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Analyzing 916 CDOs, we find that a top credit rating agency frequently made positive adjustments beyond its main model that amounted to 12.1% larger AAA tranche sizes. These adjustments are difficult to explain by likely determinants, but exhibit a clear pattern: CDOs with smaller model-implied AAA sizes receive larger adjustments. CDOs with larger(More)
* This paper was started while Gillan was with the TIAA-CREF Institute. The views expressed in this paper are those of the authors and do not necessarily reflect those of TIAA-CREF. We would like to thank Abstract We provide arguments and present evidence that corporate governance structures are composed of interrelated mechanisms, which are in turn(More)
This paper analyzes the impact of corporate governance on firm value using a sequence of reforms in India (Clause 49) enacted in 2000, for which more severe penalties were introduced in 2004. The reforms did not apply to all firms and resulted in treatment and control groups of firms with overlapping characteristics. A difference‐in‐difference approach(More)
The rapidly growing literature studying the relationship between legal origin, investor protection, and finance has stimulated an important debate in academic circles. It has also generated a number of applied research projects and strong policy statements. This paper discusses the implications, in particular for developing and transition countries, from(More)
For helpful comments and conversations, we are grateful to Abstract In a corporate freez-eout, the controller is required to compensate minority shareholders for the no-freezeout value of their shares that are taken from them. This paper seeks to highlight the difficulties involved in determining this no-freezeout value when, as is often the case, the(More)
This paper examines the causal impact of corporate governance on firm value, using a sequence of corporate governance reforms in India. Our results, taken together, present a strong case for a causal effect of the reforms on firm value. They also underscore the importance of the enactment of severe sanctions, though it is not entirely clear whether this(More)
State regulations affect various aspects of the contractual relationships between alcohol producers, distributors, and retailers. State laws governing the beer industry mandate that brewers grant wholesalers exclusive territories, prohibit exclusive dealing contracts between brewers and wholesalers, and restrict brewers' ability to terminate wholesalers.(More)
This paper examines if Minority small business borrowers have equal access to loans from financial institutions than similar White borrowers. Using matching methods, we find that African-American borrowers are rejected at a higher rate (17-22% higher) than similar risk White-owned firms. There is therefore a causal impact of discrimination for(More)
Exploiting a large new database, this article explores the incorporation choices of closely held U.S. corporations. The majority of corporations in our sample incorporate in the state in which their primary place of business (PPB) is located. However, among the corporations with 1000 or more employees, only about half incorporate in their PPB state, and of(More)