Xiaoran Huang, Massimo Massa, and Lei Zhang ♦ We examine the relationship between shareholder leverage constraints and corporate risk-taking, focusing on its impact on debtholders. Our findings show that mutual fund leverage constraints are related to more risk-taking activities of…
Ben Charoenwong, Zhenghui Ni, and Qiaozhi Ye ♦ Active equity mutual funds owning shares in product market competitors have higher risk-adjusted returns, even after fees. This positive association comes from their common ownership positions, and remains robust after controlling for…
George Skiadopoulos and Cheng Xue ♦ We document that climate-triggered institutional portfolio rebalancing affects S&P 500 firms’ cost of equity through climate change price pressure (CCPP). Using a demand-based asset pricing framework, we estimate firm-level CCPP from physical and transition…
Peter Brok ♦ Empirically, the effect of corporate tax rates on leverage has been smaller than expected based on trade-off theory. In this paper, I show that tax avoidance functions as a non-debt tax shield, reducing the benefits of the…
Simi Kedia and Ankur Pareek ♦ We use a sharp RDD to show that victories by women candidates in close House, Senate, and gubernatorial elections increase female directors in local firms. The causal effect is higher when candidate’s media coverage is…
Paul Schultz ♦ Stocks that are expensive to borrow underperform significantly and for long periods of time. Every share must be held by an investor who doesn’t lend it out and hence loses money. I find no evidence that investors…
