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.

Arthur Kortwewg, Michael Schwert, Ilya A. Strebulaev
June 21, 2018

This paper shows that the frequency of capital structure adjustment varies significantly across firms. The most active 25% of firms account for 51% of leverage adjustments, while the least active 50% of firms account for...

Shai Bernstein, Emanuele Colonnelli, Davide Malacrino, Timothy James McQuade
June 19, 2018

New firm formation is a critical driver of job creation, and an important contributor to the responsiveness of the economy to aggregate shocks. In this paper we examine the characteristics of the individuals who become...

Kun Kuang, Ruoxuan Xiong, Peng Cui, Susan Athey, Bo Li
June 16, 2018

In many important machine learning applications, the training distribution used to learn a probabilistic classifier differs from the testing distribution on which the classifier will be used to make predictions. Traditional methods correct the distribution...

John Munoz, Susan Olzak, Sarah A. Soule
June 14, 2018

A major goal of the environmental movement is to conserve or improve the natural environment, but evidence showing that environmental mobilization produces positive environmental outcomes is mixed. This paper addresses a fundamental question about the...

Heitzman Shane, Rebecca Lester
June 12, 2018

We examine the relation between net operating loss (NOL) carryforwards and external financing and liquidity decisions using hand-collected data that more precisely measure the value of future tax loss benefits. NOL carryforwards drive variation in...

Rebecca Diamond, Michael J. Dickstein, Timothy James McQuade, Petra Persson
June 4, 2018

The Affordable Care Act (ACA) established health insurance marketplaces where consumers can buy individual coverage. Leveraging novel credit card and bank account micro-data, we identify new enrollees in the California marketplace and measure their health...

Joann F. de Zegher, Dan A. Iancu, Erica Plambeck
June 2018

Millions of poor smallholder farmers produce global commodities, often through illegal deforestation. Multinational commodity buyers have committed to halt illegal deforestation and improve farmers’ livelihoods in their supply chains. We propose a profitable way to...

James Copland, David F. Larcker, Brian Tayan
May 30, 2018

Proxy advisory firms have significant influence over the voting decisions of institutional investors and the governance choices of publicly traded companies. However, it is not clear that the recommendations of these firms are correct and...

Aiqing Ling, Nathalie George, Baba Shiv, Hilke Plassmann
May 25, 2018

Much research in consumer psychology has investigated how affective reactions unrelated to a decision at hand (i.e., incidental affect) influence consumers’ preconsumption preferences. Most of this research has approximated the incidental affect through its valence...

Saumitra Jha, Moses Shayo
May 25, 2018

Can participation in financial markets lead individuals to re-evaluate the costs of conflict, change their political attitudes and even their votes? Prior to the 2015 Israeli elections, we randomly assigned Palestinian and Israeli financial assets...

Kostas Bimpikis, Yiangos Papanastasiou
May 22, 2018

Crowd-sourced content in the form of online product reviews or recommendations is an integral feature of most Internet-based service platforms and marketplaces, including Yelp, TripAdvisor, Netflix, and Amazon. Customers may find such information useful when...

Marco Giacoletti, Kristoffer T. Laursen, Kenneth J. Singleton
May 20, 2018

We study the evolution of risk premiums on US Treasury bonds from the perspective of a real-time Bayesian learner RA who updates her beliefs using a dynamic term structure model. Learning about the historical dynamics...

Stephan Seiler, Tomomichi Amano, Andrew Rhodes
May 16, 2018

Many online markets are characterized by sellers that stock large numbers of products and sell each product infrequently. At the same time, consumer browsing information is typically tracked by online retailers and is much more...

Darrell Duffie, Samuel Antill
May 10, 2018

We compute optimal mechanism designs for each of a sequence of size-discovery sessions, at which traders submit reports of their excess inventories of an asset to a session operator, which allocates transfers of cash and...

Katherine Casey, Rachel Glennerster, Kelly Bidwell
May 9, 2018

Candidate debates have a rich history and remain integral to contemporary campaign strategy. There is, however, no evidence that they affect the behavior of voters or elected politicians. The scarcity of political information in the...

Richard Lu, Jennifer A. Chatman, Amir Goldberg, Sameer B. Srivastava
May 3, 2018

From the schoolyard to the boardroom, the pressures of cultural assimilation pervade all walks of social life. Why are some people more successful than others at cultural adjustment? Research on organizational culture has mostly focused...

David F. Larcker, Brian Tayan
May 1, 2018

The hallmark of good corporate governance is an independent board of directors to oversee management. However, it is not clear that independent directors receive the information they need to make fully informed decisions on all...

Dana Foarta, Takuo Sugaya
April 26, 2018

We study the contracting problem of a principal who chooses between motivating an agent to exert effort or taking her outside option. The agent is privately informed about his ability, where a higher-ability agent faces...

David Broockman, Evan J. Soltas
April 23, 2018

We exploit a natural experiment to identify taste-based discrimination against racial and ethnic minorities and women in elections. In Illinois Republican presidential primaries, voters vote for delegates bound to particular presidential candidates. Delegates’ names convey...

Mary E. Barth, Greg Clinch, Paul Ma
April 22, 2018

We address whether mandatory forecasts of earnings announcement dates are informative and what are the informational tradeoffs between mandatory and voluntary forecasts. We find China mandatory forecasts predict actual earnings announcement dates and yet-to-be-announced firm...