We hypothesize that greater economic policy uncertainty (EPU) leads to increases in unhealthy behaviors by lowering individuals' impulse control. Based on 6.1 million interviews over 22 years, our analysis reveals a positive relation between EPU and the propensity to make poor lifestyle choices...

We study the stock market reactions to the Tax Cuts and Jobs Act (TCJA), the most significant structural U.S. tax reform in over 30 years. In line with the stated intent of TCJA proponents, we find that the Act benefited highly taxed firms. However, the Act hindered firms with international...

Theoretically, dual-class ownership can promote innovation by increasing managerial flexibility and tolerance to failure. Yet, it can also inhibit it by promoting managerial entrenchment and misbehavior. Using hand-collected firm-level international data, we document an overall negative impact...

We document a strong negative impact of dual-class ownership structure on corporate innovation. The potential mechanism driving this result is the managerial consumption of private benefits of control as measured by the voting premium attached to the superior voting shares. We also find that the...

Microstructure noise in security prices biases the results of empirical asset pricing specifications, particularly when security-level explanatory variables are cross-sectionally correlated with the amount of noise. We focus on tests of whether measures of illiquidity, which are likely to be...

We survey empirical studies on the development and effects of increased computerization across equity, foreign exchange, derivatives, and fixed-income markets. While the changes in the trading process due to computerization in less liquid markets such as the corporate bond market have been...

This paper uses worldwide survey evidence to study the effect of derivative accounting standards on firms? risk management activities. More than 40% of the companies indicate that their risk management policies have been affected by the new standards. Their ability to hedge from an economic...