This paper examines underwriter reputation loss by using a sample of investment banks that have served corporate clients prior to the discovery of clients' alleged financial reporting fraud. The results indicate that underwriters lose reputation upon the filing of lawsuits against their clients....

This paper studies how competition lowers underwriters' incentive to screen clients in the bond market during 1996-2000. Responding to the intensified competition due to commercial bank entry, underwriters appeared to co-lead (work in groups) in lower quality deals but maintained their...

This paper constructs a measure of niche reputation arising from the comparative advantages of different types of underwriters. The relation between niche reputation and fees is used to gauge the impact of commercial bank entry on the market structure of bond underwriting. During 1991-1996,...

This paper studies the decision of lead investment banks to organize hybrid syndicates (commercial banks participating as co-managers) versus pure investment bank syndicates. The findings show that hybrid underwriting issues are more challenging to float. Compared to pure investment bank...

Prior research documents that commercial banks underwrite bonds with lower net yields than investment banks and concludes that commercial banks are superior underwriters. However, such a conclusion is inconsistent with the observed prominent role of investment banks in underwriting. This paper...

This paper examines the relation between managerial power and compensation for Chief Executive Officers of S&P 500 companies from 1993 through 2012. We find that more-powerful CEOs earn more than less-powerful CEOs. We refer to this additional compensation as a “power premium” and...

We examine whether media coverage influences firms' debt financing and, more importantly, the channels through which it occurs. We find that more media coverage significantly reduces firms' reliance on bank loans while increasing their nonbank debt financing. This effect is concentrated among...

This paper tests the monitoring concentration hypothesis that loan participants can transfer monitoring incentives back to lead arrangers by purchasing credit default swaps (CDSs) from lead arrangers with the capacity to sell such contracts. Monitoring concentration appears to play a significant...

This study investigates the relation between the use of explicit employment agreements (EA) and CEO compensation. Overall, our findings are broadly consistent with the predictions of Klein, Crawford, and Alchian (1978) that an EA is used to induce CEOs to make firm-specific human capital...

The economic damage caused by the 2008 financial crisis is unprecedented. It caught many market participants by surprise. In this paper, we provide evidence that institutional investors have private information about the impendent crisis. In particular, institutional investors reduce their...