Intangible capital has arguably become an important component of corporate value. However, it is still an open question whether uncertainty associated with investment in intangible capital is higher or lower than physical capital. We estimate the value of intangible capital in a dynamic...

In this paper we reviewed two findings pertinent for using asset market data to make inferences about the intangible capital stock. We presented evidence familiar from the empirical finance literature that returns are heterogeneous when firms are grouped according to their ratio of market equity...

Conventional wisdom suggests that family shareholders should exit their large, concentrated equity stakes in publicly-traded firms and seek benefits arising from diversification. To provide insights into families' puzzling investment decision, we consider a model with risk - and ambiguity -...

We characterize and measure a long-term risk-return trade-off for the valuation of cash flows exposed to fluctuations in macroeconomic growth. This trade-off features risk prices of cash flows that are realized far into the future but continue to be reflected in asset values. We apply this...

In the presence of business groups, the expropriation through related party transactions (RPTs) is common and costly to minority shareholders. At the same time, it is well recognized that RPTs can help firms overcome market shortcomings. Using the setting of India's RPT voting rule, I find that...

As the new energy vehicle (NEV) subsidy policy of the Chinese government will completely exit the market in 2020, qualified NEV production manufacturers need to decide how to produce NEVs with/without producing internal combustion engine vehicles (ICEVs). Besides, the consumer's willingness to...

We characterize and measure a long-run risk return tradeoff for the valuation of financial cash flows that are exposed to fluctuations in macroeconomic growth. This tradeoff features components of financial cash flows that are only realized far into the future but are still reflected in current...

This study shows that, to obtain a precise measure of the liquidity premium in the stock market, it is important to recognize the influence of information uncertainty on the pricing of liquidity. Information uncertainty, which is positively correlated with stock illiquidity but negatively priced...

A view receiving increased support is that the height of trade costs in prime export sectorshas a strong effect on current account balances: countries specializing in sectors that facerelatively high trade costs, such as services, tend to run current account deficits, andsimilarly, countries...

We examine voluntary disclosures made by issuers of initial coin offerings (ICOs) in their “white papers” and use them to rate the blockchain technology being developed by the ICO issuers. First, we find that most ICOs receive a low rating. In fact, over 80% of the ICOs do not need to use a...