This study shows that changes in sentiment inequality, defined as the consumer sentiment difference between high- and low-income groups, can predict the future performance of high-end compared with low-end product firms. Strategies that combine the use of sentiment inequality changes with firms'...

This paper presents a new framework for analyzing automation, robotics, and hightech, which differs from the canonical model of technological progress by incorporating the higher education system. The main difference is that there is not just one type of skilled workers, but two types, and there...

This paper conducts an empirical analysis of the relationship between corporate social responsibility (CSR) and political beliefs in the United States. By analyzing the 2004 presidential election results of communities in which corporate headquarters are located, we establish a correlation...

This paper highlights a new driver of inequality, that may become increasingly prominent over the years: the inequality between skilled workers graduating from elite universities and those from standard institutions. This paper emphasizes that heterogeneity in higher education is a key factor in...

This paper highlights a new driver of inequality, that may become increasingly prominent over the years: the inequality between skilled workers graduating from elite universities and those from standard institutions. This paper emphasizes that heterogeneity in higher education is a key factor in...

During the last decade the Internet has become an increasingly important source for gathering company related information. We employ Wikipedia editing frequency as an instrument that captures the degree in which the population is engaged with the processing of company-related information. We...

We analyze the puzzling behavior of the volatility of individual stock returns over the past few decades. The literature has provided many different explanations to the trend in volatility and this paper tests the viability of the different explanations. Virtually all current theoretical...

We analyze the puzzling behavior of the volatility of individual stock returns over the past few decades. The literature has provided many different explanations to the trend in volatility and this paper tests the viability of the different explanations. Virtually all current theoretical...

We analyze the relative advantage of option grants compared to stock compensation when shareholders are diversified. Our analysis recognizes a conflict that is largely neglected in the corporate finance literature. Shareholders want to maximize their portfolio value while capital budgeting rules...