We study how risk management through hedging impacts firms and competition among firms in the life insurance industry … hedging. Post reform impacted firms have lower risk and fewer negative income shocks. Product market competition is also … financial distress to decrease risk and become more competitive …

Using the collapse of the junk bond market in the early 1990s as an exogenous adverse shock to external capital, I …

interaction between firm-level heterogeneity and general equilibrium effects. Following a contractionary financial shock … cancels out the financial shock's direct effect in aggregation. If the firm-level heterogeneity is removed, the implied …

persistent negative productivity shock signals low future income and prompts firms to hold more cash in order to preserve …

Theory has recently shown that corporate policies should depend on firms' exposure to short- and long-lived cash flow … by theory, we find that the estimated parameters are strongly related to corporate liquidity and financing choices, that …