This Article reports results of an empirical study that suggests that the current economic crisis has changed managerial behavior in the US in a way that may impede economic recovery. The study finds a strong, statistically significant and economically meaningful, positive correlation between...

Since its first occurance in January 2020 COVID-19 has spread globally. In order to contrain the COVID 19, China has adopted a zero-covid policy and consequently contributed to local economic crises in the form of slowed industry growth. Consequentily in the first Quarter of 2020, this crisis...

Using a news-based index of aggregate policy uncertainty in the US economy, we document a strong negative relation between policy uncertainty and corporate risk-taking. We show that high levels of policy uncertainty are associated with significantly lower future stock return volatility at the...

Using a large sample of U.S. stocks covering more than three decades, we empirically test common criticisms of and rationales for stock repurchases. Repurchases account for a tiny fraction of the trading volume in a typical stock, making their price impact too small to facilitate short term...

Does who makes government policy matter to CEOs? Using data on the birthplace of US CEOs, I show that CEOs who were born in blue (Democrat) states display overconfidence when there is a Democratic president, whereas CEOs who were born in red (Republican) states display overconfidence when there...

Based on the evidence after the outbreak of SARS in 2003, which is caused by the same family of viruses as COVID-19, we show that due to the “probability weighting” phenomenon, i.e., decision makers tend to overweight the probability of extreme tail events, the epidemic experience induces...

This article examines the Proper Purpose Rule and the Exercise of Directors' Power in the recent JKX case as decided by the UK Supreme court. The decision of the JKX case now represents the leading Common law authority on the interpretation and application of the Proper Purpose Rule (the Rule or...

This paper investigates the effect of superstar CEOs on their competitors. Exploiting shocks to CEO status due to prestigious media awards, we document a significant positive stock market performance of competitors of superstar CEOs subsequent to the award. The effect is more pronounced for...

The aim of this paper is to explore the determinants of firm investment decision under the manager’s psychological characteristic. Previous research investigating the relationship between overconfidence and financial decisions has studied investment, financing decisions and firm values....