In this study, we examine the effect of social capital on stock price crash risk. We find that firms headquartered in U ….S. counties with higher levels of social capital exhibit lower levels of future stock price crash risk. This finding is … causal effect of social capital on stock price crash risk. Additionally, we find that the influence of social capital on …

In a tractable stochastic volatility model, we identify the price of the smile as the price of the unspanned risks … traded in SPX option markets. The price of the smile reflects two persistent volatility and skewness risks, which imply a … downward sloping term structure of low-frequency variance risk premia in normal times. In periods of distress, the term …

sector of Pakistan. For this purpose, seven bank-specific explanatory variables (capital adequacy, management efficiency …

We propose a model of bank monitoring and borrower financial misreporting. Using the staggered liberalization of the … improved bank monitoring reduces financial misreporting …

ruling party. We investigate how this form of local policy risk affects IPO underpricing. One standard-deviation increase in …

Using federal judge ideology as an exogenous measure of firms’ ex ante litigation risk, we document that the initial … underscore the salience of litigation risk in driving IPO underpricing …