Inkee Jang and Kee-Youn Kang ♦ We develop a dynamic model of debt contracts with adverse selection. Entrepreneurs borrow investment goods from lenders to run businesses whose returns depend on entrepreneurial productivity and common productivity. Entrepreneurial productivity is the entrepreneur’s…
Allen H. Huang, Kai Wai Hui, and Yue Zheng ♦ Although federal judges are the ultimate arbiters of insider trading enforcement, the role of their political ideology in insider trading is unclear. Using the partisanship of judges’ nominating presidents to…
Joan Farre-Mensa, Roni Michaely, and Martin Schmalz ♦ We find that 43% of firms that make payouts also raise capital during the same year, resulting in 31% of aggregate payouts being externally financed, primarily with debt. Most financed payouts cannot…
Benjamin L. Collier, Lawrence S. Powell, Marc A. Ragin, and Xuesong You ♦ We examine the effects of a severe climate event on local firms. Our data include 8,218 business credit reports and a detailed survey of 273 businesses in…
Matteo Binfarè and Robert S. Harris ♦ We examine compensation for endowment Chief Investment Officers (CIOs) overseeing portfolios with significant allocations to alternatives. We find widespread use of bonuses and that large endowments with high alternative allocations hire CIOs with…
Isil Erel and Eduard Inozemtsev ♦ Nonbank lenders have been playing an increasing role in supplying debt, especially after the Great Recession. How important are the distortions in the greater regulation of banks that differentially limit risk-taking across alternative providers…
