U.S. common stocks are simultaneously traded on multiple trading centers. We study quotes and trades with millisecond timestamps during the flash crash of May 6, 2010 and document new findings about order dynamics when the fragmented market is under stress. First, relative to May 5, 2010, the...

The carbon premium refers to the excess return associated with the carbon-brown firms and is the focus of several recent influential studies. After accounting for the data release lag and with value weighting, less carbon-intensive firms earn higher returns in the U.S., while there is no excess...

Expert networks provide investors with in-depth discussions with subject matter experts. Expert call demand is higher for younger, technology-oriented firms and those with greater intangible assets, consistent with demand for information on hard-to-value firms. Expert calls are more (less)...

This paper establishes a causal link between the dollar exchange rate and international trade flows, employing a new instrument for the U.S. dollar that is based on domestic U.S. housing activity. In line with the dominant currency paradigm (Gopinath et al. (2020)), import prices and quantities...

Companies face significant carbon-transition risk as the global economy works to combat climate change. This paper studies the market-based premium associated with the carbon-transition risk globally and finds that firms with more carbon-intense business models earn higher returns in recent...

Carbon-intensive firms have been underperforming in the U.S. despite their higher carbon transition risk. The brown-minus-green return spread, or carbon return, is zero on average globally but varies significantly across countries with unexpected cash flow shocks and climate taste shifts. The...

The carbon premium refers to the excess return associated with brown firms and is the focus of several recent influential studies. This paper finds negative excess return associated with carbon intensities but no excess return associated with total carbon emissions and emission growth in the...

Companies face significant carbon-transition risk as the global economy works to combat climate change. This paper studies the market-based premium associated with the carbon-transition risk globally and finds that firms with more carbon-intense business models earn higher returns in recent...