We study whether and how publicizing internal information affects the value of financial markets to the real economy. By publicizing corporate filings, the SEC's EDGAR web platform reduces the cost of acquiring internal information for outsiders and so makes it relatively less attractive to...

The SEC regulates and standardizes information production in financial markets through financial reporting standards. With a novel dataset exploiting institutional features of the standard setting process. On average, standards increase aggregate market value by 0.93%, although discord among...

Lending relationships are prevalent in credit markets and are a potentially important driver of bank value, but little is known about the quantitative significance of this source of intangible capital. To estimate the value of these relationships, we develop a model of the lender’s decision to...

We propose and test a new channel through which fiscal policy changes affect the supply of intermediated credit and the real economy. Lenders that have greater exposure to firms expected to repatriate a significant amount of foreign income as a result of a 2004-2005 U.S. tax holiday subsequently...

Financial covenants transfer control rights to lenders when borrowers’ metrics breach pre-set thresholds. Contingent control rights allow lenders to extract monetary concessions (e.g., fees and renegotiation) and behavioral concessions (e.g., CEO turnover and reduced investment, R&D, and...

We exploit the SEC's staggered introduction of the EDGAR platform, which reduced the cost of acquiring historical financial reports, to study whether context affects news diffusion across stocks. We find that information transfer from a peer stock's earnings announcement increases by 70-100%...

We derive testable implications of Kyle and Obizhaeva's (2016) notion of "bet invariance'' for the cross-section of trade-time volatilities. We jointly develop theoretical foundations of "no speculative arbitrage'' whose implications incorporate those of bet invariance. Our proposed test...

Amihud's (2002) stock (il)liquidity measure averages daily ratios of absolute close-to-close return to dollar volume, including overnight returns, while trading volumes come from regular hours. Our modified measure addresses this mismatch by using open-to-close returns. It is more strongly...

We investigate two similar, but distinct benchmarks in financial reporting, that expenses match the revenues they generate, and that revenues and expenses produce earnings that are value relevant. To investigate how well these may be achieved in practice, we study a managerial choice subject to...