John (Jianqiu) Bai, Massimo Massa, Chi Wan, and Yan Wang ♦ Using online job postings from 2007 to 2021, we create a firm-level metric of local labor market concentration. Firms in more concentrated labor markets tend to have higher financial…
Young Jun Cho, Holly Yang, and Yue Zhao ♦ We argue that cross-ownership increases the private information embedded in stock prices, improving their feedback to managers. Consistent with this, we find that greater cross-ownership heightens a firm’s investment-q sensitivity, especially…
Yongqiang Chu, Zhanbing Xiao, and Yuxiang Zheng ♦ We show that banks use industry knowledge acquired through corporate lending in mortgage lending, a phenomenon we refer to as the “industry expertise channel.” Specifically, we find that banks that specialize in…
Yunzhi Hu, Zhaojun Yang, and Nanhui Zhu ♦ We develop a continuous-time model examining agency conflicts among controlling shareholders (managers), minority shareholders, and creditors in corporate investment decisions. The manager’s private benefits encourage over-investment, while their equity stake and debt…
J. Anthony Cookson, Vyacheslav Fos, and Marina Niessner ♦ Using high-frequency disagreement data from the investor social network StockTwits, we find that greater unsophisticated disagreement facilitates informed buying and selling. During periods of overvaluation, the facilitating effect of disagreement on…
Zhi Li, Qiyuan (Rachel) Peng, and Rui-Zhong (R.Z.) Zhang ♦ Using individual records of about 950,000 financial advisors, we find that the probability and intensity of financial advisor misconduct significantly increase after local newspaper closures. The impact is more pronounced…
