Scott Guernsey, Matthew Serfling, and Cheng Yan ♦ After medical marijuana legalization (MML) by U.S. states, firms’ cost of equity (COE) decreases, especially for those with more growth opportunities, higher productivity, or a more skilled workforce. This policy change also…
Seth Armitage and Woon Sau Leung ♦ Exploiting changes in countries’ competition laws, we find that competition increases firms’ propensity to use zero leverage (ZL). We test the financial-flexibility, financial-constraint and quiet-life explanations for this result, concluding that desire for…
Kentaro Asai and Dong Beom Choi ♦ This study provides direct evidence of the association between debt-equity conflict and investment efficiency in financially distressed firms. Leveraging a unique institutional setting in Japan, we examine the impact of lender-affiliated directors on…
Yuan Xue, Bohui Zhang, and Xiaofeng Zhao ♦ Practical real-world activities consume energy and emit thermal infrared radiation (TIR). On the basis of this physical fact, we develop a measure for directly gauging firms’ operating activities. Specifically, we exploit satellite data…
Kateryna V Holland and Esther Im ♦ This study examines how changes in political leadership and rising U.S. polarization flow through societal culture to corporate culture. Using quasi-experimental methods, we find that executives adjust culture messaging in earnings calls on…
Christian T. Lundblad, Donghui Shi, Xiaoyan Zhang, and Zijian Zhang ♦ Using a proprietary dataset covering all foreign investors’ daily trades in the Chinese stock market from 2016 to 2019, we find that foreign order flows, facilitated by regulatory liberalization…
