We analyze the impact of the bank CEO’s pay-risk sensitivity (‘vega’) on four loan contract terms, loan spreads, existence of collateral, and the number and strictness of covenants. Using a bank-level fixed effects model to control for time-invariant bank characteristics, we find that...

We investigate the effect of shareholder litigation risk on corporate culture. We measure corporate culture by a novel machine learning metric following Li et al. (2021). Exploiting exogenous declines in shareholder litigation rights and derivative lawsuit risk following the staggered adoption...

Underlying idiosyncratic and illiquidity risks are suppressed in infrequently reported indexes of house prices and rents. Idiosyncratic risks result from bid-ask spreads for prices and rents. Time series autocovariances generate a distribution of prices and rents. Capital gains and rent-price...