Securities Acts Amendments
Abstract   Article

Ailsa Roell, Princeton University and Lin Peng, City University of New York
Executive Pay, Earnings Manipulation and Shareholder Litigation
Abstract   Article

Discussants:
Peter Wysocki, Massachusetts Institute of Technology
Wayne Landsman, University of North Carolina
Christian Leuz, University of Pennsylvania
Michelle Hanlon, University of Michigan

Liquidity
Session Chair: Tarun Chordia, Emory University

Michael Gallmeyer, Carnegie Mellon University,  Burton Hollifield, Carnegie Mellon University and Duane Seppi, Carnegie Mellon University
Liquidity Discovery and Asset Pricing
Abstract   Article

Ravi Jain, Temple University,  Yihong Xia, University of Pennsylvania and Matthew Wu, Rydex Global Advisors
Illiquidity and Closed-End Country Fund Discounts
Abstract   Article

Lawrence Harris, University of Southern California & Securities and Exchange Commission and Michael Piwowar, U.S. Securities and Exchange Commission
Municipal Bond Liquidity
Abstract   Article

Discussants:
Dimitri Vayanos, London School of Economics
Doron Avramov, University of Maryland
Clifton Green, Emory University

Corporate Finance and Investment
Session Chair: Paola Sapienza, Northwestern University

Joshua Rauh, Massachusetts Institute of Technology
Investment and Financing Constraints: Evidence from the Funding of Corporate Pension Plans
Abstract   Article

Heitor Almeida, New York University and Murillo Campello, University of Illinois at Urbana-Champaign
Financial Constraints, Asset Tangibility and Corporate Investment
Abstract   Article

Andrea Eisfeldt, Northwestern University and Adriano Rampini, Northwestern University
New or Used? Investment with Credit Constraints
Abstract   Article

Lu Zhang, University of Rochester and Horacio Sapriza, University of Rochester
A Neoclassic Model of Financially Constrained Stock Returns
Abstract   Article

Discussants:
Owen Lamont, Yale University
Belen Villalonga, Harvard University
Steven Kaplan, University of Chicago
Martin Schneider, New York University

AFA/AFE Investment Banking
Session Chair: Kose John, New York University

Wei-Lin Liu, Michigan State University and Jun-Koo Kang, Michigan State University
Is Universal Banking Justified? Evidence from Bank Underwriting of Corporate Bonds in Japan
Abstract   Article

Chitru Fernando, University of Oklahoma,  Vladimir Gatchev, Tulane University and Paul Spindt, Tulane University
Wanna Dance? How Firms and Underwriters Choose Each Other
Abstract   Article

Timothy Burch, University of Miami,  Vikram Nanda, University of Michigan and Vincent Warther, Lexecon, Inc.
Does it Pay to be Loyal? An Empirical Analysis of Underwriting Relationships and Fees
Abstract   Article

Thomas Chemmanur, Boston College,  Imants Paeglis, Concordia University and Karen Simonyan, Boston College
Management Quality, Financial Policies, and Performance of Seasoned Equity Issuers
Abstract   Article

Discussants:
Manju Puri, Duke University
Francesca Cornelli, London School of Business
Robert Hansen, Tulane University
Antoinette Schoar, Massachuetts Institute of Technology

Idiosyncratic Volatility
Session Chair: Tuomo Vuolteenaho, Harvard University

David Brown, University of Wisconsin-Madison and Miguel Ferreira, ISCTE Business School-Lisbon
Information in the Idiosyncratic Volatility of Small Firms
Abstract   Article

Xiaoquan Jiang, University of Northern Iowa and Bong-Soo Lee, University of Houston
On the Dynamic Relation Between Returns and Idiosyncratic Volatility
Abstract   Article

Hui Guo, Federal Reserve Bank of St. Louis and Robert Savickas, George Washington University
Idiosyncratic Volatility, Stock Market Volatility, and Expected Stock Returns
Abstract   Article

Andrew Ang, Columbia University,  Robert Hodrick, Columbia University,  Yuang Xing, Rice University and Xiaoyan Zhang, Cornell University
The Cross-Section of Volatility and Expected Returns
Abstract   Article

Discussants:
Samuel Thompson, Harvard University
Amit Goyal, Emory University
Tobias Moskowitz, University of Chicago

Comparative Regulation
Session Chair: Randall Morck, University of Alberta

Philip Strahan, Boston College and Jun Qian, Boston College
How Laws & Institutions Shape Financial Contracts: The Case of Bank Loans
Abstract   Article

Donghua Chen, Shanghai University of Finance & Economics,  Joseph Fan, Hong Kong University of Science and Technology and T.J. Wong, Hong Kong University of Science and Technology
Politically-Connected CEOs, Corporate Governance and Post-IPO Performance of China's Partially Privatized Firms
Abstract   Article

Enrico Perotti, University of Amsterdam and Paolo Volpin, London Business School
The Political Economy of Entry: Lobbying and Financial Development
Abstract   Article

Christian Leuz, University of Pennsylvania and Luzi Hail, University of Zurich
International Differences in Cost of Capital: Do Legal Institutions and Securities Regulation Matter?
Abstract   Article

Discussants:
Bernard Yeung, New York University
Mara Faccio, Vanderbilt University
Daniel  Wolfenzon , New York University
Mark Huson, University of Alberta

The Term Structure and the Macroeconomy
Session Chair: Robert Goldstein, University of Minnesota

Yigal Newman, Dimentional Fund Advisors and Michael Rierson, Citigroup Global Equities
Illiquidity Spillovers: Theory and Evidence from European Telecom Bond Issuance
Abstract   Article

Andrew Ang, Columbia University,  Monika Piazzesi, University of Chicago and Min Wei, Columbia University
What Does the Yield Curve Tell Us About GDP Growth?
Abstract   Article

Qiang Dai, New York University and Thomas Philippon, New York University
Government Deficits and Interest Rates: A No-Arbitrage Structural VAR Approach
Abstract   Article

Peter Hoerdahl, European Central Bank,  Oreste Tristani, European Central Bank and David Vestin, European Central Bank
A Joint Econometric Model of Macroeconomic and Term Structure Dynamics
Abstract   Article

Discussants:
Pierre Collin-Dufresne, UC Berkeley
David Chapman, Boston College
Amir Yaron, University of Pennsylvania
Ravi Bansal, Duke University

Asset Prices, Information, and Volume
Session Chair: Jiang Wang, Massachusetts Institute of Technology

Reza Mahani, University of Illinois Urbana-Champaign and Dan Bernhardt, University of Illinois Urbana-Champaign
Financial Speculators' Underperformance: Learning, Self-selection, and Provision of Liquidity
Abstract   Article

Amit Goyal, Emory University,  Doron Avramov, University of Maryland and Tarun Chordia, Emory University
The Impact of Trades on Daily Volatility
Abstract   Article

Henry Cao, University of North Carolina, Chapel Hill and Hui Ou-Yang, Duke University
Differences of Opinion of Public Information and Speculative Trading in Stocks and Options
Abstract   Article

Discussants:
Albert Kyle, Duke University
Georgios Skoulakis, Northwestern University
Kerry Back, Washington University in St. Louis

Entrepreneurial Finance
Session Chair: Per Stromberg, University of Chicago

Zsuzsanna Fluck, Michigan State University,  Kedran Garrison, Massachusetts Institute of Technology and Stewart Myers, Massachusetts Institute of Technology
Venture Capital: An Experiment in Computational Corporate Finance
Abstract   Article

Laura Bottazzi, Bocconi University,  Marco Da Rin, Turin University and Thomas Hellmann, Stanford University
What Role of Legal Systems in Venture Capital? Theory and Evidence
Abstract   Article

Josh Lerner, Harvard University and Ulrike Malmendier, Stanford University
Contractibility and the Design of Research Agreements
Abstract   Article

Daniel Wolfenzon, New York University,  Kasper Nielsen, Centre for Economic and Business Research and Morten Bennedsen, Copehangen Business School
The Family Behind the Family Firm: Evidence from CEO Transitions
Abstract   Article

Discussants:
Ulf Axelson, University of Chicago and Stockholm Institute for Financial Research
Steven Kaplan, University of Chicago
David Robinson, Duke University
Renee Adams, Stockholm School of Economics

International Equity Markets
Session Chair: Geert Bekaert, Columbia University

Jianping Mei, New York University,  Jose Scheinkman, Princeton University and Wei Xiong, Princeton University
Speculative Trading and Stock Prices: An Analysis of Chinese A-B Share Premia
Abstract   Article

Paolo Pasquariello, University of Michigan
Are Financial Crises Indeed "Crises?" Evidence from the Emerging ADR Market
Abstract   Article

Francesca Carrieri, McGill University,  Vihang Errunza, McGill University and Sergei Sarkissian, McGill University
The Dynamics of Geographic versus Sectoral Diversification: Is There a Link to the Real Economy?
Abstract   Article

Rui Albuquerque, University of Rochester,  Gregory Bauer, Bank of Canada and Martin Schneider, New York University
International Equity Flows and Returns: A Quantitative Equilibrium Approach
Abstract   Article

Discussants:
Warren Bailey, Cornell University
Roberto Rigobon, Massachusetts Institute of Technology
Lieven Baele, Tilburg University
Ravi Bansal, Duke University

Banking Theory
Session Chair: Rafael Repullo, CEMFI

Jussi Keppo, University of Michigan and Samu Peura, Sampo PLC
Optimal Bank Capital with Costly Recapitalization
Abstract   Article

Dirk Hackbarth, Indiana University,  Hayne Leland, University of California, Berkeley and Christopher Hennessy, University of California, Berkeley
Can the Tradeoff Theory Explain Debt Structure?
Abstract   Article

Roman Inderst, INSEAD and Holger Mueller, New York University
A Lender-Based Theory of Collateral
Abstract   Article

Discussants:
Stephen Schaefer, London Business School
Ilya Strebulaev, Stanford University
Patrick Bolton, Princeton University

Options
Session Chair: David Bates, University of Iowa

Peter Carr, Bloomberg LP & New York University and Liuren Wu, City University of New York
Variance Risk Premia
Abstract   Article

Joost Driessen, University of Amsterdam and Pascal Maenhout, INSEAD
The World Price of Jump and Volatility Risk
Abstract   Article

Sophie Ni, University of Illinois,  Neil Pearson, University of Illinois and Allen Poteshman, University of Illinois
Stock Price Clustering on Option Expiration Dates
Abstract   Article

Discussants:
George Jiang, University of Arizona
Gurdip Bakshi, University of Maryland
Nick Bollen, Vanderbilt University

Mergers and Acquisitions
Session Chair: Todd Pulvino, Northwestern University

Paul Povel, University of Minnesota and Rajdeep Singh, University of Minnesota
Takeover Contests With Asymmetric Bidders
Abstract   Article

Audra Boone, The College of William & Mary and Harold Mulherin, Claremont McKenna College
How Are Firms Sold?
Abstract   Article

Edith Hotchkiss, Boston College,  Jun Qian, Boston College and Weihong Song, Boston College
Holdups, Renegotiation, and Termination Fees in Stock Mergers
Abstract   Article

Discussants:
Laurie Hodrick, Columbia University
Mark Mitchell, CNH Partners
Micah Officer, University of Southern California

International Law and Finance
Session Chair: Florencio Lopez-de-Silanes, Yale University

Mark Garmaise, University of California, Los Angeles and Jun Liu, University of California, Los
Corruption, Governance, and the Cost of Capital
Abstract   Article

Jordan Siegel, Harvard University
Do Foreign Firms Choose Not to Cross-List Because They Have Secured Better Alternatives? Evidence from Mexico
Abstract   Article

Li Jin, Harvard University and Stewart Myers, Massachusetts Institute of Technology
R-Squared Around the World: New Theory and New Tests
Abstract   Article

Discussants:
Daniel Wolfenzon, New York University
Craig Doidge, University of Toronto
Randall Morck, Harvard University

Professional Investment Advice
Session Chair: Jeffrey Kubik, Syracuse University

Jonathan Reuter, University of Oregon and Eric Zitzewitz, Stanford University
Do Ads Influence Editors? Advertising and Bias in the Financial Media
Abstract   Article

Anup Agrawal, University of Alabama and Mark Chen, University of Maryland
Analyst Conflicts and Research Quality
Abstract   Article

Hui Tong, University of California, Berkeley
Disclosure Standards and Market Efficiency: Evidence from Analysts' Forecasts
Abstract   Article

Discussants:
Alexander Dyck, Harvard University
Jonathan Clarke, Georgia Institute of Technology
Amber Anand, Syracuse University

Price Discovery
Session Chair: Paul Schultz, University of Notre Dame

Charles Cao, Pennsylvania State University,  Oliver Hansch, Pennsylvania State University & Nasdaq and Xiaoxin Wang, Southern Illinois University
The Informational Content of an Open Limit Order Book
Abstract   Article

Bart Frijns, Maastricht University and Peter Schotman, Maastricht University
Price Discovery in Tick Time
Abstract   Article

Bingcheng Yan, University of Washington and Eric Zivot, University of Washington
The Dynamics of Price Discovery
Abstract   Article

Discussants:
Kenneth Kavajecz, University of Wisconsin
Venkatesh Panchapagesan, Washington University
Lei Yu, University of Notre Dame

Behavioral Asset Pricing
Session Chair: Harrison Hong, Princeton University

David Frankel, Iowa State University
Adaptive Expectations and Stock Market Crashes
Abstract   Article

Richard Deaves, McMaster University,  Erik Lueders, Laval University and Guo Ying Luo, McMaster University
An Experimental Test of the Impact of Overconfidence and Gender on Trading Activity
Abstract   Article

Lior Menzly, University of Southern California and Oguzhan Ozbas, University of Southern California
Cross-Industry Momentum
Abstract   Article

Nicholas Barberis, University of Chicago and Ming Huang, Stanford University
Stocks as Lotteries: The Implications of Probability Weighting for Security Prices
Abstract   Article

Discussants:
Pietro Veronesi, University of Chicago
Simon Gervais, Duke University
Rossen Valkanov, University of California, Los Angeles
Markus Brunnermeier, Princeton University

Corporate Governance
Session Chair: Andrew Metrick, University of Pennsylvania

Eliezer Fich, University of North Carolina and Anil Shivdasani, University of North Carolina
Are Busy Boards Effective Monitors?
Abstract   Article

Martijn Cremers, Yale University,  Vinay Nair, New York University and Chenyang Wei, New York University
The Impact of Shareholder Control on Bondholders
Abstract   Article

Francisco Perez-Gonzalez, Columbia University
The Impact of Acquiring Control on Productivity: Evidence from Mexican Manufacturing Plants
Abstract   Article

Audra Boone, The College of William and Mary,  Laura Field, Penn State University,  Jonathan Karpoff, University of Washington and Charu Raheja, Vanderbilt University
The Determinants of Corporate Board Size and Composition: An Empirical Analysis
Abstract   Article

Discussants:
Stuart Gillan, Arizona State University
Laura Starks, University of Texas
Vojislav Maksimovic, University of Maryland
Michael Weisbach, University of Illinois

AFA/NAEFA Cross-Country Evidence on Banking Regulation
Session Chair: Anthony Santomero, Federal Reserve Bank of Philadelphia

Craig Brown, University of Michigan and Serdar Dinc, University of Michigan
The Politics of Bank Failures: Evidence from Emerging Markets
Abstract   Article

Söhnke M. Bartram, Lancaster University,  Greg Brown, University of North Carolina and John Hund, Tulane University
Estimating Systemic Risk in the International Banking System
Abstract   Article

Edward Kane, Boston College,  Luc Laeven, The World Bank and Asli Demirguc-Kunt, The World Bank
Determinants of Deposit-Insurance Adoption and Design
Abstract   Article

Discussants:
Randall Kroszner, University of Chicago
Armen Hovakimian, Baruch College, City University of New York
Loretta Mester, Federal Reserve Bank of Philadelphia

The Market for Corporate Control
Session Chair: Manju Puri, Duke University

Matthew Rhodes-Kropf, Columbia University and David Robinson, Duke University
The Market for Mergers and the Boundaries of the Firm
Abstract   Article

Gennaro Bernile, University of Rochester
The information content of insiders' forecasts: analysis of the gains from mergers in the 90s
Abstract   Article

Richmond Mathews, Duke University
Optimal Equity Stakes and Corporate Control
Abstract   Article

C. Edward Fee, Michigan State University,  Charles Hadlock, Michigan State University and Shawn Thomas, University of Pittsburgh
Corporate Equity Ownership and the Governance of Product Market Relationships
Abstract   Article

Discussants:
Denis Gromb, London Business School
Christopher James, University of Florida
Michael Fishman, Northwestern University
Gordon Phillips, University of Maryland

Exchange Rates
Session Chair: Raman Uppal, London Business School

Michael Brennan, University of California, Los Angeles and Yihong Xia, University of Pennsylvania
International Capital Markets and Foreign Exchange Risk
Abstract   Article

Anna Pavlova, Massachusetts Institute of Technology and Roberto Rigobon, Massachusetts Institute of Technology
Asset Prices and Exchange Rates
Abstract   Article

Martin Evans, Georgetown University and Richard Lyons, University of Califonia, Berkeley
A New Micro Model of Exchange Rate Dynamics
Abstract   Article

Discussants:
Bernard Dumas, INSEAD & University of Pennsylvania
Chris Telmer, Carnegie Mellon University
Wei Xiong, Princeton University

Financial Econometrics
Session Chair: Michael Brandt, Duke University

Gergana Jostova, George Washington University and Alexander Philipov, Fannie Mae
Bayesian Analysis of Stochastic Betas
Abstract   Article

Federico Bandi, University of Chicago and Jeffrey Russell, University of Chicago
Separating Microstructure Noise from Volatility
Abstract   Article

Martijn Cremers, Yale University and Jianping Mei, New York University
Turning over Turnover
Abstract   Article

Anthony Lynch, New York University and Jessica Wachter, University of Pennsylvania
Generalized Method of Moments for Samples of Unequal Length
Abstract   Article

Discussants:
Bjorn Eraker, Duke University
Yacine Ait-Sahalia, Princeton University
Doron Avramov, University of Maryland
David Chapman, Boston College

Asset Pricing with Heterogeneous Agents
Session Chair: Urban Jermann, University of Pennsylvania

Harrison Hong, Princeton University and Jeremy Stein, Harvard University
Simple Forecasts and Paradigm Shifts
Abstract   Article

Alexander David, Washington University in St. Louis
Heterogenous Beliefs, Trading Risk, and the Equity Premium
Abstract   Article

Antti Petajisto, Yale University
Why Do Demand Curves for Stocks Slope Down?
Abstract   Article

Discussants:
Lu Zhang, University of Rochester
Chris Telmer, Carnegie Mellon University
Tuomo Vuolteenaho, Harvard University

Initial Public Offerings
Session Chair: Alon Brav, Duke University

Ekkehart Boehmer, Texas A&M University and Raymond Fishe, University of Richmond
Who Receives IPO Allocations? An Analysis of Regular Investors
Abstract   Article

Ralph Bachmann, Nanyang Technological University
A Theory of IPO Underpricing, Issue Activity, and Long-Run Underperformance
Abstract   Article

Mahendrarajah Nimalendran, University of Florida,  Jay Ritter, University of Florida and Donghang Zhang, University of South Carolina
Are Trading Commissions a Factor in IPO Allocation?
Abstract   Article

John Griffin, University of Texas at Austin,  Jeffrey Harris, University of Delaware and Selim Topaloglu, Queen's University
Why are IPO Investors Net Buyers through Lead Underwriters?
Abstract   Article

Discussants:
Reena Aggarwal, Georgetown University
Itay Goldstein, Duke University
Kent Womack, Dartmouth College
Katrina Ellis, University of California, Davis

Capital Structure
Session Chair: Malcolm Baker, Harvard University

Narasimhan Jegadeesh, Emory University,  Brian Henderson, University of Illinois and Michael Weisbach, University of Illinois
World Markets for Raising New Capital
Abstract   Article

Long Chen, Michigan State University and Xinlei Zhao, Kent State University
Understanding the Roles of the Market-to-Book Ratio and Profitability
Abstract   Article

Joseph Fan, Hong Kong University of Science and Technology,  Sheridan Titman, University of Texas at Austin and Garry Twite, University of New South Wales
An International Comparison of Capital Structure and Debt Maturity Choices
Abstract   Article

Viral Acharya, London Business School,  Kose John, New York University and Rangarajan Sundaram, New York University
On Capital-Structure Implications of Bankruptcy Codes
Abstract   Article

Discussants:
Dirk Jenter, Massachusetts Institute of Technology
Michael Roberts, Duke University
Heitor Almeida, New York University
Raghuram Rajan, International Monetary Fund

Strategic Risk Management and Capital Budgeting
Session Chair: Antoinette Schoar, Massachusetts Institute of Technology

Tim Adam, Hong Kong University of Science & Technology,  Sudipto Dasgupta, Hong Kong University of Science & Technology and Sheridan Titman, University of Texas
Financial Constraints, Competition and Hedging in Industry Equilibrium
Abstract   Article

Amrita Nain, University of Michigan
The Strategic Motives for Corporate Risk Management
Abstract   Article

Vojislav Maksimovic, University of Maryland and Gordon Phillips, University of Maryland
The Industry Life-Cycle and Financial Dependence: Does Firm Organization Matter?
Abstract   Article

Discussants:
James Vickery, Federal Reserve Board
Katharina Lewellen, Massachusetts Institute of Technology
Sheri Tice, Tulane University

Conditional Risk and Predictability
Session Chair: Pedro Santa-Clara, University of California, Los Angeles

Yuhang Xing, Rice University,  Andrew Ang, Columbia University and Joseph Chen, University of Southern California
Downside Risk
Abstract   Article

Amit Goyal, Emory University and Ivo Welch, Yale University
A Comprehensive Look at the Empirical Performance of Equity Premium Prediction
Abstract   Article

Pietro Veronesi, University of Chicago and Tano Santos, Columbia University
Conditional Betas
Abstract   Article

Discussants:
John Heaton, Northwestern University
Jonathan Lewellen, Massachusetts Institute of Technology
Wayne Ferson, Boston College

Empirical Analysis of Corporate Credit Spreads
Session Chair: Darrell Duffie, Stanford University

Doron Avramov, University of Maryland,  Gergana Jostova, George Washington University and Alexander Philipov, Fannie Mae
Corporate Credit Risk Changes: Common Factors and Firm-Level Fundamentals
Abstract   Article

Rodolfo Martell, Purdue University
Understanding Common Factors in Domestic and International Bond Spreads
Abstract   Article

Stephen Schaefer, London Business School and Ilya Strebulaev, London Business School
Structural Models of Credit Risk are Useful: Evidence from Hedge Ratios on Corporate Bonds
Abstract   Article

Discussants:
Jean Helwege, University of Arizona
Francis Longstaff, University of California, Los Angeles
Robert Goldstein, Washington University

Behavioral Corporate Finance
Session Chair: David Hirshleifer, The Ohio State University

Robin Greenwood, Harvard University
Aggregate Corporate Liquidity and Stock Returns
Abstract   Article

Armen Hovakimian, Baruch College
Are Observed Capital Structures Determined by Equity Market Timing?
Abstract   Article

Francesca Cornelli, London Business School,  David Goldreich, London Business School and Alexander Ljungqvist, New York University
Investor Sentiment and Pre-Issue Markets
Abstract   Article

Discussants:
Kewei Hou, Ohio State University
Jeffrey Wurgler, New York University
Laura Field, Pennsylvania State University

Banking Competition, Consolidation, and Relationship Lending
Session Chair: Allen Berger, Federal Reserve Board

Sreedhar Bharath, University of Michigan,  Sandeep Dahiya, Georgetown University,  Anthony Saunders, New York University and Anand Srinivasan, University of Georgia
So What Do I Get? The Bank's View of Lending Relationships
Abstract   Article

Ivan Brick, Rutgers University,  Edward Kane, Boston College and Darius Palia, Rutgers University
Evidence of Jointness in the Terms of Relationship Lending
Abstract   Article

Mark Garmaise, University of California, Los Angeles and Tobias Moskowitz, University of Chicago
More Banks, Less Crime? The Real and Social Effects of Bank Competition
Abstract   Article

Kwangwoo Park, Chung-Ang University and George Pennacchi, University of Illinois
Harming Depositors and Helping Borrowers: The Disparate Impact of Bank Consolidation
Abstract   Article

Discussants:
Gregory Udell, Indiana University
Jeremy Stein, Harvard University
Astrid Dick, Federal Reserve Bank of New York
Timothy Hannan, Federal Reserve Board

Mutual Fund Flows and Performance
Session Chair: Bruce Lehmann, University of California, San Diego

Gordon Alexander, University of Minnesota,  Gjergji Cici, University of Pennsylvania and Scott Gibson, Cornell University
Does Motivation Matter When Assessing Trade Performance? An Analysis of Mutual Funds
Abstract   Article

Suleyman Basak, London Business School and CEPR,  Anna Pavlova, Massachusetts Institute of Technology and Alex Shapiro, New York University
Offsetting the Incentives: Risk Shifting and Benefits of Benchmarking in Money Management
Abstract   Article

Vikram Nanda, University of Michigan,  Zhi Wang, University of Michigan and Lu Zheng, University of Michigan
The ABCs of Mutual Funds: A Natural Experiment on Fund Flows and Performance
Abstract   Article

Discussants:
Bing Han, Ohio State University
Allan Timmermann, Rady School, University of California, San Diego
Andrew Caffrey, Ph. D. Candidate, Department of Economics, University of California, S

Consumption-Based Asset Pricing
Session Chair: Rajnish Mehra, University of California, Santa Barbara

Martin Lettau, New York University,  Sydney Ludvigson, New York University and Jessica Wachter, University of Pennsylvania
The Declining Equity Premium: What Role Does Macroeconomic Risk Play?
Abstract   Article

Adam Szeidl, Harvard University and Raj Chetty, University of California, Berkeley
Consumption Commitments and Asset Prices
Abstract   Article

Antonio Mele, London School of Economics
General Properties of Rational Stock-Market Fluctuations
Abstract   Article

Francis Longstaff, University of California, Los Angeles,  Pedro Santa Clara, University of California, Los Angeles and John Cochrane, University of Chicago
Two Trees: Asset Price Dynamics Implied by Market Clearing
Abstract   Article

Discussants:
Ravi Bansal, Duke University
Monika  Piazzesi, University of Chicago
Lior Menzly, University of Southern California
Anna Pavlova, Massachusetts Institute of Technology

Individual and Institutional Investors
Session Chair: Russ Wermers, University of Maryland

Ron Kaniel, Duke University,  Gideon Saar, New York University and Sheridan Titman, University of Texas at Austin
Individual Investor Sentiment and Stock Returns
Abstract   Article

Paul Irvine, University of Georgia,  Andy Puckett, University of Georgia and Marc Lipson, University of Georgia
Tipping
Abstract   Article

Laura Frieder, University of California, Los Angeles
Earnings Announcements, Order Flow, and Returns
Abstract   Article

Ning Zhu, University of California, Davis,  William Goetzmann, Yale University,  Ravi Dhar, Yale University and Shepherd Shane, University of California, Los Angeles
The Impact of Clientele Changes: Evidence from Stock Splits
Abstract   Article

Discussants:
Lawrence Harris, University of Southern California
Kent Womack, Dartmouth University
Soeren Hvidkjaer, University of Maryland at College Park
Nagpurnanand Prabhala, University of Maryland at College Park

Repurchases
Session Chair: Roni Michaely, Cornell University

Dennis Oswald, London Business School and Steven Young, Lancaster University
Open Market Share Reacquisitions, Surplus Cash, and Agency Problems
Abstract   Article

Rajdeep Patgiri, INSEAD,  Massimo Massa, INSEAD,  Jose-Miguel Gaspar, ESSEC,  Pedro Matos, INSEAD and Zahid Rehman, INSEAD
Can Buybacks be a Product of Shorter Shareholder Horizons?
Abstract   Article

Allan Eberhart, Georgetown University and Akhtar Siddique, Office of the Comptroller of the Currency
Why are Stock Buyback Announcements Good News?
Abstract   Article

Discussants:
Gustavo Grullon, Rice University
Yaniv Grinstein, Cornell University
Michael Roberts, Duke University

Managerial Ownership and Incentives
Session Chair: Marianne Bertrand, University of Chicago

David Yermack, New York University
Flights of Fancy: Corporate Jets, CEO Perquisites, and Inferior Shareholder Returns
Abstract   Article

Belen Villalonga, Harvard University and Raphael Amit, University of Pennsylvania
How Do Family Ownership, Management, and Control Affect Firm Value?
Abstract   Article

Paul Gompers, Harvard University,  Joy Ishii, Harvard University and Andrew Metrick, University of Pennsylvania
Incentives vs. Control: An Analysis of U.S. Dual-Class Companies
Abstract   Article

Discussants:
Dirk Jenter, Massachusetts Institute of Technology
Francisco Perez-Gonzalez, Columbia University
Henri Servaes, London Business School

Insuring Retirement
Session Chair: Moshe Milevsky, York University

Thomas Davidoff, University of California, Berkeley,  Jeffrey Brown, University of Illinois, Urbana-Champaign and Peter Diamond, Massachusetts Institute of Technology
Annuities and Individual Welfare
Abstract   Article

Philip Dybvig, Washington University in St. Louis and Hong Liu, Washington University in St. Louis
Lifetime Consumption and Investment: Retirement and Constrained Borrowing
Abstract   Article

Marie-Eve Lachance, University of Pennsylvania
Retirement Income Insurance: A Do-It-Yourself Approach
Abstract   Article

Discussants:
John Ameriks, The Vanguard Group
Geoffrey H. Kingston, University of New South Wales
Edward Omberg, San Diego State University

Dynamic Models of Portfolio Choice
Session Chair: Yihong Xia, University of Pennsylvania

Marcin Kacperczyk, University of British Columbia
Asset Allocation under Distribution Uncertainty
Abstract   Article

Leping Wang, Singapore Management University
Investing When Volatility Fluctuates
Abstract   Article

Michael Brandt, Duke University and Pedro Santa-Clara, University of California, Los Angeles
Dynamic Portfolio Selection by Augmenting the Asset Space
Abstract   Article

Sinan Tan, New York University and Anthony Lynch, New York University
Multiple Risky Assets, Transaction Costs and Return Predictability: Implications for Portfolio Choice
Abstract   Article

Discussants:
Neng Wang, University of Rochester
Francisco Gomes, London Business School
Marcel Rindisbacher, University of Toronto
Hong Liu, Washington University in St. Louis

Taxes and Financial Markets
Session Chair: James Poterba, Massachusetts Institute of Technology

Laura Starks, University of Texas at Austin,  Li Yong, University of Texas at Austin and Lu Zheng, University of Michigan
Tax-Loss Selling and the January Effect: Evidence from Municipal Bond Closed-End Funds
Abstract   Article

Robert Dammon, Carnegie Mellon University,  Chester Spatt, Carnegie Mellon University and Securities and Exchange Commission and Harold Zhang, University of North Carolina
Taxes, Estate Planning and Financial Theory: New Insights and Perspectives
Abstract   Article

Katharina Lewellen, Massachusetts Institute of Technology and Jonathan Lewellen, Massachusetts Institute of Technology
Internal Equity, Taxes, and Capital Structure
Abstract   Article

Li Jin, Harvard University
Capital Gain Tax Overhang and Price Pressure
Abstract   Article

Discussants:
John Chalmers, University of Oregon
James Poterba, Massachusetts Institute of Technology
Joshua Rauh, University of Chicago
Scott Weisbenner, University of Illinois

Financial Institutions and Economic Development
Session Chair: Ross Levine, University of Minnesota

Simon Johnson, International Monetary Fund and Daron Acemoglu, Massachusetts Institute of Technology
Unbundling Institutions
Abstract   Article

Stephen Haber, Stanford University and Noel Maurer, Harvard University
Related Lending and Economic Performance: Evidence from Mexico
Abstract   Article

Kathy He, University of Alberta,  Randall Morck, University of Alberta and Bernard Yeung, New York University
Corporate Stability and Economic Growth
Abstract   Article

Rafael La Porta, Darmouth College,  Florencio Lopez-de-Silanes, Yale University and Andrei Shleifer, Harvard University
What Works in Securities Laws?
Abstract   Article

Discussants:
Enrico Perotti, University of Amsterdam
Agusto De la Torre, The World Bank
Jean-Laurent Rosenthal, University of California, Los Angeles
Paolo Volpin, London Business School

Short-Sale Constraints and Stock Prices
Session Chair: Matthew Richardson, New York University

Robert Battalio, University of Notre Dame and Paul Schultz, University of Notre Dame
Options and the Bubble
Abstract   Article

Stewart Mayhew, U.S. Securities and Exchange Commission & University of Georgia and Vassil Mihov, Texas Christian University
Short Sale Constraints, Overvaluation, and the Introduction of Options
Abstract   Article

Lubos Pastor, University of Chicago and Pietro Veronesi, University of Chicago
Was There a Nasdaq Bubble in the Late 1990s?
Abstract   Article

Discussants:
Robert Whitelaw, New York University
Sorin Sorescu, Texas A&M University
Lasse Pedersen, New York University

Bankruptcy and Financial Distress
Session Chair: Lemma Senbet, University of Maryland

John Graham, Duke University and Krishna Narasimhan, University of Pennsylvania
Corporate Survival and Managerial Experiences During the Great Depression
Abstract   Article

Sergei Davydenko, London Business School and Julian Franks, London Business School
Do bankrupcty codes matter? A Study of Defaults in France, Germany, and the UK
Abstract   Article

Darrell Duffie, Stanford University and Ke Wang, Stanford University
Multi-Period Corporate Failure Prediction with Stochastic Covariates
Abstract   Article

Discussants:
Gordon  Phillips , University of Maryland
Kose John, New York University
Tyler Shumway, University of Michigan