Michael Gelman and Amir Shoham ♦ Most financial advisers have no history of misconduct, yet little is known about how honest advisers respond to misconduct at their firms. In this paper, we show that honest advisers are more likely to…
Tor-Erik Bakke, Laura Casares Field, Hamed Mahmudi, and Aazam Virani ♦ We study the impact of a principles-based regulatory approach to female board representation, requiring firms to disclose a gender diversity policy or explain its absence. Post-regulation, firms respond with…
Zhanbing Xiao ♦ I find that exposed firms address heat challenges by shifting toward more capital-intensive production functions, increasing capital expenditures and R&D expenses, acquiring robotics-related human capital, and developing automation-related technologies. These effects are concentrated among firms facing large…
Hyeyoon Jung, Joao A.C. Santos, and Lee Seltzer ♦ We propose a new approach to estimate banks’ credit exposures to transition risks that combines sectoral effects of climate policies from general equilibrium (GE) models with historical information on loans’ default…
Youchang Wu and Xuanyu Bai ♦ We examine the effect of private equity buyouts on environmental performance of U.S. fossil fuel power plants. Output-scaled CO2 emissions are, on average, 4.2% lower after buyouts, predominantly because of fuel-saving improvements in production…
Sunil Wahal and Albert Y. Wang ♦ We measure flow diversification in mutual funds using the cross-sectional correlation of daily flows across investor clienteles. Greater flow diversification is associated with lower future flow volatility, smaller subsequent outflows, and lower cash…
