We show that firm liability structure and associated cash flow matter for firm behavior, and that financial market participants price stocks accordingly. Looking at firm level stock price changes around monetary policy announcements, we find that firms that have more cash flow exposure see their...

We show that firm liability structure and associated cash flow matter for firm behavior, and that financial market participants price stocks accordingly. Looking at firm level stock price changes around monetary policy announcements, we find that firms that have more cash flow exposure see their...

We show that firm liability structure and associated cash flow matter for firm behavior, and that financial market participants price stocks accordingly. Looking at firm level stock price changes around monetary policy announcements, we find that firms that have more cash flow exposure see their...

We propose a search and matching model that can account for a long-run joint relationship between inflation, unemployment, and equity prices. The model predicts the following longrun joint relationship: (i) a positive relationship between inflation and unemployment; (ii) a negative relationship...

This study documents robust empirical evidence that a significant joint relationship between the long-term trends of inflation, unemployment, and equity prices exists in the post-WWII U.S. data: (i) a positive relationship between inflation and unemployment; (ii) a negative relationship between...

We explore how investor attention paid to dangerous nuclear tests in an adjacent country influences financial market outcomes. To measure the attention paid to North Korean nuclear threats, we introduce a weekly Google search volume index for keywords on North Korean nuclear events. Using a...