arXiv subjects

Douglas Cumming

Publications and source records attributed to Douglas Cumming.

5 recordsLinked to original sources

arXiv2026

Not All Family Firms Are Alike: How Founder-Led and Governance-Entrenched Family Control Shape the Trading Environment Around the Firm

Family-firm scholarship offers competing predictions about whether family control protects or threatens market integrity. We argue that the answer depends on how family involvement is exercised. Drawing on socioemotional wealth and agency-entrenchment perspectives, we examine 8,634 U.S. firm-years (2007-2018) and link family-firm constructs to exchange-generated surveillance flags from NASDAQ SMARTS. Founder-CEO control is associated with approximately 9.5% fewer flags, family governance involvement with 21.3% more, and deep multi-generational family control with 47.1% more. The findings reveal heterogeneous identity and entrenchment mechanisms within family firms and connect family-firm governance to a market-integrity outcome previously absent from the literature.

econ.GN↗

arXiv2026

How Disruptive is Financial Technology?

We study whether Fintech disrupts the banking sector by intensifying competition for scarce deposits funds and raising deposit rates. Using difference-in-difference estimation around the exogenous removal of marketplace platform investing restrictions by US states, we show the cost of deposits increase by approximately 11.5% within small financial institutions. However, these price changes are effective in preventing a drain of liquidity. Size and geographical diversification through branch networks can mitigate the effects of Fintech competition by sourcing deposits from less competitive markets. The findings highlight the unintended consequences of the growing Fintech sector on banks and offer policy insights for regulators and managers into the ongoing development and impact of technology on the banking sector.

econ.GN↗

arXiv2025

Banking system stability: A global analysis of cybercrime laws

We examine the role of cybercrime legislation around the world in shaping the stability of the banking system. We compile a novel dataset covering the enactment of cybercrime legislation in 132 developed and developing countries to empirically test this research question. We find that the enactment of cybercrime laws enhances the stability of the banking sector. This key finding holds across a comprehensive suite of robustness tests, including alternative measures of bank stability and model specifications. We document significant cross-sectional heterogeneity, with the effect being more pronounced in countries with heavier penalties for illegal cyber activities and legal frameworks that hold banks accountable for their cybersecurity practices. In addition, the positive impact is stronger in jurisdictions with greater international legal cooperation and effective enforcement mechanisms. We further investigate two channels (i.e., funding liquidity and operational risk) through which cybercrime laws may influence bank stability. Our results indicate that these laws can significantly bolster bank stability by enhancing funding liquidity and mitigating operational risk. Overall, our study highlights the crucial role of cybercrime legislation in fostering a secure and resilient banking environment. It offers new insights into how these laws contribute to bank stability on both individual and systemic levels.

econ.GN↗

arXiv2025

Poverty and Perceptions of Electoral Integrity in the U.S

We propose two opposing forces that impact the relation between electoral integrity and poverty. On the one hand, it is more costly to provide electoral integrity in states where there is more poverty due to transaction costs and opportunity costs. On the other hand, extreme levels of poverty attract media scrutiny and greater external monitoring of electoral integrity, giving rise to more demand for electoral integrity. Taken together, we expect electoral integrity to be a U-shaped function of poverty. We also hypothesize that electoral integrity will vary depending on the strength of state electoral laws. Expert-level survey data on electoral integrity from the 2016 U.S. Presidential election and the 2018 U.S. congressional election, in combination with U.S. state-level data on poverty are strongly consistent with these predictions.

econ.GN↗

arXiv2025

The Revenue of Finance Journals: Networks, Pricing Power, and Publication Volume

I study commercial revenue at 26 finance journals over 1999-2025, exploiting the Elsevier Finance Journal Ecosystem as a quasi-natural experiment. Using synthetic control, ecosystem membership generated approximately 54-59 million USD in projected long-run revenue. The effect is highly concentrated: four journals account for 95 percent of the gain. Decomposing the effect, 89 percent operates through expanded publication volume rather than per-paper price increases. The citation channel dominates: ecosystem coordination elevated measured impact metrics, attracting additional submissions and generating article-processing-charge revenue through publication volume. The findings speak to the economics of coordinated networks in information-goods markets.

econ.GN↗