Publications

How should leaders construct and communicate their messages to most effectively motivate their employees? We offer an integrative framework to address the diverging and complementary nature of two established approaches to employee motivation:…

In this paper we study the problems of estimating heterogeneity in causal effects in experimental or observational studies and conducting inference about the magnitude of the differences in treatment effects across subsets of the population. In…

In social hierarchies, moral stigma spreads down more than up. Across four vignette studies, exposure to the immoral behaviors of higher (vs. lower) ranking group members led online participants to report greater moral suspicion toward…

This paper examines whether protest associated with the “long protest wave” of the 1960s and 1970s positively influenced private-sector union support. Past research has found no such influence. We use measures designed to more closely represent…

Two key features of the government bailout programs implemented in the 2008- 2009 financial crisis were: first, the general opposition of voters to these programs and second, the implementation of a variety of interventions, ranging from targeted…

We hypothesized that threats to people’s social (i.e., group) identity can trigger deviant attitudes and behaviors. A correlational study and five experiments showed that experiencing or recalling situations associated with the devaluation…

There are large racial disparities in school discipline in the United States, which, for Black students, not only contribute to school failure but also can lay a path toward incarceration. Although the disparities have been well documented, the…

We consider a class of nonlinear mappings FAN in RN indexed by symmetric random matrices with independent entries. Within spin glass theory, special cases of these mapping correspond to iterating the TAP equations and were studied by…

For-profit and nonprofit organizations exist for different reasons: for-profits to generate a return on investment for shareholders, and nonprofits to pursue charitable and social activities unrelated to commerce. The obligations of the boards of…

Using hand-collected data on divisional managers at conglomerates, we find that a change in industry surplus in one division generates large spillovers on managerial payoffs in other divisions of the same firm. These spillovers arise only within…

We provide a theory of the determination of exchange rates based on capital flows in imperfect financial markets. Capital flows drive exchange rates by altering the balance sheets of financiers that bear the risks resulting from international…

We study optimal disclosure via two competing communication channels; hard information whose value has been verified and soft disclosures such as forecasts, unaudited statements and press releases. We show that certain soft disclosures may…

We propose a new method of testing asset pricing models that relies on using quantities rather than simply prices or returns. We use the capital flows into and out of mutual funds to infer which risk model investors use. We derive a simple test…

We propose a new method of testing asset pricing models that relies on using quantities rather than simply prices or returns. We use the capital flows into and out of mutual funds to infer which risk model investors use. We derive a simple test…

Forthcoming in Review of Accounting Studies

This study examines the information content of quarterly earnings announcements. We first use a nonparametric approach to investigate whether quarterly earnings announcements are…

Systemic risk arises when shocks lead to states where a disruption in financial intermediation adversely affects the economy and feeds back into further disrupting financial intermediation. We present a macroeconomic model with a financial…

The largest commercial bank stocks, ranked by total size of the balance sheet, have significantly lower risk-adjusted returns than small- and medium-sized bank stocks, even though large banks are significantly more levered. We uncover a size…

This paper tests the proposition that politicians and their affiliated firms (i.e., firms operating in their province) temporarily suppress negative information in response to political incentives. We examine the stock price behavior of Chinese…

This paper discusses the phenomenon of “built to become:” an open-ended ongoing process for which there is no grand ex ante plan possible and which unfolds through a series of transformations in the course of the strategic evolution of…

In this paper we study stochastic dynamic games with many players; these are a fundamental model for a wide range of economic applications. The standard solution concept for such games is Markov perfect equilibrium (MPE), but it is well…