This study examines the causal impact of financial knowledge on stock pricing efficiency. We created an investor education website and conducted a field experiment by providing knowledge about the pricing implications of accounting accruals to investors in randomized stock groups via social...

We examine the relation between firms’ environmental, social, and governance (ESG) performance and aggregate stock market returns. Based on 38 ESG scores, we construct a market-level ESG index and find its strong positive predictive power on the market returns both in- and out-of-sample, and...

The Bank of Japan (BOJ) purchased large amounts of equity index ETFs as part of its Quantitative Easing (QE) policy. As the BOJ’s ETF includes a large proportion of priceweighted Nikkei 225 index ETFs, the BOJ’s holdings over-weight those shares relative to the market value weight. Thus, the...

We examine the role of borrowers’ digital footprints in debt collection. Using a sample of personal loans from a fintech lender in China, we find that the information acquired by the lender through borrowers’ digital footprints can increase the repayment likelihood on delinquent loans by...

We examine whether entrepreneurs’ freedom of movement can be a potential concern for creditors when extending trade credit. Utilizing controlling shareholders’ overseas residency status as a proxy for freedom of movement in Chinese firms, we show that their mobility negatively influences...

Different U.S. state governments have begun to adopt climate adaptation strategies and action plans to prepare for and combat the significant threat of climate change. The finalization of these strategies and action plans results in a state-level climate adaptation plan—the SCAP. We find that...

We investigate the effect of stock market liberalization on technological innovation. Using a sample of 20 economies that experience stock market liberalization, we find that these economies exhibit a higher level of innovation output after liberalization, and this effect is disproportionately...