Zhe Li, Massimo Massa, Nianhang Xu, and Hong Zhang ♦ Can social norms give rise to distorted information in China? We observe that China’s leading social norm related to alcohol consumption and social drinking enhance earnings management. An analysis of…
Yukun Liu and Xi Wu ♦ Using firms’ online job postings, we identify economically related peer firms in the labor market. Firms’ labor peers are vastly different from their industry peers, where the overlap is about 20%. Returns of labor-linked…
Albert S. Kyle, Anna A. Obizhaeva, and Yajun Wang ♦ We study trading among strategic traders who may incorrectly assess the degree of market crowdedness. These mistakes distort equilibrium strategies and prices. When traders underestimate market crowdedness, they target larger inventories…
Natasha Burns, Kristina Minnick, Jeffry Netter, and Laura Starks ♦ Employing a cross-country sample, we examine how a population’s underlying cultural values help explain gender compensation variation across corporate executives. The results show that the cultural differences embedded in societies…
Heitor Almeida, Ruidi Huang, and Yuhai Xuan ♦ This paper documents a trend of declining flexibility in share repurchase policies over the last four decades. Share repurchases have become particularly sticky for firms that have repurchase programs in place. We…
Niclas Käfer, Mathis Mörke, and Tobias Wiest ♦ We document significant time-series and cross-sectional momentum in 28 equity option factors. Factor momentum is distinct from a static factor portfolio, and prominent option factor models cannot fully explain its returns. Despite…
