George Constantinides, Maurizio Montone, Valerio Potì, and Stella Spilioti ♦ Earlier research finds correlation between sentiment and future economic growth, but disagrees on the channel that explains this result. We shed new light on this issue by exploiting cross-sectional variation…
Cheng Jiang, Kose John, Kyeong Hun Lee, Emma Q. Xu ♦ We construct a measure (fLMA) of the extent to which neighboring firms hire similar types of workers, based on the similarity between the labor profile of a firm and…
Bidisha Chakrabarty, Terrence Hendershott, Samarpan Nawn, and Roberto Pascual ♦ We examine hidden orders usage by algorithmic traders (ATs) and non-ATs. ATs extensively use hidden orders but of smaller size than non-ATs, who are the primary contributors to hidden volume.…
Léa Stern ♦ This paper studies the importance of corporate boards through a learning model in which capital markets learn about incoming directors’ quality. The model’s predictions are tested across a large sample of director appointments. Estimates show that governance-related…
William Grieser, Ioannis Spyridopoulos, and Morad Zekhnini ♦ We show that a firm’s financial constraints trigger investment disruptions that propagate through the production network. Propagation effects account for about half of the total investment reduction due to constraints. Network rigidities…
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…
