Viral V. Acharya, Heitor Almeida, Yakov Amihud, and Ping Liu ♦ We investigate how firms manage financial default risk (on debt obligations) and operational default risk (on delivery obligations). Financially constrained firms reduce operational hedging through adjustments to inventory and…
Guido Baltussen, Bart Van Vliet, and Pim Van Vliet ♦ This study examines the cross-section of stock returns out-of-sample using a novel database of U.S. stocks between 1866 and 1926. Over this ‘pre-CRSP’ era (i) the relationship between market beta and returns…
Huafeng (Jason) Chen, Yinglu Deng, Pengfei Li, Hulai Zhang, and Hao Zhou ♦ Whether risk aversion is time varying and countercyclical is central to modern asset pricing, yet evidence remains limited and is based mainly on experimental, survey, or aggregate…
Roni Michaely, Silvina Rubio, and Irene Yi ♦ Using a novel dataset where institutional investors explain their votes—voting rationales—we provide direct evidence on the motivations behind votes against directors. Lack of independence and board diversity are the main stated reasons for…
Daniel A. Rettl, Alexander Schandlbauer, and Mircea Trandafir ♦ Using administrative data on the universe of firms in Denmark, we find that even temporary and small health shocks to employee health like seasonal influenza can significantly reduce firm profitability. The…
Tao Li, Pedro A. C. Saffi, and Daheng Yang ♦ We study interactions between activist hedge funds and large short sellers using European data on activist campaigns and mandatory disclosures of large short positions. Large short sellers are associated with…
