We investigate the capital structure implications of corporate environmental liabilities, which are captured using the amount of firms' toxic production-related waste. We document that firms with higher environmental liabilities maintain lower financial leverage ratios, suggesting that...

This paper examines how speculation in financial markets can affect real investments and asset prices with asymmetric adjustment costs. Investors with recursive preferences have heterogeneous beliefs about real productivity and some extraneous risk and trade them in financial markets....

We study sourcing decisions of price-setting and price-taking firms with two unreliable suppliers, where a price-setting firm sets the retail price after the supply uncertainty is resolved and a price-taking firm takes the retail price as given. We investigate the impacts of market conditions,...