Do firms with liquid stocks hold more cash? If so, why? We show that liquidity has a positive effect on the level and value of cash holdings. Using a regression discontinuity design based on the Russell 1000/2000 index reconstitution, we also show that there is a causal link between liquidity...

This study examines the impact of corporate social responsibility (CSR) on the economic value of innovation. Using the stock market reaction to patent grants as a measure of the economic value of innovation, we find that a higher level of CSR leads to a higher value of innovation. In addition,...

This study investigates whether economic policy uncertainty (EPU) magnifies peer effects in corporate investment in China. Through use of the peer-firm-average idiosyncratic stock return to capture exogenous variation in peer firms' investment activities, we show that peer effects are stronger...