We investigate the impact of bankruptcy codes on firms' capital-structure choices. We develop a theoretical model to identify how firm characteristics may interact with the bankruptcy code in determining optimal capital structures. A novel and sharp empirical implication emerges from this...

In this paper, we study how different categories of crucial COVID-19 information influence price dynamics in stock and option markets during the period from 01/21/20 to 01/31/21. We present a theoretical model in which the behavioral traders make perceptual errors based on the intensity of...

This paper investigates how precautionary trading behavior of fund managers induced by a higher junior fee component in their compensation structure affects prices of downgraded loans in the leveraged loans market. Using detailed portfolio data from Collateralized Loan Obligation (CLO) funds, we...

We study the effect of board gender diversity on executive and director equity-linked incentives. The provision of equity incentives to executives is costly for shareholders. We argue theoretically that the optimal compensation given to executives by a board with superior monitoring ability will...

This study examines the association between creative corporate culture and corporate tax avoidance. We construct a novel measure of creative corporate culture through the textual analysis of public firms’ 10-K reports. We find that firms with highly creative culture avoid taxes to a greater...