Firms face difficult decisions regarding investment in the protection of nonfinancial stakeholders. We find that a firm's financial health plays an important role in mitigating the spread of COVID-19 by studying nursing homes, whose residents have accounted for about 40% of all U.S. COVID-19...

Nonbank mortgage companies (NMCs) use high levels of short-term leverage, leading to concerns about their individual fragility and systemic risk. We find that NMCs also hold very risky assets, with revenue growth ranging from -30% to +100% at the 10th-90th percentile. Surprisingly, we also...