Business connections between suppliers and customers can be enhanced by personal relationships between the executive suites. Personal relationships can lead to greater information sharing and bring about greater trust and long-term stability. We show that relative to the typical...

Employing a plausibly exogenous shock that increased the extent to which private information is revealed in debt markets – the implementation of the Trade Reporting and Compliance Engine (TRACE) - we document a change in long-run management earnings forecast policy. We find that managers...

Short-term debt can reduce potential agency conflicts between managers and shareholders by exposing managers to more frequent monitoring by the credit market. Using an international dataset, we examine whether internal monitoring can substitute for external monitoring through the use of...

We document that African-American executives, on average, earn zero abnormal profits frominsider trades, in contrast to Asian-American and Caucasian executives who earn significantlypositive abnormal profits. We also find that these differences cannot be attributed to differencesin industry,...

We examine the effect of relative performance contracts on a manager’s economic incentives to manipulate earnings. Using data on actual peer firms, we find that higher earnings manipulation in the set of peer firms leads to higher earnings manipulation in the target firm. If the peer firm also...

We investigate how a borrower’s adverse climate-related incidents affect bank loan contracting. Using a sample of 2,622 publicly traded US firms over the period 2000–2016, we construct event-based measures of corporate climate performances based on firm-level adverse climate incidents such...

We document value and momentum across thirteen well-known stock market anomalies. We find anomalies that have performed well in the past month continue to outperform those that have performed poorly by about 60bp per month. These results hold for both relative momentum and absolute momentum...

This paper examines changes in bank capital and capital regulations since the global financial crisis, in the Europe and Central Asia region. It shows that banks in Europe and Central Asia are better capitalized, as measured by regulatory capital ratios, than they were prior to the crisis....