This paper provides evidence for a causal effect of equity prices on corporate investment and employment. We use fire … whose stocks are most underpriced have considerably lower investment and employment than industry peers not subject to any … fire sale discount. The causal effect of underpricing on investment is found to be largely concentrated on the most …

kurtosis. We find that the risk of momentum is highly variable over time and predictable. Managing this risk virtually … eliminates crashes and nearly doubles the Sharpe ratio of the momentum strategy. Risk-managed momentum is a much greater puzzle …

that limits their risk taking, unconstrained agents subject to a standard nonnegative wealth constraint, and arbitrageurs …

We test the hypothesis that investment banking networks affect stock prices and trading behavior. Consistent with the … notion that investment banks serve as information hubs for segmented groups of investors, the stock prices of firms that use …

participate in the market and allocate a larger proportion of their wealth to risky assets. Even when the income risk is high …

This paper estimates hedge fund and mutual fund exposure to newly proposed measures of macroeconomic risk that are … no significant relationship. After controlling for a large set of fund characteristics and risk factors, the positive … argue that macroeconomic risk is a powerful determinant of cross-sectional differences in hedge fund returns. …