Publications

Predicted stock issuers (PSIs) are firms with expected “high-investment and low-profit” (HILP) profiles that earn unusually low returns.  We carefully document important features of PSI firms to provide insights on the economic…

Currently, there is much debate about the role that non-investor stakeholder interests play in the governance of public companies. Critics argue that greater attention should be paid to the interest of stakeholders and that by investing in…

During decades of international climate policy negotiations, aiming to limit demand for fossil fuels, the stock of carbon dioxide in the atmosphere has increased considerably, and even the flow of emissions to the atmosphere continues to grow (…

The role played by unsustainable resource management in initiating international conflicts is well documented. The Syrian Civil War, commencing in March 2011, presents such a case. The prevailing opinion links the unrest with sequential droughts…

Seminal studies show that naïve lab participants accurately predict who wins real-world elections based solely on candidate photos. It is unclear what this implies for the health of democracy without knowing whether candidates who look more…

We seem to care about authenticity a lot these days. When it comes to our work, our leaders, our experiences, even our products, we increasingly value what’s real, genuine, or true.

But how do people respond to authenticity when they see…

Stereotypes are often reinforced by the words we choose to use. And when those stereotypes don’t align with markers of success at work and further inaccuracies about gender, race, national origin, age or other status characteristics. New research…

We study the classic sequential screening problem in the presence of ex-post participation constraints. We establish necessary and sufficient conditions that determine exhaustively when the optimal selling mechanism is either static or sequential…

We prove a fundamental result concerning the connection between discrete-time models of financial markets and the celebrated Black–Scholes–Merton continuous-time model in which “markets are complete.” Specifically, we prove that if (a) the…

Does decomposing cost of goods sold entail significant competitive costs? We examine this question using a relaxation of disaggregated manufacturing cost disclosure requirements in Korea. Our survey evidence indicates managers perceive these…

We study whether innovation box tax incentives, which reduce tax rates on innovation-related income, are associated with tax-motivated income shifting, investment, and employment in the countries that implement these regimes. Using a matched…

In collaboration with an online seller of home-improvement products, the authors conduct a large-scale randomized field experiment to study the effects of retargeted advertising, a form of internet advertising in which banner ads are displayed to…

This paper proposes a method for estimating consumer preferences among discrete choices, where the consumer chooses at most one product in a category, but selects from multiple categories in parallel. The consumer’s utility is additive in the…

When do protest organizations borrow issues or claims that are outside their traditional domains? Sociologists have examined the consequences of borrowing claims across movement boundaries, but not the antecedents of doing so. We argue that…

In complex supply chains, the benefits and costs of technological innovations do not always accrue equitably to all parties; thus, their adoption may critically depend on sourcing relationships and incentives. In a setting with uncertain and…

We assume that domestic (foreign) agents, when investing abroad, can only trade in the foreign (domestic) risk-free rates. In a preference-free environment, we derive the exchange rate volatility and risk premia in any such incomplete spanning…

The failure to find fundamentals that co-move with exchange rates or forecasting models with even mild predictive power – facts broadly referred to as “exchange rate disconnect” – stands among the most disappointing, but robust, facts in all of…

This paper studies the strategic interaction between a monopolistic seller of an information product and a set of potential buyers that compete in a downstream market. Our analysis illustrates that the nature and intensity of competition among…

Random forests are a powerful method for non-parametric regression, but are limited in their ability to fit smooth signals, and can show poor predictive performance in the presence of strong, smooth effects. Taking the perspective of random…

This case is a setting to discuss “loan to own” investment strategy that is often pursued by distressed investors. The aftermath of the 2007 financial crisis left many companies with poor liquidity and limited ability to obtain credit. One of…