We examine interactions between investment and financing decisions in a dynamic model where the firm can alter the mix of debt and equity financing and exercise a randomly arriving and potentially short lived growth option. The firm will typically finance the exercise of the growth option with...

The credit default swaps (CDS) market provides a trading venue for downside price movement. We find that future stock price crashes are less frequent after the inception of CDS trading on the firm's debt. The causal effect of CDS trading on stock crash risk is supported by multiple approaches,...

Climate change heightens the risk of climate anomalies. We find projected climate anomalies have a significantly negative impact on agricultural financing. When the projected probability of an abnormally high temperature (low temperature, low precipitation) for a month is in the top decile,...