The managerial pay-performance nexus is more accurately described by defining compensation as a discounted annuity occurring over the life of a contract. A unique NCAA football setting enables us to observe a coach's entire professional history, as well as all contract compensation components....

We find that the cultural distance between the CEO and a firm’s directors increases the sensitivity of CEO turnover and compensation to performance while enhancing shareholder value. This effect is concentrated in the cultural distance between the CEO and independent directors. More culturally...

Despite the widespread adoption of recommender systems by online investment platforms, empirical research into their impact on online investors’ behaviors is scarce. Using data from a global e-commerce platform, the authors of this study adopt a regression discontinuity design and causally...

We provide new evidence that the bankruptcy filing of a locally headquartered and publicly-listed manufacturing firm imposes externalities on the local governments. Compared to matched counties with similar economic trends, municipal bond yields for affected counties increase by 10 bps within a...

Corporate interest in cryptocurrencies is growing quickly, with Bitcoin and Ether emerging as the top-of-mind digital assets. This paper studies how U.S. public firms account for crypto assets using a hand-collected sample from 2013 to 2021. Our analyses yield three key findings. First, although...

Using a comprehensive sample of 2,585 bankruptcies from 1990 to 2019, we benchmark the performance of various machine learning models in predicting financial distress of publicly traded U.S. firms. We find that gradient boosted trees outperform other models in one-year-ahead forecasts. Variable...

With the rapid growth of e-commerce, financial products are being brought onto online platforms. However, due to the scarcity of data in this new product domain, online platforms face challenges in predicting users' purchase behavior. In this paper, we study whether we can "transfer'' knowledge...

This paper is the first systematic examination of the effects of data localization laws on cybersecurity. This paper focuses on the effects of “hard” data localization, where transfer of data is prohibited to other countries. Other “softer” versions of data localization also exist, such...

Migration patterns in the United States changed dramatically during the COVID-19 pandemic. We find that COVID-induced migration predicts municipal bond yield spreads, particularly for lower-rated bonds and areas experiencing larger than usual population outflows. Analyzing this effect across the...

Using a direct measure of equity cash flow duration, we find that firms with high cash flow duration are more likely to become an acquirer and use stock as the payment method. Both in the short and long run, stock markets react more unfavorably to acquisition announcements by these acquirers....