of the other variables. Our relations are useful for understanding the risk-return trade-off, as well as characterizing …

Swiss franc assets, together with the US stock market. The model is estimated constraining risk premia to depend on the time … variances cannot explain the observed time-variation of risk premia. Furthermore, the constraints imposed by the static CAPH are …

risk, explain changes in discount rate wedges over time …

We investigate how firms manage financial default risk (on debt) and operational default risk (on delivery obligations … predicts that firms' markup increases with financial default risk as they cut operational hedging costs. Empirical analysis … confirms this prediction and shows that the markup-credit risk relationship strengthens during adverse aggregate shocks …

availability and competitive labor markets. Climate risk management by firms mitigates the impact of heat shocks on aggregate …

Using textual analysis of earnings conference calls, we quantify firms' supply chain risk and its sources. Our proxy … for supply chain risk exhibits large cross-sectional and time-series variation that aligns with reasonable priors and is … unprecedently high during the Covid-19 pandemic. In addition, a firm exhibits high supply chain risk when its suppliers also do so …

innovation can give rise to a high risk premium on the aggregate stock market, return comovement and average return differences …-sectional differences in risk premia …