This study investigates (1) whether misreporting by corporate executives impacts unethical decision‐making by non‐peers in unrelated reporting tasks, and (2) whether observing various forms of punishment for corporate misreporting deters this spillover effect. Specifically, we examine the deterrent effects of two common forms of punishment (fines or imprisonment) and a novel form of punishment (public

Do real assets protect against inflation? Stocks’ core inflation betas are negative, while their energy betas are positive. Currencies, commodities, and real estate mostly hedge against energy inflation, but not core inflation. These hedging properties are reflected in the prices of inflation risks: only core inflation carries a negative risk premium, and its magnitude is consistent within and across

We first document that, despite potential legal issues, overlapping directors are surprisingly prevalent among direct competitors. Using panel data regressions and plausibly exogenous shocks, we find that competing firms in markets with dense overlapping-director networks experience innovation herding, lose product differentiation, and, ultimately, perform poorly. Novel text-based network propagation

I document a significant gender gap in entrepreneurs’ access to early-stage equity financing. Using unique administrative data on French startups, I show that this gap is particularly pronounced in male-dominated sectors. Controlling for a comprehensive set of entrepreneur and startup characteristics—including demographics, backgrounds, and motivations—accounts for 42% of the average gender gap. However

We show that the infrastructure of decentralized exchanges subjects liquidity providers (LPs) to a “tragedy of the commons.” Liquidity providers lack incentives to exit liquidity pools to prevent arbitrage losses, as these are collectively shared, while withdrawal costs are borne individually. Arbitrage rents primarily flow to validators as infrastructure fees, with the median arbitrageur transferring

We propose a new asset pricing model that generalizes the mean-variance framework by including probability weighting, specifically the overweighting of rare, high-impact events. Our model—the Π-CAPM—generates several new predictions: (i) skewness has a positive price effect, amplified by volatility; (ii) the price effect of volatility is negative for left-skewed assets but positive for right-skewed

This study examines the impact of climate change exposure on firm value for low- and middle-income economies by utilizing cross-country firm-level dataset. This study employs two novel firm-level climate change exposure variables to explore the impact of climate change exposure on firm value in both financial and physical dimensions of it. The results show that climate change exposure significantly

Based on panel data from EU countries from 2001 to 2023, this paper evaluates the impact of cross-border regulatory reform on ESG investment growth, focusing on the implementation of the 2014 Non-Financial Reporting Directive (NFRD). By constructing an ESG investment growth indicator system and employing a difference-in-differences model, the study finds that regulatory reform has significantly enhanced

This study examines the role of organization capital in enhancing firm value among Indian listed firms from 2002 to 2023. We investigate this relationship in the context of market competition and business group affiliation. Results indicate a significant positive impact of organization capital on firm value, particularly for firms facing high market competition and affiliated with business groups.

This study investigates the return-volatility relationship of the largest physical uranium investment trust, Sprott Physical Uranium Trust (SPUT), addressing a largely underexplored asset class. Analyses based on daily data yield mixed results. However, when accounting for the persistence of volatility using intraday data, a classical equity-like asymmetrical relationship emerges, consistent with SPUT’s

This study aims to detect rational speculative bubbles in the sub-sectors of the S&P 500 index by integrating a non-parametric duration dependence test with fractional integration models. A flexible P-splines hazard function, robust to censoring, ensures precise estimation and Bayesian confidence intervals. Analyzing weekly and monthly data from October 1989 to June 2023, the findings provide empirical

Amberger, Wilde, and Wu (2025, AWW) examine the impact of EU beneficial ownership transparency (BOT) regulation on cross-border investment. They find that BOT is associated with reductions in investments from non-EU financial havens into the EU and that BOT unintentionally discourages legitimate investments without deterring illicit actors. My discussion evaluates AWW’s evidence, positions the paper

Our study examines the predictive power of Management Discussion and Analysis (MD&A) sections in the context of bankruptcy prediction. Leveraging contextual sentence embeddings from a pre-trained Transformer model (BERT), we introduce a novel prediction model designed to identify MD&A sentences associated with bankruptcies. Our sentence-level model is competitive with various document-level approaches

This paper demonstrates the potential of (large) language models to transform accounting practice and research by automating information retrieval from unstructured sources. While information retrieval in accounting has hitherto been predominantly addressed through handcrafted, rule-based systems, we have devised an approach based entirely on machine learning methods from the field of natural language

The Question and Answer (Q&A) session between institutional investors and management, as a vital component of corporate site visits (CSVs), plays a crucial role in the efficiency and quality of information transmission. Thus, in this study, we focus on the methods in which investors ask questions and the response patterns of management in the CSV Q&A session to explore the impact of these factors on

This study investigates the investment distance between Venture Capital funds (VCs) and their investable ventures focusing on the relevance of intangible assets based on UK data. We find that investees with a higher level of intangible assets on their balance sheet receive VC finance from more proximate VC funds. However, investees with more patents, reflecting the economic value of intangibles, receive

We find that Mergers and Acquisitions (hereafter M&As) can cause severe distractions for audit teams of the acquirers. Distracted audit teams cause delays in the filings of annual financial reports by their other clients and are 4% more likely to lose those clients. Clients of distracted auditors exhibit lower audit quality, evidenced by higher chances of financial misstatements and shareholder class

This study investigates how equity mispricing drives listed enterprises’ non-traditional financial activities. We identify executive speculation and investor incentives as key catalysts, wherein overvalued stocks incentivize risk-seeking managerial practices and short-term profit alignment with shareholders. The effects are disproportionately pronounced for non-state-owned enterprises, companies grappling

This paper investigates how CEO overconfidence interacts with compensation structure to influence corporate payout policy. Using a panel of 713 S&P 1500 firms from 2010 to 2019, we find that overconfident CEOs with higher equity-based (i.e., convex) compensation are associated with significantly lower levels of both cash dividends and share repurchases. In contrast, inside debt compensation (non-convex)

This study examines the association between voluntarily stepping back from IFRS to national GAAP and the cost of debt among European unlisted firms. Using a dataset of 42,987 observations from seven European countries between 2012 and 2022, we find that companies reverting to national GAAP are associated with a lower cost of debt after stepping back. This finding remains consistent regardless of their

This study, utilizing a global dataset of 32,382 firm-year observations from 2004 to 2023, reveals a positive and statistically significant relationship between climate governance and corporate environmental decoupling. We find that climate governance decreases under-reporting (corporations disclose fewer details about their sustainability practices than they perform) and increases over-reporting (corporations

This study investigates the role of cryptocurrency whitepapers in coin performance. Analysing 1231 cryptocurrencies, 315 of which have whitepapers, reveals significantly higher average excess returns for coins accompanied by whitepapers, particularly in the long term, rather than immediately after being listed on CoinGecko.com. In addition, specific whitepaper characteristics such as scope, readability

This study applies a quantile Granger causality test to examine the causal nexus between geopolitical risks, climate risks, and global ESG equity and green bond index. Results reveal asymmetric, state-dependent effects. The findings highlight the importance of nonlinear risk assessment in sustainable finance and policy design.

We examine whether the local administration of sales taxes (as opposed to a more streamlined state administration) affects the real economy for businesses complying with the tax. We study this question in the Florida hotel industry, as counties in Florida can choose to locally administer the county‐level tourist tax or have the state administer the county‐level tax along with the state‐level tourist

This study explores the factors influencing firms’ cash holdings and their impact on shareholder returns. Firms are grouped into deciles based on Median Industry-Adjusted Cash Ratios (MACR). We examine the influence of market risk measures, operational and financial ratios, macroeconomic conditions, and key variables: business strategy, life cycle stage, and managerial ability. Our findings show that

Using a large international dataset, this study documents that the country-level adoption of mandatory ESG reporting requirement facilitates domestic firms’ cross-listing activities. Cross-sectional analyses reveal that this effect is more pronounced for opaque firms, those with a higher dependence on external financing, those with higher ex-ante agency costs, and for firms headquartered in home countries

Controversies, news about inappropriate corporate behaviour from an environmental, social, and governance (ESG) perspective, published in the media, put companies in a delicate situation and represent a reputational risk that can have a negative impact on firm value. In this paper, we analyse whether and under what conditions this type of negative news leads to business decisions aimed at ensuring

This paper investigates the impact of social trust on workplace safety. Using the establishment-level data compiled by Occupational Safety and Health Administration (OSHA), we find a negative relation between social trust and workplace injury rates. Our results are robust to removing the influence of regional factors, employing an entropy-balanced sample, and adopting various model specifications and

We introduce the Global Fear of Missing Out (FOMO) Index, a monthly sentiment measure built from Google Trends data, capturing a persistent psychological force driving global financial markets. The index exhibits high persistence and a robust inverse relationship. To contextualize the economic magnitude of our findings, we clarify that a 10% increase in the Global FOMO Index is associated with a 1

Most online marketplaces are peer-to-peer. Credit ones, however, are not and they have resurrected many features of traditional financial intermediaries. To understand why, we use online credit as a laboratory to investigate the value of financial intermediation. We develop a structural model of online debt crowdfunding and estimate it on a novel database. We find that abandoning the peer-to-peer paradigm

We investigate the interconnection between net buying pressure, proxied by the order imbalance, in derivatives, including futures and options, and spot markets. This study focuses on two main types of cryptocurrencies, Bitcoin and Ethereum, using the hourly data from January 2019 to December 2022. We find that the order imbalance in the spot or futures market improves the return and volatility predictive

With the development of technology, individual investors can communicate directly with the company, and the interactive content can be observed by other investors. We explore the influence of this direct communication on corporate financialization. The results show that individual investors' voices can significantly restrain corporate financialization, and reducing management shortsightedness are important

This study enhances volatility forecasting by integrating copula-based methods with a dynamic network log- ARCH model. The D-vine copula quantile regression and copula entropy methods, which capture nonlinear dependencies and select key predictors, are used to construct a high-dimensional financial network. The model incorporates time-lagged volatility and information from neighboring stocks, enabling

Climate change is increasingly shaping financial markets, particularly in developing economies with evolving institutional frameworks and disclosure practices. This study constructs four firm-level climate attention indices—Aggregate, Physical Risk, Transition Risk, and Opportunity—based on over 117,000 Chinese-language earnings calls and broker reports. Using a keyword discovery method enhanced by

This study examines the impact of bank involvement in corporate social responsibility (CSR) on corruption. Using a sample of banks from 40 countries, the results show that CSR initiatives significantly reduce corruption, with consistent findings across tests. Mechanism analysis reveals that CSR mitigates corruption by strengthening regulatory frameworks, improving stakeholder protection, diversifying

This study investigates the impact of Trump-related events, measured by the urgency around his mentions in central bank speeches, on volatility in the clean energy market. Using advanced textual analysis, we construct event-related variables and assess their significance through Extreme Bounds Analysis (EBA). Based on the EBA results, we identify Urgency and Commitment as the two key factors, selected

The widespread availability of digital financial statements across different platforms presents challenges related to potentially misdirecting visual cues and inconsistent terminology. This study employs a quasi-experimental design to analyze the influence of misdirecting visual cues and alternative terminology on attention during information search behavior, while also examining how accounting domain

We identify a new source for the declining role of small banks in the banking industry: Long-term changes in the banking sector are partially a consequence of changes in the industrial sector. Small banks are relatively more exposed to small business shocks, because small businesses compose a larger share of their customers. Lower real-side demand for small business financial services is responsible

The impact of tax benefits of debt on firms remains an open question. The 2017 U.S. tax reform limited the tax advantage of debt for all firms except for small businesses with average sales below $25 million. A regression discontinuity design based on the exception threshold shows that, as tax benefits of debt shrink, corporate debt declines significantly, while equity does not increase sufficiently

This study examines the influence of CSR textual attributes, particularly complexity and tone, on M&A outcomes for firms listed on the Shanghai and Shenzhen Stock Exchanges between 2010 and 2023. Using deep learning-based NLP techniques implemented via BERT to measure CSR textual factors and addressing sample selection bias through Heckman’s two-step models, the findings reveal that higher CSR complexity

This study explores the long-term impact of angel investment and venture capital on job creation, and examines the moderating effect of executives' financial backgrounds. The findings are as follows: both angel investment and venture capital have a significant positive impact on job creation, and executives' financial backgrounds can moderate the effect of entrepreneurial financing on job creation

This study examines the impact of family business succession (FBS) on Corporate Social Responsibility (CSR) disclosure within family firms, with a specific focus on changes in the linguistic characteristics of CSR reports during the succession process. We find that upon the succession of the second generation, family businesses may adopt a proactive yet deliberately ambiguous CSR disclosure strategy

The present study aims to evaluate the efficacy of existing models in detecting herding behaviors in cryptocurrency markets. The extant literature has employed various methods to assess the presence of herding behavior, mobilizing variables such as the cross-sectional dispersion of returns and the cross-sectional dispersion of assets' sensitivities to the market (beta herding). However, these detection

This study develops an interbank risk spillover framework using a dynamic Bayesian network and wavelet local multiple correlation to analyze the relationship between spillover risk, geopolitical risk, and economic policy uncertainty. We demonstrate that risk spillovers cluster regionally and shift in response to market conditions. During 2019–2021, spillover risk surged, reflecting the pandemic’s disruptions

Robo-advisors are becoming increasingly prevalent in financial markets, raising important questions about how investors perceive them. Using an experiment, we study whether and why investors generalize a single robo-advisor’s performance more than that of a human financial advisor. Drawing on social categorization theory, we predict and find that investors perceive robo-advisors as more homogeneous

This study aims to assess the role of banking’s organisational culture on the use of discretionary loan loss provisions (DLLPs), with a specific focus on understanding how cultural dimensions influence accounting practices. Regression models were estimated by leveraging a balanced panel data of 200 listed European banks for the period 2012–2023. The findings reveal that banks characterised by Create-dominant

This study is based on enterprise panel data from 2014 to 2023 and systematically explores the dynamic relationship between the lack of pricing power for data factors, financial mismatch, and corporate innovation. Through the construction of multidimensional econometric models, the research finds that the absence of pricing power for data factors suppresses corporate innovation; financial mismatch

This paper argues that a lesser known yet economically significant tax-deferral feature of ETFs’ security design is crucial to their success. By relying on the in-kind redemption exemption, authorized participants help ETFs avoid distributing capital gains and reduce their tax overhang, partly by deploying heartbeat trades. We estimate that the ETF tax efficiency has increased long-term investors’

This study investigates the impact of U.S. tariff announcements on stock liquidity in early 2025. Using firm-level data, liquidity deteriorates significantly following key announcements, particularly the April 2 reciprocal tariff plan. Spreads widen and market depth declines, indicating higher trading costs and thinner order books. These effects are consistent across model specifications and industries

We study market efficiency for high-frequency Brent Crude oil futures prices across intra-daily sampling frequencies ranging from one minute to two hours using a sample period from 2006 to 2021. The efficiency dynamics of Brent crude oil futures prices are scrutinized over time using rolling estimation windows. We also propose to study intra-daily market efficiency using a signature plot across sampling

Remote work was forced upon employees due to a worldwide crisis event. As some form of remote work continues, we draw upon psychology research which identifies four areas of concern: unemployment and job insecurity, employment disparities, work-family interface, and employee mental health issues. We adapt a conceptual framework to evaluate the negative effects caused by disruptive events and respective

We use the house transaction data to analyze why houses with energy-saving (green) features are sold for higher prices. We estimate house-specific economic values of green features and show that these values account for about 20-53% of the green price premium, depending on how economic values are measured. Individual homebuyers’ cultural origins and environmental attitudes also play a significant role

Since climate change and environmental challenges are global in nature, one would expect MNCs to exhibit greater alignment with global environmental sustainability than domestic firms, given their exposure to international norms and stakeholder concerns. A counterargument is that MNCs might instead behave opportunistically, engaging in regulatory arbitrage related to emissions reduction by leveraging

“Captive” spin-offs, in which the spun-off entity becomes a wholly-owned subsidiary of the parent, account for a vast majority of spin-off activities in Korea. Many practitioners have claimed that such spin-offs can be used by the firm’s controlling owner as a means of expropriating minority shareholders. We empirically show that, on average, a captive spin-off is followed by substantial decreases

Wholesale market makers pay for retail options orders that must be executed on exchanges. Payment for order flow (PFOF) wholesalers compete via price improvement in exchange auctions. To attract retail orders, wholesalers run more auctions when their recent price improvement has been lower. However, auction price improvement lowers market maker revenues. Wholesalers earn revenues to pay PFOF in nonauction

The paper investigates the intricate relationship between geopolitical uncertainty and equity market uncertainty in the semiconductor sector, focusing on the American and Asian markets from 1990 to 2024. We propose new measures of both market and geopolitical uncertainty focusing on the spreads between fast and slow components of market indices and geopolitical risk index. We focus on informational

This study examines how financial constraints influence the composition of financing used by small and medium-sized enterprises (SMEs) for fixed asset investment. Drawing on enterprise survey data from 42,929 SMEs across 121 countries between 2007 and 2024, we examine whether constrained enterprises rely more on internal or external sources to finance fixed asset investments. We find that SMEs reporting

We examine the impact of lagged guidance from prudential regulators on new accounting standards in the context of the Current Expected Credit Loss (CECL) standard. We refer to the period following CECL's 2016 pronouncement but prior to the 2018 guidance from prudential banking regulators on the standard as the lagged guidance (LG) period. We find that during the LG period, banks reduce loan amounts

This study investigates the relationship between firms' underlying carbon footprints and firms' carbon disclosure for developed economies, developing economies, and internationally as a whole. To provide new evidence, we use an international dataset of firm-level carbon emission and disclosure data from the recently available Carbon Disclosure Project database, as well as other complementary and supplementary