We propose a unified framework to study liquidity provision by debt-issuing versus equity-issuing financial intermediaries. We show that both types of intermediaries provide liquidity by insuring against idiosyncratic liquidity risks as in Diamond and Dybvig (1983) but with distinct frictions....

I document that aggregate stock market returns correlate negatively with past returns in the first half of the earnings seasons, and positively in the second half. While these two arms of correlation are individually strong, they cancel with each other, averaging to a weak unconditional...

We find that common ownership leads VCs to stifle competition among startups, but only in limited circumstances. Our evidence is from pharmaceutical startups, where common ownership is widespread. We examine how a startup responds after seeing a competitor make progress on a related drug...

We show that municipal bond markets began pricing sea level rise (SLR) exposure at the end of 2011, coinciding with upward revisions of SLR projections. The effect is present across maturities and is concentrated on the East and Gulf coasts, where storm risk is greatest. We apply a structural...

Empirically, VC-backed startups have higher early growth rates and patenting levels than non-VC-backed ones. Venture capitalists increase a startup's likelihood of reaching the right tails of the firm size and innovation distributions. Furthermore, outcomes are better for startups matched with...

I exploit unsupervised machine learning and natural language processing techniques to elicit the risk factors that firms themselves identify in their annual reports. I quantify the firms' exposure to each identified risk and construct factor mimicking portfolios that proxy for each...

Debtor rights vis-a-vis creditor during bankruptcy can evolve over time due to changes in the nature of the prevailing bankruptcy law and its practice. I empirically study such a time-series trend in debtor rights using comprehensive sample of U.S. firms. To this end, I develop a dynamic model...

We show novel empirical evidence on the significance of output volatility (vol) shocks for both currency and international quantity dynamics. Focusing on G-17 countries, we document that: (1) consumption and output vols are imperfectly correlated within countries; (2) across countries,...

Estimates of mispricing, such as deviations from no-arbitrage relations, strongly comove across five financial markets. One common component---the arbitrage gap---explains the majority of variability in mispricing estimates for futures, Treasury securities, foreign exchange, and options....

We estimate risk-free interest rates unaffected by convenience yields on safe assets. We infer them from risky asset prices without relying on any specific model of risk. We obtain a term structure of convenience yields with maturities up to 2.5 years at a minutely frequency. The convenience...