This paper measures the output and TFP costs of sovereign risk incorporating its impact on firm-level intangible investment. Combining Italian aggregate and firm-level data, we show that firms reduced their investment and reallocated resources away from intangible assets and towards tangible...

Recent years have seen a sustained decline in the labor share around the world. This paper studies this trend by focusing on the effect of corporate income taxes on firm-level labor shares. From 2010 to 2013, the Chinese central government cut the corporate income tax rate in 21 cities for...

Using individual-level data of antidepressant prescriptions filled and the local bias phenomenon of investors in the United States, we study the effects of stock declines on the psychological health of investors and find that a one standard deviation decrease in local stock returns increases...

The COVID-19 pandemic has disrupted global trade and production. It has affected firms' operations directly and indirectly through their production networks. To cope with the crisis, many firms have allowed their employees to work from home. This study examines whether firms more exposed to the...

We identify a sample of firms with directors employed by institutional investors and examine the effect of a direct channel of institutional monitoring. Using difference-in-differences tests, we find weak evidence that institutional directors have a positive effect on informational efficiency....