Working Papers

These papers are working drafts of research which often appear in final form in academic journals. The published versions may differ from the working versions provided here.

Shai Bernstein, Josh Lerner, Filippo Mezzanotti
July 18, 2017

Do private equity firms contribute to financial fragility during economic crises? We find that during the 2008 financial crisis, PE-backed companies increased investments relative to their peers, while also experiencing greater equity and debt inflows....

Shai Bernstein, Timothy James McQuade, Richard R. Townsend
July 7, 2017

Do household wealth shocks affect employee output? We examine this question through the lens of technological innovation, by comparing employees that worked at the same firm and lived in the same metropolitan area, but experienced...

Jung Ho Choi
July 2017

I evaluate the role of accrual accounting in improving firms’ production decisions and resource allocation across firms. I introduce both cash flow and accounting earnings as imperfect measures of performance into a general equilibrium model...

Matthew Corritore, Amir Goldberg, Sameer B. Srivastava
July 2017

This article deepens our understanding of how the culture of an organization can reflect its underlying capacity for execution and creative exploration and thereby foreshadow how it

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Anat R. Admati
June 26, 2017

Financialized corporate governance as commonly practiced causes significant inefficiencies and harm. Corporations and governments routinely fail to design and enforce rules that reduce the opacity of corporations, create effective commitments that prevent harm, and ensure...

John-Paul Ferguson, Rembrand Koning
June 18, 2017

Racial segregation between American workplaces is greater today than it was a generation ago. This increase has happened alongside the declines in within-establishment occupational segregation on which most prior research has focused. We examine more...

Baris Ata, Yinchuan Ding, Stefanos Zenios
June 7, 2017

The deceased-donor kidney transplant candidates in the US are ranked according to characteristics of both the donor and the recipient. We seek the ranking policy that achieves the best efficiency-equity tradeoff, taking into account patients’...

Charles M. C. Lee, Eric C. So, Charles C. Y. Wang
June 3, 2017

We argue, from an extensive literature review, that in the vast majority of research settings, biases in alternative expected-return proxies (ERPs) are irrelevant. Therefore, in most settings, the choice between alternative ERPs should be based...

Jonathan B. Berk, Jules H. van Binsbergen
June 1, 2017

We study a market for a skill that is in short supply and high demand, where the presence of charlatans (professionals who sell a service that they do not deliver on) is an equilibrium outcome....

Donnel A. Briley, Melanie Rudd, Jennifer Aaker
June 2017

Research shows that optimism can positively impact health, but when and why people feel optimistic when confronting health challenges is less clear. Findings from six studies show that the frames people adopt when thinking about...

Andres Elberg, Pedro M. Gardete, Rosario Macera, Carlos Noton
June 2017

This paper investigates the dynamic effects of price promotions in a retail setting through the use of a large-scale field experiment which involved varying the promotion depths of 170 products across 17 categories in 10...

C. Christine Fair, Patrick Kuhn, Neil Malhotra, Jacob Shapiro
May 31, 2017

How natural disasters affect politics in developing countries is an important question, given the fragility of fledgling democratic institutions in some of these countries as well as likely increased exposure to natural disasters over time...

Dmitry Orlov, Pavel Zryumov, Andrzej Skrzypacz
May 30, 2017

We study the design of macro-prudential stress tests and capital requirements. The tests provide information about correlation in banks portfolios. The regulator chooses contingent capital requirements that create a liquidity buffer in case of a...

Anat R. Admati, Peter M. DeMarzo, Martin F. Hellwig, Paul Pfleiderer
May 26, 2017

Forthcoming in Journal of Finance

Firms’ inability to commit to future funding choices has profound consequences for capital structure dynamics. With debt in place, shareholders pervasively resist leverage reductions no matter how much such reductions...

Alexander V. Hirsch, Ken Shotts
May 25, 2017

We analyze a model of policymaking in which only one actor, e.g., a bureaucratic agency or a well-funded interest group, has the capacity to develop high-quality policy proposals. By virtue of her skills, this actor...

Ian D. Gow, David F. Larcker, Brian Tayan
May 25, 2017

CEO succession at many companies occurs in a black box. Shareholders are not privy to boardroom discussions prior to the announcement of a CEO departure, and press releases announcing the change contain boilerplate language that...

Andrea L. Eisdeldt, Hanno Lustig, Lei Zhang
May 23, 2017

We develop a dynamic equilibrium model of complex asset markets with endogenous entry and exit in which the investment technology of investors with more expertise is subject to less asset-specific risk. The joint equilibrium distribution...

Elizabeth Blankespoor, Ed deHaan, Christina Zhu
May 10, 2017

Accepted at Review of Accounting Studies

In 2014, the Associated Press (AP) began using algorithms to write media articles about firms’ earnings announcements. These “robo-journalism” articles synthesize information from firms’ press releases, analyst...

Mary-Hunter McDonnell, Sarah A. Soule, Brayden King
May 7, 2017

Scholars agree that the tenor of a firms’ past interactions with contentious activists - which represent a strong signal of the openness of a firm’s opportunity structures - impacts the likelihood that the firm will...

Shai Bernstein, Emanuele Colonnelli, Xavier Giroud, Benjamin Iverson
May 5, 2017

Revise and Resubmit at Journal of Financial Economics

How do different bankruptcy approaches affect the local economy? Using U.S. Census microdata, we explore the spillover effects of reorganization and liquidation on geographically proximate firms. We...