This study examines whether the flow volatility experienced by institutional investors affects firms' financing costs. Using Greenwood and Thesmar's (2011) stock price fragility, a proxy for firm exposure to its institutional investors' flow volatility, we find that firms with high stock price...

This paper provides direct evidence that managerial style is a key determinant of the firm's cost of capital, in the context of private debt contracting. Applying the novel empirical method by Abowd, Karmarz, and Margolis (1999) to a large sample that tracks job movement of top managers, we find...

We investigate the impact of going-concern opinions on price and non-price terms of bank loans. We argue that the existence of going-concern opinions increases both the default risk ex post and the information risk ex ante. Therefore, upon the issuance of these opinions, banks impose more...