Steven Wei Ho, Clark Liu, and Shujing Wang ♦ We investigate whether bank loan financing conveys valuable private information from 1994 to 2018 using a sample of over 10,000 bank loan announcements identified from 8-K filings. We show that the positive…
S. Katie Moon and Giorgo Sertsios ♦ We examine how changes in foreign labor regulations affect U.S. multinationals’ operating strategies. We show that firms with integrated operations in countries where labor regulations become tighter tend to establish arm’s-length relations with…
Kevin Aretz and Anastasios Kagkadis ♦ We show that the negative relation between real investments and future stock returns is primarily driven by the subsample of firms building additional capacity. We develop a real options model to rationalize that evidence…
Zsolt Katona, Marcus O. Painter, Panos N. Patatoukas, and Jean Zeng ♦ We use the introduction of satellite coverage of major retailers to study the capital market implications of unequal access to big data. Satellite data enabled sophisticated investors with…
Feng Cao, Yuhai Xuan, Rongli Yuan, and Hong Zou ♦ We use a novel experiment in China to examine the effects of having a quasi-official investor own a small number of shares on specific firm outcomes. We find that relative…
Christopher S. Jones and Sungjune Pyun ♦ We consider a model in which the correlation between shocks to consumption and to expected future consumption growth is nonzero and varies over time. We validate this assumption empirically using the model’s implication that time-variation in consumption…
