Young Jun Cho, Holly Yang, and Yue Zhao ♦ We argue that cross-ownership increases the private information embedded in stock prices, improving their feedback to managers. Consistent with this, we find that greater cross-ownership heightens a firm’s investment-q sensitivity, especially…
Yongqiang Chu, Zhanbing Xiao, and Yuxiang Zheng ♦ We show that banks use industry knowledge acquired through corporate lending in mortgage lending, a phenomenon we refer to as the “industry expertise channel.” Specifically, we find that banks that specialize in…
Yunzhi Hu, Zhaojun Yang, and Nanhui Zhu ♦ We develop a continuous-time model examining agency conflicts among controlling shareholders (managers), minority shareholders, and creditors in corporate investment decisions. The manager’s private benefits encourage over-investment, while their equity stake and debt…
J. Anthony Cookson, Vyacheslav Fos, and Marina Niessner ♦ Using high-frequency disagreement data from the investor social network StockTwits, we find that greater unsophisticated disagreement facilitates informed buying and selling. During periods of overvaluation, the facilitating effect of disagreement on…
Hearty congratulations to Joseph Engelberg, R. David McLean, Jeffrey Pontiff, and Matthew C. Ringgenberg, Do Cross-Sectional Predictors Contain Systematic Information? May 2023, Vol. 58, No. 3, pp. 1172-1201 and Andrew Y. Chen, and Mihail Velikov, Zeroing In on the Expected Returns…
The JFQA Managing Editors are pleased to welcome Zacharias Sautner, Pab Jotikasthira, Zhenyu Gao, Olivier Dessaint, and Xiaoyan Zhang to the Editorial Board as Associate Editors! We’ve benefited immensely from their dedicated reviewing over the years and look forward to…
