This paper examines how bilateral political tensions between the U.S. and other countries impact the innovation of US multinational corporations. The results suggest that strained political relations hinder collaboration among international inventors, reducing innovation outputs. Teams including...

Anthropogenic production and operating activities give off heat and emit thermal infrared radiation (TIR) as a fundamental result of the laws of thermodynamics. This study examines whether the strength of TIR measures the dynamics of economic activities and development. Using satellite data on...

Using a global dataset, we document that market-level climate vulnerability is positively associated with stock price crash risk of individual firms. We establish causality by using an instrumental variable analysis and difference-in-differences analysis. Furthermore, we show that an increase in...

We study the phenomenon of firms’ using short-term debt to fund long-term investments (SDLI). Using a sample of firms from 45 countries in the 1990–2015 period, we develop three novel proxies for firms’ SDLI. The reasonableness of our SDLI proxies has been confirmed by a survey and several...

Increasingly, firms are shifting their sales channels from local brick-and-mortar stores to online marketplaces. In this study, we investigate the motives behind this shift and whether online sales provide an informational advantage to investors over financial statements. First, we find that...

Using data from a lending platform that switched from a human-based to a machine learning-based system, we find that fintech may increase gender discrimination. The rationale is that machine learning algorithms allow the platform to better decipher differences in borrower preferences between...

DeVault, Sias, and Starks (2019) find a positive relation between institutional investors’ net buying of risky stocks and the contemporaneous change in market sentiment. They interpret this as evidence that institutional investors are sentiment traders, whose demand shocks drive prices from...