Psychological research suggests that individuals are satisficiers. That is, when confronted with a large number of options, individuals often choose the first acceptable option, rather than the best possible option (Simon 1957). Given the vast quantity of information available and the widespread...

Structural factors which cause irrational investment in defined contribution savings plans are of great concern. Using a proprietary database of 401(k) plans we show that alphabeticity – the order that fund names appear when listed in alphabetical order – significantly biases participants'...

Stock trading apps have encouraged millions of people to begin micro-investing. While there is no doubt that investing is beneficial in the long-run, we demonstrate a downside to the micro-investing trend. Using a novel data set of stock trades from an app-based broker, we show that anchoring...

This paper examines the ability of firms to overcome cross-country borrowing barriers through foreign asset connections. We find that firm-level foreign assets are an important mechanism in reducing the boundary between borrowers and lenders and thereby enhancing capital access in the syndicated...

We examine the global geography and pricing of the syndicated loan market using a sample of more than 13,000 loan packages issued to 4,713 firms headquartered across 10 countries during the 1998 to 2004 sample period. Our results provide insights into the relative importance of information...

If one customer accounts for a large portion of a supplier's sales, then the loss of that one customer can cripple the supplier's financial health. As a precaution against the additional operating risk induced by being in an important relationship with a customer, I find that suppliers in such...

The market is comprised of investors with a broad range of expertise. As a result, investors may make decisions differently from one another. Research reveals that investors use name-based heuristics, or short-cuts, including alphabetical ordering (Itzkowitz, Itzkowitz, and Rothbort 2015), name...

This paper examines the role of buyer-supplier relationships on suppliers' financial constraints. Buyers are non-financial stakeholders with both the ability and incentive to monitor their supplier and act as a certifying agent. This mitigates agency costs, reducing the wedge between the costs...

Using recent data from an American app-based consumer stock brokerage, we provide novel evidence about how to overcome gender differences in stock market participation. We show that fewer women than men are encouraged to participate in the stock market. However, following equal encouragement to...