Bei Chen and Quan Gan ♦ We show that firms’ left-tail risk positively predicts future returns of crash insurance. We proxy crash insurance with bear spreads, an option trading strategy that profits when extreme negative returns occur. Crash insurance for…
Kai Li, Qiyuan Peng, Rui Shen, and Gabriel Wong ♦ Using a hand-collected sample of 18,269 equity analysts from 42 countries over the period 2004-2019, we establish an intriguing negative association between a country’s institutional/economic development and its female share…
Inkee Jang and Kee-Youn Kang ♦ We develop a dynamic model of debt contracts with adverse selection. Entrepreneurs borrow investment goods from lenders to run businesses whose returns depend on entrepreneurial productivity and common productivity. Entrepreneurial productivity is the entrepreneur’s…
Allen H. Huang, Kai Wai Hui, and Yue Zheng ♦ Although federal judges are the ultimate arbiters of insider trading enforcement, the role of their political ideology in insider trading is unclear. Using the partisanship of judges’ nominating presidents to…
Joan Farre-Mensa, Roni Michaely, and Martin Schmalz ♦ We find that 43% of firms that make payouts also raise capital during the same year, resulting in 31% of aggregate payouts being externally financed, primarily with debt. Most financed payouts cannot…
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…
