René M. Stulz, James Tompkins, Rohan Williamson, and Zhongxia (Shelly) Ye ♦ While the Dodd-Frank Act (DFA) mandates board risk committees for large banks, we argue that such committees do not benefit all banks. Banks forced by the DFA to…
Hua Cheng, Steve Liu, Zheng Qiao, and Jay Wang ♦ In contrast to the lazy prices phenomenon (Cohen, Malloy, and Nguyen (2020)) in the stock market, more 10-K textual changes lead to larger increases in volatility smirks—consistent with options traders…
Jarrad Harford, Xing Li, Jiaren Pang, Haibin Wu, and Liu Zheng ♦ We investigate the role of social capital in mitigating hold-up problems along the supply chain. We find that supplier firms are more willing to make relationship-specific investments (proxied…
Mancy Luo, Alberto Manconi, and Massimo Massa ♦ We study the acquisition of Dow Jones & Co. by News Corporation in 2007 as a shock to the political affiliation of Dow Jones outlets. Following the acquisition, Republican- (Democrat-) aligned stocks…
Jie Cao, Gang Li, Xintong (Eunice) Zhan, and Guofu Zhou ♦ We examine time-series stock market excess return predictability by aggregate stock option order imbalance. While individual-level call order imbalance (CIB) captures informed trading and positively predicts cross-sectional stock returns,…
Andrew Ellul, Marco Pagano, and Annalisa Scognamiglio ♦ Past research has documented a substantial finance wage premium. We examine whether this premium reflects differences in lifetime career opportunities. Using resume data, we reconstruct career trajectories in finance and non-finance sectors…
