We introduce a general framework for analyzing large-scale text-based data, combining the strengths of neural-network language processing and generative statistical modeling. Our methodology generates textual factors by (i) representing texts using vector word embedding, (ii) clustering words...

Drawing upon knowledge-based view and transaction-costs perspective, the study identifies customer relationship orientation and structural flexibility as the two key mechanisms that service multinationals can use to capture the benefits and mitigate the costs of global demand heterogeneity....

We show that firms collect more than 70% of their cash flow in the second half of the fiscal year, and firms that collect more cash by year-end earn a 6% higher per annum risk premium and save more cash. We rationalize these facts in a quantitative investment-based asset pricing model. Immediate...

Does the emigration of highly-skilled workers deplete local human capital? The answer is not obvious if migration prospects induce human capital formation. We analyze a unique natural quasi-experiment in the Republic of the Fiji Islands, where political shocks have provoked one of the largest...

Does the emigration of highly-skilled workers deplete local human capital? The answer is not obvious if migration prospects induce human capital formation. We analyze a unique natural quasi-experiment in the Republic of the Fiji Islands, where political shocks have provoked one of the largest...

The impact of trade liberalization on productivity growth is still an empirical issue; the theoretical literature is as yet unclear on the direction of any such association. This paper develops an analytical framework and employs it to empirically test whether trade liberalization in Indian...