Research Summary: Firm size has long been recognized as a source of competitive advantage. However, the disruptions arising from the knowledge-based global economy are decoupling the link between firm size and profitability. We demonstrate in this article, the structural shifts and evolving...

The existing replication policies at top finance journals are far weaker than the policies at top economics journals. This paper explores both the costs and benefits of having a stronger replication policy in the context of my failed 2010 initiative to develop a unified policy across all top...

The success of the endowment model of investing has long been the envy of both Wall Street and Main Street investors. Despite all of the press on how to invest like an endowment, the strategy can still be a bit of a mystery for industry outsiders. To shed some light on how endowment performance...

The agreement of the climate-negotiating parties in Paris in December 2015 (COP21) signaled the world's intent to decarbonize over the coming decades in order to keep the earth's average temperature increase below 2 degrees Celsius by mid-century. A timely and smooth transition to a low-carbon...

Stocks with high idiosyncratic volatility perform poorly relative to low idiosyncratic volatility stocks. We offer a novel explanation of this anomaly based on real options, which is consistent with earlier findings on idiosyncratic volatility (the positive contemporaneous relation between...

Two criteria for choosing between capital investment projects are net present value (NPV) and internal rate of return (IRR). Sometimes they provide inconsistent rankings. This inconsistency sparked a debate about which criterion is better. The debate has lasted more than 100 years.This paper...

Initial Gross Domestic Product (GDP) announcements are important economic signals that convey information on the state of the economy but contain substantial estimation error. We investigate how GDP estimation errors affect firms' real decisions and profitability. Consistent with theoretical...

This study examines the stock market reaction to announcements of information technology (IT) investments by Russian firms. While several similar studies have been published in the context of highly developed economies like the USA, very few such studies have been conducted in transition...

In this paper, we offer an innovative teaching tool for finance instruction, mind mapping, which visually depicts concepts and their interrelationships in a non-linear way. We review the considerable literature on the pedagogical benefits of graphics, describe how to design a mind map, recommend...

How many and which firms issue equity and bonds in domestic and international markets, how do these firms grow relative to non-issuing firms, and how does firm performance vary along the firm size distribution (FSD)? To evaluate these questions, we construct a new dataset by matching data on...