We explore how information exposure, specifically information transmission within organizations, facilitates companies’ roles as corporate citizens. We study whether US firms’ business networks with China and Italy become their information advantage, and examine whether firms use relevant...

We investigate how improvements in organizations’ internal communication technology affect their voluntary disclosure, a form of external communication. By developing a model with a headquarters manager and several divisional managers, we formalize two competing economic forces—information...

One of the important limitations of the SRISK measure of systemic risk, proposed by Brownlees and Engle and Acharya, Engle and Richardson, is its reliance on stock market data without much validation against the institutions' fundamentals based on its financial statements. We propose a financial...

The Securities and Exchange Commission (SEC) is considering the pros and cons of moving to semi-annual reporting from quarterly reporting at least for certain segments of the market. However, documenting causal evidence on the consequences of mandatory quarterly reporting has been difficult, due...

We obtain survey responses from 168 North American CFOs and interview 16 of them to understand (i) how foreign currency exposure is measured and reported inside and outside the firm; (ii) how goal setting, performance evaluation and compensation of managers reflect exchange rate impacts, (iii)...

About 40% of the S&P 500 firms reported negative tangible equity (NTE) at the end of 2019, a significant increase from the approximately 10% level seen two decades ago. We find that debt-fueled NTE firms are larger and more likely to be associated with real estate assets, cumulated losses, less...

Investment funds that claim to focus on socially responsible stocks have proliferated in recent times. In this paper, we verify whether ESG mutual funds actually invest in firms that have stakeholder-friendly track records. Using a comprehensive sample of self-labelled ESG mutual funds in the US...

An influential emerging literature, led by Bolton and Kacperczyk (2021a), documents strong correlations between unscaled raw emissions and both stock returns and operating performance. We re-examine that data, using a sample of 2,729 U.S. firms from 2005-2019, and conclude that the associations...

Measuring various ways of seeking political influence and potential monetary return from such an endeavor is difficult. To address that challenge, we collect data on four mechanisms of acquiring political influence: lobbying spending, PAC contributions, lobbying through trade associations, and...