We examine how the sudden drop in public information search capability caused by Google’s withdrawal from China affects Chinese analysts’ earnings forecasts. We observe, after Google’s withdrawal, a decline in analysts’ forecast accuracy for firms with foreign trade relative to those...

Using the SEC’s 2016 Tick Size Pilot Program (TSPP) as a natural experiment, we investigate the effects of investors’ information acquisition on equity versus debt financing. We find a significant increase in firms’ preference for equity over debt issuance after the TSPP’s...

The 2016 Tick Size Pilot Program is an exogenous shock that incentivized fundamental investors to become more informed by acquiring fundamental firm information. Building on these studies, we examine the effect of the pilot program on earnings guidance. We find that the treatment firms...

We examine how options trading affects voluntary corporate disclosure to explore how managers strategically disclose in light of potential managerial learning from the options market. We find that options trading reduces the likelihood and frequency of management earnings forecasts, suggesting...

An emerging stream of research documents that experience of traumatic events early in a CEO's life influences the firm's investment and financing choices. We extend this research by examining the impact of CEO early-life natural disaster experience on stock price crash risk. Using a longitudinal...

We examine the impact of managerial mood on corporate tax avoidance—a ubiquitous corporate decision. Using variation in local sunshine as exogenous shocks to managerial mood, we report strong, robust evidence that negative mood induced by cloudy weather leads firms to undertake more aggressive...

There is tension underlying whether asset redeployability, which refers to the salability of corporate capital assets, shapes crash risk. On one hand, asset redeployability enables managers to opportunistically exploit asset sales to manage earnings upwards to hoard bad news, which, in turn,...

We examine the role and economic consequences of emotions in influencing the judgment of corporate executives. Analyzing a large sample of U.S. public firms, we find that sunshine-induced good mood leads managers to make upwardly biased earnings forecasts. Importantly, our evidence implies that...

We examine the impact of social ties between mutual fund managers and auditors of public firms on mutual fund stockholdings. We find that mutual funds whose managers are socially connected with firm auditors hold more shares of these firms. In cross-sectional results consistent with...

We analyze the impact of cross-audits between companies and mutual funds on auditors' reporting decisions. We document that companies are more likely to receive favorable audit opinions when they appoint the same auditor as their mutual fund blockholders. In cross-sectional evidence consistent...