Jacques Olivier ♦ I ask whether hedgers who speculate should be regulated differently from other speculators in a model where information acquisition is endogenous and information has real effects. Hedging benefits and feedback effect generate strategic complementarities between market-maker, firm…
Xikai Chen, Jinjun (Ricky) Ke, and Yu Flora Kuang ♦ We examine whether free-speech protections influence corporate environmental performance. Using the staggered enactment of U.S. anti-SLAPP statutes in a stacked difference-in-differences design from 1990 to 2019, we find that these…
Mehmet Ihsan Canayaz ♦ China’s Belt and Road Initiative (BRI) aims to create economic corridors encompassing two-thirds of the world’s population and 40% of global GDP. Using the inauguration of a railway tunnel between Europe and Asia as a quasi-natural…
Todd A. Gormley and Manish Jha ♦ Institutional investors conduct more governance research and are less likely to follow proxy advisor vote recommendations when a company’s bonds comprise a larger share of their assets. These findings are driven by bond…
Kyoo il Kim, Suyong Song, and Jiawei (Brooke) Wang ♦ We study the classical relationship between a firm’s investment and Tobin’s q, for which an unobserved persistent shock is an important factor of investment decision. In our setting, besides the…
Nils Lohmeier and Hannes Mohrschladt ♦ We propose and test a catering theory of earnings guidance. As predicted by our model, managers cater to reference point dependent investor preferences by issuing excessively optimistic earnings forecasts if their investors have experienced…
