Tobin's q is often used to proxy for firm performance when studying the relation between corporate governance and firm performance. However, our theoretical and empirical analysis demonstrate that Tobin's q does not measure firm performance since underinvestment increases rather than decreases...

State governments receive an exogenous tax windfall whenever their residents win a multi-state lottery. These lottery tax windfalls are counter-cyclical but occur during a range of economic conditions. Therefore, lottery tax windfalls enable us to estimate the impact of fiscal policy on...

We show that two novel measures of text sophistication, applied to strategy descriptions, encapsulate incremental information about hedge funds. Consistent with the linguistics literature, lexically diverse hedge funds, i.e, those that employ rich vocabulary, outperform, arbitrage prominent...