2000 to 2008 Changes in state compulsory Dummy variables for years of Years of schooling completed No Cole, Paulsen, and Shastry (RFS) education laws compulsory schooling data in this paper but papers before have validated the shock balance 2002 SOX Post-shock dummy Presence of an investment Yes Huang, Jiang, Lee, and Yang (JFE) banker on the board 2000-2003 SOX and other Dummy for free float in 2002 Compliance with Section 404 Yes Lee, Strong, and Zhu (JAR) disclosure and analyst (pre shock) <75 Million (the in 2004 (post shock) regulations in the U.S. threshold above which Section 404 is enforced) 1H 5 Death of non-CEO executives Number of non-CEO executives Fraction of executives Yes Khanna, Kim, and Lu (JF) 2015 and directors who died during CEO tenure appointed during CEO tenure Changes in jumbo mortgage Post-shock * percent of loan Changes in house prices Yes Loutskina and Strahan (JFE) loan cutoffs applicants within 5% of jumbo cutoff pre-shock, also interaction with supply elasticity 2001 Decimalization of stock Post-shock dummy *pre-shock liquidity Yes Norli, Ostergaard, and Schindele (RFS) prices in the US firm size Regulation FD Post-shock dummy Information asymmetry Yes Petacchi (JAE) (probability of informed trading) Gender of first-born child of Dummy for male first-born Succession of CEO by a Two shocks Tsoutsoura (JF) – departing entrepreneur in child family member gender of Greece first born and tax reform. Panel data pre-tax reform 32 24 different types papers
2000 to 2008 Changes in state compulsory education laws Dummy variables for years of compulsory schooling Years of schooling completed No data in this paper but papers before have validated the shock balance Cole, Paulsen, and Shastry (RFS) 2002 SOX Post-shock dummy Presence of an investment banker on the board Yes Huang, Jiang, Lee, and Yang (JFE) 2000-2003 SOX and other disclosure and analyst regulations in the U.S. Dummy for free float in 2002 (pre shock) <75 Million (the threshold above which Section 404 is enforced) Compliance with Section 404 in 2004 (post shock) Yes Lee, Strong, and Zhu (JAR) 1H 2015 5 Death of non-CEO executives and directors Number of non-CEO executives who died during CEO tenure Fraction of executives appointed during CEO tenure Yes Khanna, Kim, and Lu (JF) Changes in jumbo mortgage loan cutoffs Post-shock * percent of loan applicants within 5% of jumbo cutoff pre-shock, also interaction with supply elasticity Changes in house prices Yes Loutskina and Strahan (JFE) 2001 Decimalization of stock prices in the US Post-shock dummy *pre-shock firm size liquidity Yes Norli, Ostergaard, and Schindele (RFS) Regulation FD Post-shock dummy Information asymmetry (probability of informed trading) Yes Petacchi (JAE) Gender of first-born child of departing entrepreneur in Greece Dummy for male first-born child Succession of CEO by a family member Two shocks – gender of first born and tax reform. Panel data pre-tax reform Tsoutsoura (JF) 32 papers 24 different types
Shock-based%20IV%20design%20MS-2018-0530-clean.docx