In summer 2007, the Securities and Exchange Commission (SEC) published an online tool with information on firms doing business in State Sponsor of Terrorism countries. We take sides with those arguing that for moral reasons, investors will have traded on the information provided in the tool by...

Different industries exhibit significantly different leverage. An extreme example are REITs. Their leverage ratio is twice as high as that of non-real estate firms in the U.S. We theoretically and empirically analyse why we observe a leverage ratio difference of 25.5 percentage points between...

We present and expand existing theories about why individuals may assess positive outcomes differently from negative outcomes in intertemporal choices. All of our theories – based on utility or cost considerations – predict a conventional magnitude effect for positive outcomes, i.e., a...