This study shows that firms regard stock price fragility - exposure to non-fundamental demand shocks stemming from the composition of equity ownership - as a salient corporate risk. We model ex-ante corporate responses to higher potential for future stock market misvaluation and then empirically...

We investigate whether suppliers adjust innovative supply-chain investment following stock market signals about customers' economic prospects. We show that suppliers increase R&D and investments in customer-related patents after positive market reactions to customers' new product announcements....

Framing stock and bond market characteristics as an endogenous and unified system, this paper investigates joint relationships between stock returns, stock trading volume, bond returns, and bond trading volume. Existing literature largely ignores reverse causality by considering an isolated...

Framing stock and bond market characteristics as an endogenous and unified system, this paper investigates joint relationships between stock returns, stock trading volume, bond returns, and bond trading volume. Existing literature largely ignores reverse causality by considering an isolated...

Combining information from labor historians and using techniques from finance we analyze the strikes that labor historians have agreed are pivotal in American history' during the period 1925-1937. Using information we collected on strike dates and historical financial market stock price data we...

We present an alternative expectation formation mechanism that helps rationalize well known asset pricing anomalies, such as the predictability of excess returns, excess volatility, and the equity-premium puzzle. As with rational expectations (RE), the expectation formation mechanism we consider...