We document a housing wealth effect on the stock liquidity of local firms. We first demonstrate that the heterogeneity of homeownership rates across geographical areas can explain variations in the impact that changes in house prices have on local stock liquidity. We then show, consistent with...

This paper investigates a hidden consequence of the share pledge business. We find that, relative to the recommendations issued by independent analysts, affiliated analysts under brokerage pressure to protect share pledge business exhibit an optimistic bias in their recommendations. Our results...

We investigate how a consumer protection law can exacerbate firms’ agency issues. Our analysis focuses on the staggered adoption of state-level data breach notification laws that require firms to disclose data breaches. We find that the enactment of these laws leads to a rise in stock price...