This paper provides novel evidence that similarity in employees' political attitudes plays a role in mergers and acquisitions. Using detailed data on individual campaign contributions to Democrats and Republicans, our estimates show that firms are considerably more likely to announce a merger,...

I study how fund families’ simultaneous debt and equity holdings affect risk shifting by portfolio firms. Families generate more income from debt in one-third of their dual holding positions; I argue their equity in those positions is captured. Firms with more captured dual holders exhibit...

Sustainability-linked loans (SLLs), in which loan contract terms are contingent on borrower ESG performance, have grown exponentially in recent years. We examine the economic incentives underlying SLL arrangements. We find that loan spreads are not lower for SLLs, and borrower ESG performance...