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 …

accumulate wealth before entry is critical for entrepreneurship. Flexible exit option is important for risk management purposes …. Investment increases and the private marginal value of liquidity decreases as w decreases and exit becomes more likely, contrary … to predictions of standard financial constraint models. We show that the idiosyncratic risk premium is quantitatively …