We develop a capital structure model in which firms feature differential flexibility in adjusting output prices to shocks. Inflexible-price firms have lower profits and higher cash-flow volatility, leading in equilibrium to lower financial leverage, shorter debt duration, higher cost of debt,...

Using textual analysis and comparing cybersecurity-risk disclosures of firms that were hacked to others that were not, we propose a novel firm-level measure of cybersecurity risk for all US-listed firms. We then examine whether cybersecurity risk is priced in the cross-section of stock returns....

In our paper “Cybersecurity Risk” (Florackis, C., Louca, C., Michaely, R. and M. Weber. 2023. The Review of Financial Studies, Volume 36, Issue 1, Pages 351-407; https://doi.org/10.1093/rfs/hhac024) we construct a novel firm-level measure of cybersecurity risk using textual analysis of...

This study combines pre-COVID-19 household surveys with 2020 macro data to simulate changes in household economic welfare and poverty rates through job losses, labor income changes, and non-labor (remittance) income changes during 2020 in Brazil, Sri Lanka, the Philippines, South Africa, and...

Using repeated large-scale surveys of U.S. households, we study the cryptocurrency investment decisions and motives of households relative to other financial assets. Cryptocurrency holders tend to be young, white, male and more libertarian relative to non-crypto holders. They expect much higher...

Missing data for return predictors is a common problem in cross sectional asset pricing. Most papers do not explicitly discuss how they deal with missing data but conventional treatments focus on the subset of firms with no missing data for any predictor or impute the unconditional mean. Both...

Inflation expectations of households and firms are central determinants in all dynamic macro models. Yet, empirical evidence suggests these decision makers form expectations in a way that deviates from the assumptions in these models: on average, inflation expectations are biased upwards, are...