Jianying Qiu, Gijs van de Kuilen, Utz Weitzel, and Yilong Xu ♦ We administer a theory-driven, lab-in-the-field experiment to study the disposition effect among financial professionals. Our novel design identifies, at the individual participant level, key behavioral drivers of the…
Kentaro Asai and Dong Beom Choi ♦ This study provides direct evidence of the association between debt-equity conflict and investment efficiency in financially distressed firms. Leveraging a unique institutional setting in Japan, we examine the impact of lender-affiliated directors on…
Yuan Xue, Bohui Zhang, and Xiaofeng Zhao ♦ Practical real-world activities consume energy and emit thermal infrared radiation (TIR). On the basis of this physical fact, we develop a measure for directly gauging firms’ operating activities. Specifically, we exploit satellite data…
Kateryna V Holland and Esther Im ♦ This study examines how changes in political leadership and rising U.S. polarization flow through societal culture to corporate culture. Using quasi-experimental methods, we find that executives adjust culture messaging in earnings calls on…
Christian T. Lundblad, Donghui Shi, Xiaoyan Zhang, and Zijian Zhang ♦ Using a proprietary dataset covering all foreign investors’ daily trades in the Chinese stock market from 2016 to 2019, we find that foreign order flows, facilitated by regulatory liberalization…
Rui Albuquerque, Yrjo Koskinen, and Raffaele Santioni ♦ This paper studies how ESG and conventional mutual funds trade stocks during the COVID-19 crash. Both fund types trade individual stocks similarly: net purchases of ESG stocks are less sensitive than other stocks…
