The author examine the effect of corporate domicile of Hong Kong companies to other countries that were motivated by a desire to reduce political risk. They argue that political risk is too subjective a concept to be exposed to systematic quantitative analysis. The authors provide empirical...

This study examines the relationship between outside directors’ equity-based compensation (DEC) and stock price crash risk using a sample of U.S. firms from 2008 to 2021. We find that DEC is associated with lower crash risk, primarily through its role in reducing over-investment, financial...

Using taxicab tipping records in New York City (NYC), we develop a novel measure of real-time utility and quantitatively assess the impact of wealth change on the well-being of individuals based on the core tenet of prospect theory. The baseline estimate suggests that a one standard deviation...

Do managers learn from stock prices? In this study, we investigate the feedback effect of stock prices on real decisions by utilizing the staggered adoption of the inevitable disclosure doctrine (IDD), which exogenously decreases the stock price informativeness of firms headquartered in states...