本文精选了管理学国际顶刊《Management Science》近期发表的论文，提供管理学研究领域最新学术动态。

What's in a Name? Eponymous Private Firms and Financial Reporting Quality

原刊和作者：

Management Science 2022年 3月

Alessandro Minichilli （Bocconi University）

Annalisa Prencipe （Bocconi University）

Suresh Radhakrishnan （University of Texas at Dallas）

Gianfranco Siciliano （China Europe International Business School）

Abstract

This study examines the relation between financial reporting quality (FRQ) and eponymy, that is, naming a firm after the founder. We hypothesize that compared with noneponymous firms, eponymous firms have higher FRQ because of reputation concerns. Using a sample of 2,271 large Italian private firms, we document that eponymy is positively associated with accrual-based FRQ measures, a Benford's law-based FRQ measure, and a tax-related misstatement-based FRQ measure. Consistent with the reputation concern rationale, we find that the positive association between eponymy and FRQ is attributable to eponymous firms that have rarer names or receive more press coverage. Furthermore, the positive association between FRQ and eponymy is similar whether the top executives/board members belong to the founding family's first or later generations. We also find that eponymous firms are more conditionally conservative. Collectively, the results suggest that reputation concerns act as a disciplining mechanism for FRQ in private firms.

Link: https://doi.org/10.1287/mnsc.2021.3974

Hedge Fund Manager Skill and Style-Shifting

原刊和作者：

Management Science 2022年 3月

George J. Jiang （Washington State University）

Bing Liang （University of Massachusetts Amherst）

Huacheng Zhang （Southwestern University of Finance and Economic）

Abstract

Using a novel style identification procedure, we show that style-shifting is a dynamic strategy commonly used by hedge fund managers. Three quarters of hedge funds shifted their investment styles at least once over the period from January 1994 to December 2013. We perform empirical tests of two hypotheses for the motivations of hedge fund style-shifting, namely backward-looking and forward-looking hypotheses. We find no evidence that style-shifting funds are backward-looking. Instead, we show evidence that managers of style-shifting funds exhibit both style-timing ability and the skill of generating abnormal returns in new styles. The new styles that hedge funds shift to on average outperform their old styles by 0.76% and style-shifting funds on average outperform their new style benchmark by 1.10% over the subsequent 12-month horizon. Finally, we show that small funds, winner funds, and funds with net inflows are more likely to shift styles.

Link: https://doi.org/10.1287/mnsc.2020.3945

Bank Dependence and Bank Financing in Corporate M&A

原刊和作者：

Management Science 2022年 3月

Sheng Huang （China Europe International Business School）

Ruichang Lu （Peking University）

Anand Srinivasan （National University of Singapore）

Abstract

We examine the valuation impact of bank-financed mergers and acquisitions (M&As) and the loan contracts used to finance M&A transactions, focusing on the difference between bank-dependent acquirers and other acquirers. We find that bankfinanced deals have higher acquirer's cumulative abnormal returns relative to other cash M&A deals, but this certification effect exists only for bank-dependent acquirers. Despite bank-dependent acquirers being more susceptible to hold-up, banks do not impose higher loan pricing or more stringent nonprice terms on them. After completion of the acquisition, bank-dependent acquirers retain the M&A financing banks for a much larger share of their borrowing needs, suggesting the importance of repeat business for lack of hold-up. Our findings highlight the positive aspects of bank dependence and the importance of implicit contracting for the lack of hold-up in lending markets.

Link: https://doi.org/10.1287/mnsc.2020.3947

Finance and Firm Volatility: Evidence from Small Business Lending in China

原刊和作者：

Management Science 2022年 3月

Tao Chen （Nanyang Technological University）

Yi Huang （Graduate Institute）

Chen Lin （University of Hong Kong）

Zixia Sheng （New Hope Financial Services）

Abstract

The online trading platform Alibaba provides financial technology (FinTech) credit for millions of micro, small, and medium-sized enterprises (MSMEs). Using a novel data set of daily sales and an internal credit score threshold that governs the allocation of credit, we apply a fuzzy regression discontinuity design (RDD) to explore the causal effect of credit access on firm volatility. We find that credit access significantly reduces firm sales volatility and that the effect is stronger for firms with fewer alternative sources of financing. We further look at firm exit probability and find that firms with access to FinTech credit are less likely to go bankrupt or exit the business in the future. Additional channel tests reveal that firms with FinTech credit invest more in advertising and product/sector diversification, particularly during business downturns, which serves as effective mechanisms through which credit access reduces firm volatility. Overall, our findings contribute to a better understanding of the role of FinTech credit in MS MEs.

Link: https://doi.org/10.1287/mnsc.2020.3942

The Informational Content of High-Frequency Option Prices

原刊和作者：

Management Science 2022年 3月

Diego Amaya （Wilfrid Laurier University）

Jean-François Bégin （Simon Fraser University）

Geneviève Gauthier （HEC Montréal）

Abstract

We propose the option realized variance as an observable variable to summarize the information from high-frequency option data. This variable aggregates intraday option returns from midquote prices to compute an option's total variability for a given day, providing additional information about the jump activity in the data generating process. Using the S&P 500 index time series and options data, this paper documents the performance of this realized measure in predicting the index realized variance as well as the equity and variance risk premiums. We estimate an option pricing model and analyze its parameter estimates. Our results show that excluding high-frequency option information produces significant differences in variance jump parameters, estimated risk premiums, and option pricing errors.

Link: https://doi.org/10.1287/mnsc.2020.3949

Hospital Financial Health and Clinical Choices: Evidence from the Financial Crisis

原刊和作者：

Management Science 2022年 3月

Manuel Adelino （Duke University）

Katharina Lewellen （Dartmouth College）

W. Ben McCartney （Purdue University）

Abstract

Financial constraints can cause firms to reduce product quality when quality is difficult to observe. We test this hypothesis in the context of medical choices at hospitals. Using heart attacks and child deliveries, we ask whether hospitals shift toward more profitable treatment options after a financial shock-the 2008 financial crisis. The crisis was followed by an unprecedented drop in hospital investments, yet the aggregate trends show no discrete shifts in treatment intensity post-2008. For cardiac treatment (but not for child deliveries), we find evidence that hospitals with larger financial losses during the financial crisis subsequently increased their use of intensive treatments relative to hospitals with smaller losses, consistent with the effects of financing constraints.

Link: https://doi.org/10.1287/mnsc.2020.3944