Publications

We study the inefficiencies stemming from a firm’s operating flexibility under debt. We find that flexibility in replenishing or liquidating inventory, by providing risk-shifting incentives, could lead to borrowing costs that erase more than one-…

We show that bond factors, which predict future U.S. economic activity at business cycle horizons, are priced in the cross-section of U.S. stock returns. High book-to-market stocks have larger exposures to these bond factors than low book-to-…

Although the aggregate capital share for U.S. firms has increased, the firm-level capital share has decreased on average. The divergence is due to the largest firms. While these mega-firms now produce a larger output share, their labor…

We measure the persuasive effects of slanted news and tastes for like-minded news, exploiting cable channel positions as exogenous shifters of cable news viewership. Channel positions do not correlate with demographics that predict viewership and…

A core claim of sociological theory is that modern institutions fall short of their meritocratic ideals, whereby rewards should be allocated based on achievement-related criteria. Instead, high-status actors often experience a “status advantage…

Understanding CEO compensation plans is a continuing challenge for directors and investors. The disclosure of these plans is dictated by SEC rules that rely heavily on the “fair value” of awards at the time they are granted. The problem with…

Based on a large sample of publicly listed and non-listed US commercial banks from 1996 to 2011, we find robust evidence consistent with banks using realized available for sale (AFS) securities gains and losses to smooth earnings and increase low…

Every summer and fall, freshly minted MBAs and MBA summer interns take new positions at companies. We analyze whether their choices have any predictive power on the success of those companies. We show that MBAs tend to join companies that have…

This paper examines whether increases in bank competition reduce discriminatory practices in mortgage lending. Lenders are significantly less likely to approve Black applicants’ loan applications despite facing similar credit risk. However,…

This Research Spotlight provides a summary of the academic literature on the impact of equity ownership on firm performance and agency problems:

• The relation between equity ownership and performance
• The relation between…

We consider a project supply chain where a manufacturer carries out a sequence of tasks, and each task requires certain key materials from a supplier. Since a fixed-price contract cannot attain channel coordination, we focus on time-based…

Voters in U.S. elections receive markedly different representation depending on which candidate they elect, and because of incumbent advantages, the effects of this choice persist for many years. What are the long-term consequences of these two…

We show that financial knowledge is a key determinant of wealth inequality in a stochastic life cycle model with endogenous financial knowledge accumulation, where financial knowledge enables individuals to better allocate lifetime resources in a…

No abstract available

A basic tenet of microeconomics is that for a competitive industry in equilibrium the market price of a product will be equal to its marginal cost. This paper develops a model framework and a corresponding empirical inference procedure for…

Size discovery is the use of trade mechanisms by which large quantities of an asset can be exchanged at a price that does not respond to price pressure. Primary examples of size discovery include “workup” in Treasury markets, “matching sessions”…

The International Integrated Reporting Council’s Framework identifies two goals for integrated reporting: improved information for outside providers of financial capital and better internal decision making. We extend prior research that finds a…

Past research (along with our experience) suggests that a firm’s supply chain (i.e., value chain) plays an integral role in its ability to not only reduce cost via process innovation, but also in its ability to develop new products and services.…

Existing models of ambivalence suggest that as the number of conflicting reactions (e.g., attitude components) increases, so too does the experience of ambivalence. Interestingly, though, these models overwhelmingly assume that this relationship…

This research explores how the experience of a jilt — the anticipation and subsequent inaccessibility of a highly desirable, aspirant option — influences preference for incumbent and non-incumbent options. We conceptualize jilting as a multi-…