This paper revisits the firm-industry effect discourse. Using necessary Condition Analysis (NCA), we attempted to empirically address two debate related questions: Is a high level of industry-fixed effects necessary for a high level of firm performance? And, is a high level of firm-fixed effects...

Financial management is an integral part of overall management. It is concerned with theduties of the financial managers in the business firm. The term financial management has been defined by Solomon, “It is concerned with the efficient use of an important economic resource namely, capital...

This study analyzes price discrimination and household switching in the residential mortgage market. Using a unique proprietary micro dataset from Norway, we examine the difference between the loan rate paid by current clients when receiving a competing offer from another bank and the best rate...

We study redistributive effects of inflation across households with varying nominal wealth positions using a randomized information experiment on clients of a large bank. On average, individuals are well informed about current levels of inflation and are concerned about its impact on their...

We employ a time-varying risk price model that allows us to track the change in risk prices. We find that the output gap generates the time-varying market and momentum risk prices, but the exposures to the output gap have the opposite signs. In contrast, we do not observe that the output gap is...

Expert networks provide investors with in-depth discussions with subject matter experts. Expert call demand is higher for younger, technology-oriented firms and those with greater intangible assets, consistent with demand for information on hard-to-value firms. Expert calls are more (less)...

U.S. stocks' response to inflation surprises is, on average, robustly negative. Stocks' response to positive inflation surprises shows much more pronounced time-series variability than their response to negative inflation surprises. In our sample, stocks react significantly to positive inflation...

We empirically explore the role of investor disagreement and news for various types of stock jumps, where the dynamic of stock returns is captured by a contagion model. Our disagreement measure is derived from more than 173 million tweets from a social media investing platform, StockTwits, for...

This paper examines the relation between equity portfolio diversification choices of individual investors and stock returns. Using a six-year panel (1991-96) of individual investors, I find that stocks with less diversified individual investor clientele earn higher returns. A zero cost portfolio...

Using the geopolitical threats (GPT) index of Caldara and Iacoviello (2022), we show, in this paper, that the U.S. equity market and a few individual sectors produce significantly positive returns during high geopolitical threats, even with the presence of standard controls, while other major...