Climate change heightens the risk of climate anomalies. We find projected climate anomalies have a significantly negative impact on agricultural financing. When the projected probability of an abnormally high temperature (low temperature, low precipitation) for a month is in the top decile,...

We show that a bank’s knowledge of an industry developed through its loan portfolio facilitates the bank’s credit provision to other firms in that industry. This effect works beyond the bank’s private information about the focal firm and is consistent with a cross information production...

Using manually collected data associated with bribery in China, we find that firms receive higher credit ratings when their travel and entertainment expenses are abnormally high. Higher credit ratings help firms to expand their debt capacity, which incentivizes issuers to bribe rating firms for...

We examine how industry returns react to various oil shocks developed in Baumeister and Hamilton (2019) and find that oil supply shocks matter as much, if not more, as oil demand and economic activity shocks in driving industry returns. A long-short portfolio that buys (sells) industries...

Exploiting the Central Environmental Inspections (CEI) in China as a quasi-natural experiment, we find that public firms in polluting industries experience significant gain in both profitability and market valuation after the regulatory shock, relative to firms in nonpolluting industries. The...

We find that firms' market share grows significantly faster if they have credit default swaps (CDS) traded on their debt. We use multiple approaches including overlap weighting analysis to draw causal inference about the effect of CDS on market share. CDS-referenced firms achieve growth by...