Steven Ongena, Sara Pinoli, Paola Rossi, and Alessandro Scopelliti ♦ What are the benefits of access to the bond market for unlisted firms, and how does it affect their bank lending conditions? Using a regulatory reform that allowed unlisted firms…
Patrick Augustin, Linxiao Francis Cong, Alexandre Corhay, and Michael Weber ♦ We develop a capital structure model in which firms have a differential flexibility in adjusting output prices to shocks. Inflexible-price firms have lower profits and higher cash-flow volatility, leading…
Anup Agrawal, Binay K. Adhikari, and Bina Sharma ♦ We exploit US states’ staggered adoption of Universal Demand (UD) laws to study how the risk of shareholder lawsuits affects insider trading. UD laws, which make it harder for shareholders to…
Travis Chow, Allen H. Huang, Kai Wai Hui, and Terry Shevlin ♦ We investigate whether judges’ political ideology affects corporate tax behaviors. We find firms engaging in less aggressive tax planning when Circuit Court judges are more liberal. Cross-sectionally, the…
Anup Agrawal and Yuree Lim ♦ Under Title II of JOBS Act, firms can sell private placement securities to the public via general solicitation (GS) or privately (non-GS). We find that equity offerings under GS tend to be riskier than…
Wenbin Cao, Xiaoman Duan, and Hening Liu ♦ We develop a real options model in which an entrepreneur facing ambiguity makes optimal investment and financing decisions for an innovation project. We introduce jumps in innovation returns and model investors’ aversion…
