27 April 2015
The betas of foreign stocks that are cross-listed on U.S. stock exchanges have been shown to change over time. Most of the change arises from greater integration between their home markets and the U.S., not from the event of cross-listing, according to Karen K. Lewis
. Among those companies for which this explanation does not apply, the betas change significantly after, not during, the cross-listing event.
24 April 2015
Exploring differences in state and local subsidies of college education and variations in education levels across the United States, John Kennan
finds that generous subsidies have significant effects on college enrollments, especially at community colleges. Effects on the educational level of the local labor force are long-lasting, and are only slightly dissipated through cross-state migration.
23 April 2015
Probing the effects of the 2002 “Beltway Sniper” attacks on student achievement in Virginia’s public schools, Seth Gershenson
and Erdal Tekin
find that the attacks significantly reduced proficiency rates in schools within five miles of an attack. Evidence of a causal effect is most robust for third grade reading and third and fifth grade math proficiency. Supplementary analyses suggest that these deleterious effects faded out in subsequent years.
22 April 2015
Mutual funds can reduce the tax burdens of their shareholders by investing in securities that are relatively lightly taxed and by avoiding realizing capital gains. Such strategies may constrain investment opportunities and might reduce before-tax performance. But an analysis of U.S. equity funds by Clemens Sialm
and Hanjiang Zhang
finds that funds which practice tax-efficient management do not underperform other funds.
21 April 2015
“Donor governance” occurs when contributors to non-profit institutions place restrictions on their gifts that limit the discretion of managers. In a study of U.S. art museums, David Yermack
finds that, when donor restrictions are strong, museums shift their cost structures away from administration and toward program services. They also exhibit very high savings rates, retaining in their endowments 45 cents of each incremental dollar donated.