In April 2012, Delta Air Lines (Delta) purchased a mothballed oil refinery. We use this case to illustrate when, how, and why vertical integration can hedge input price risk. First, we show that stockholders and creditors expected the move to create wealth. Consistent with their predictions,...

We study how investors in a conservative Muslim society react to announcements of bank loans depending on their compliance with Shari'a law. We hand-collect 173 announcements of bank loans granted to listed corporations in Saudi Arabia, assess their issuance and estimate the reaction of the...

We show how in Saudi Arabia, a country that relies heavily on crude oil exports, negative shocks in crude oil prices significantly impact households’ decisions to invest in education. Specifically, we find that the oil down cycle that started in the second half of 2014 compelled parents to...