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...

We study the interaction between the financial markets and corporate finance by documenting that firms respond to decreased revelatory price efficiency in a precautionary manner. Exploiting the staggered implementation of the EDGAR system from 1993 to 1996 as exogenous shocks that discourage...