Using firm-level R&D and patent data for 88 countries, we find that country climate vulnerability negatively affects firms’ R&D investment and innovation performance. This effect operates through the decreased responsiveness of R&D investment to investment opportunities (i.e., investment...

We utilize one of the earliest and largest NFT collections to investigate the pricing and the risk-return profile of NFTs. In general, we find that NFTs outperform traditional financial assets. Yet, investing in NFTs usually comes along with extremely high risks. The average monthly returns on...

We examine whether rival CEOs’ overconfidence influences a focal firm’s research and development (R&D) expenditure. We propose a stylized model based on an R&D competition game with CEOs having a keeping-up-with-the-Joneses preference. Our model predicts that the overconfidence level of...

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....

We hypothesize that a surge in availability of information coupled with investors’ confirmation bias could aggravate retail investors’ behavioral biases due to their cherry-picking of information that only confirms their priors. We use the staggered EDGAR implementation to provide causal...

We examine whether Key Opinion Leaders (KOLs) on financial social media serve as an alternative form of information intermediary. Amongst approximately two million high-frequency intraday StockTwits posts by 158,000 users, we find that posts by KOLs convey price-related information during...

We hypothesize that when managers do not exercise their options, they signal valuable private information. Accordingly, we construct a proxy to capture managers’ private information from their in-the-money vested options unexercised (VOU) and find a positive relation with subsequent operating...

We find that aggregate insider trading does not predict market returns in recent years. In contrast, aggregate opportunistic insider trading that excludes routine insider trades positively predicts future market returns in both in-sample and outof-sample tests. A one-standard-deviation increase...