This study explores the relationship between changes in managerial risk-taking incentives and adjustments of firms' cost structures, particularly the operating leverage (fixed-to-variable cost ratio). We find managers reduce operating leverage by substituting fixed costs with variable costs,...

We examine the impact of social investing on charitable donations using a unique data set consisting of investment behaviors and donation transactions for over 10,000 customers of an investment app platform. We find that investors switching to a recently introduced social fund reduced their...