January 3, 2023

Jonathan Brogaard, Nhan Le, Duc Duy Nguyen, and Vathunyoo Sila ♦ Using three exogenous shocks to ex ante litigation risk, including federal judge ideology and two influential judicial precedents, we find that lower shareholder litigation risk reduces a firm’s propensity to delist from…

Mykola Babiak ♦ Contrary to leading asset pricing theories, recent empirical evidence indicates that financial markets compensate only short-term equity variance risk. An equilibrium model with generalized disappointment aversion risk preferences and rare events reconciles salient features of the variance…