We examine how waiving managers’ duty of loyalty affects the discharge of their duty of care in view of firms’ acquisition decisions. Exploiting the staggered introduction of Corporate Opportunity Waivers (COWs) that allow boards to waive their managers’ duty of loyalty, in a...

We highlight that the inalienable nature of human capital can crucially determine corporate payouts. Exploiting the staggered rejections of the inevitable disclosure doctrine (IDD) across 15 U.S. states as exogenous shocks that potentially increase the mobility of key talents, we find that...

Using a comprehensive firm-level and a unique confidential loan-level combined dataset, we examine the credit reallocation effects of minimum wage hikes in China. We show that in response to a wage rise shock, firms, especially those that are labor-intensive, are less likely to obtain a loan....

Hart and Moore (1994) theoretically analyze how inalienable human capital affects debt contracting. We examine, empirically, how firms address the increased threat of losing inalienable human capital by choosing between private and public debt: Following the staggered rejection of the inevitable...

We study the impact of celebrity endorsements, hiring celebrities as firm ambassadors, on stock mispricing. We find that celebrity endorsements can result in more severe stock mispricing for focal firms. Such an effect is stronger when endorsers are more popular. In addition, the occurrence of...

Using a global dataset, we document that market-level climate vulnerability is positively associated with stock price crash risk of individual firms. We establish causality by using an instrumental variable analysis and difference-in-differences analysis. Furthermore, we show that an increase in...