We show that analysts who display more consistent forecast errors have a greater effect on stock prices than analysts who provide more accurate but less consistent forecasts. This result leads to three implications. First, consistent analysts are less likely to be demoted to a less prestigious...

We examine the effects of keiretsu structure on capital market timing. Keiretsu groups offer a hybrid structure between fully integrated conglomerates and stand alone firms. We find that past market conditions affect the capital structure of keiretsu firms more than they affect the capital...

We evidence that housing prices negatively affect local firms through a labor channel. Using a series of mandated flood disclosure laws as a quasi-natural shock to housing prices, we find that local labor markets become tighter when housing prices increase. This effect is stronger where renting...

Firms located in communities in which people are, on average, more trusting enjoy some benefits in terms of the power of CEO contracts. We present two pieces of empirical evidence to support this claim: (1) higher average trust in a county is associated with "flatter" executive contracts and (2)...

This paper provides evidence that analysts who have predicted earnings more accurately than the median analyst in the previous four quarters tend to be simultaneously less accurate and further from the consensus forecast in their subsequent earnings prediction. This phenomenon is economically...

Abstract: Financial decision making is an increasingly complex subject. New insights from academic research, new paradigms from society, and new tools from private actors affect the way financial decisions are made. To be exhaustive is beyond the reach of any handbook. This volume aims to offer...

When setting budgets, managers may place constraints on how resources can be used in an effort to mitigate opportunistic behavior by subordinates. These restrictions can affect the ability of the subordinate to succeed in the budgeted task, but may also have an unintended spillover effect on the...

We investigate the interest shown by rank-and-file employees in seeing their firm meeting Wall Street’s expectations. We find that those who currently work for firms that meet or marginally beat analysts’ forecasts experience greater job satisfaction, controlling for the underlying financial...

We posit that management forecasts that are predictable transformations of realized earnings without random errors are more informative than unbiased forecasts which manifest small but unpredictable errors, even if biased forecasts are less accurate. Consistent with this intuition we find that...

"This accessible Handbook provides an essential entry point for those with an interest in the increasingly complex subject of financial decision-making. It sheds light on new paradigms in society and the ways that new tools from private actors have affected financial decision-making. Covering a...