Ming Zeng ♦ Returns to currency carry and momentum compensate for the risk of global interest rate volatility (IRV ), with risk exposures explaining 92% of the cross-sectional return variations. This unified explanation stems from its impact on FX intermediaries.…
Lars Norden, Chao Yin, and Lei Zhao ♦ We find firm cyclicality decreases by 40% after the inception of credit default swap (CDS) trading. The effect stems from CDS firms’ less aggressive asset growth in good times and is stronger…
Kizkitza Biguri and Jörg R. Stahl ♦ We analyze meetings of firms with policymakers at the European Commission (EC). Meetings with Commissioners are associated with positive abnormal equity returns for US firms. Firms of the European Union (EU), however, do…
Todd Henderson, Irena Hutton, Danling Jiang, and Matt Pierson ♦ We study when CEOs with legal expertise are valuable for firms. In general, lawyer CEOs are negatively associated with frequency and severity in employment civil rights, contract, labor, personal injury,…
Nam Nguyen, Alejandro Rivera, and Harold H. Zhang ♦ We demonstrate that investment income taxes incentivize capital allocation to the eco-friendly green sector away from the non-eco-friendly brown sector in a stylized economy. This tax reduces the arrival intensity of…
Paul Glasserman, Fulin Li, and Harry Mamaysky ♦ The speed of stock price reaction to news exhibits substantial time variation. Higher risk-bearing capacity of financial intermediaries, lower passive ownership of stocks, and more informative news increase price responses to contemporaneous…
