Sumit Agarwal, Gene Amromin, Itzhak Ben-David, and Douglas D. Evanoff ♦ We study a specific practice of predatory lending: borrowers being rejected and approved in rapid succession by the same lender. We show that in such cases borrower and contract…
Massimo Massa, David Schumacher, and Yan Wang ♦ We highlight an important but overlooked characteristic of financial fragility: “fragile” stocks command higher liquidity. This reduces their sensitivity to corporate actions with price impact and affects the firms’ incentives to engage…
Heitor Almeida, Slava Fos, Po-Hsuan Hsu, Mathias Kronlund, and Kevin Tseng ♦ Firms become more efficient at innovation when they face pressure to meet Earnings Per Share (EPS) targets and using stock repurchases. Using a regression-discontinuity framework, we find that incentives…
Bo Huang, Jiacui Li, Tse-Chun Lin, Mingzhu Tai, and Zoey Yiyuan Zhou ♦ We show that attention constraints on decision-makers create barriers to financial inclusion. Using administrative data on retail loan-screening processes, we find that attention-constrained loan officers exert less…
John M. Bizjak, Swaminathan L. Kalpathy, Vassil T. Mihov, and Jue Ren ♦ Using establishment-level data, we show that COVID-19 vaccinations boost business activity and firm performance in the United States. A 10% increase in vaccination rates results in a…
Charles J. Hadlock, Jing Huang, Paul Obermann, and Joshua R. Pierce ♦ We find that division managers who are connected to the CEO are substantially less likely than others to depart from the firm and are more likely to be…
