CONSOB - EIEF Seminar: Thierry Foucault - HEC Paris

July 5, 2013
1:00 pmto2:30 pm

News Trading and Speed

CONSOB - EIEF Seminar: Daniel Ferreira - London School of Economics

June 3, 2013
12:00 pmto1:30 pm

Unfriendly Creditors (with Miguel Ferreira and Beatriz Mariano)


We develop a theory of how debt financing affects, and is affected by, the composition of the board of directors. We argue that shareholders and creditors have different preferences for the degree of board independence from management. Although shareholders often prefer a management-friendly board in order to improve communication between managers and directors, creditors usually prefer an unfriendly board. The model provides a useful framework for understanding many empirical regularities related to capital structure and corporate governance. In line with the existing evidence, we show that the optimal capital and board structures are such that firms with high leverage choose less friendly boards. We also show that the optimal debt contract includes covenants that allocate rights to appoint board directors to creditors in states of financial distress. Using a large sample of debt covenant violations, we test this prediction with a regression discontinuity design and find a significant increase in board independence following a covenant violation. A covenant violation implies a net addition of one independent director to the board, which is a sizeable effect. We conclude that creditors use the threat of accelerating loan payments to enhance the monitoring role of the board and maximize the repayment of outstanding debt.

Nicola Fuchs-Schündeln - Goethe University Frankfurt

June 20, 2013
5:30 pmto7:00 pm

Long-Lasting Effects of Socialist Education

Matthew S. Shum - California Institute of Technology

June 11, 2013
5:30 pmto7:00 pm

Inside Intel: Sales Forecasting using an Information Aggregation Mechanism

Lunch Seminar: Andrey Malenko - MIT

March 28, 2013
1:00 pmto2:00 pm

Means of Payment and Timing of Mergers and Acquisitions in a Dynamic Economy

Paolo Paruolo - University of Insubria, Varese Italy

April 11, 2013
5:30 pmto7:00 pm

Impulse responses and cointegration: no country for young men?

The talk will be based on the following papers:
(a) Fanelli L., P. Paruolo (2010) “Speed of adjustment in cointegrated systems“, Journal of Econometrics 158, 130-141
(b) Omtzigt P., P. Paruolo (2005) “Impact Factors“, Journal of Econometrics 128, 31-68

Wilbert van der Klaauw - FED of New York

March 28, 2013
5:30 pmto7:00 pm

Inflation Expectations and Behavior: Do Survey Respondents Act on their Beliefs?

Krzysztof Wozniak - NYU Stern (Job Market Seminar)

February 21, 2013
5:00 pmto6:30 pm

Vertical Restraints in the Movie Exhibition Industry

Anna Milanez - Harvard University (Job Market Seminar)

February 1, 2013
5:30 pmto7:00 pm

The Human Capital Costs of Financial Constraint

Alessandro Dovis - University of Minnesota (Job Market Seminar)

February 11, 2013
5:00 pmto6:30 pm

Efficient Sovereign Default