This paper studies the effects of international coordination failure on resource allocations. Employing the U.S. withdrawal from the 2015 Paris Agreement as an experiment, we find that U.S. polluting firms increase their emissions and receive bank financing at lower costs after the sudden...

We document that the relative placement of analysts' target price within their subjective distribution of scenario-based valuations for the covered firm (i.e., tilt) is informative to investors. When analysts forecast price appreciation, tilt incrementally predicts ex post valuation errors and...

Risk forecasting is crucial for informed investment decision-making. Moreover, the salience of investment risk increases during economically uncertain times. In this paper, we study how sell-side analysts form expectations of firm risk, under different macroeconomic conditions (low versus high...

We examine how regulatory restrictions on capital market activity affect the compensation contracting environment within firms. This study aims to expand our understanding of how financial market development affects firm risk-taking via management compensation designs. Specifically, taking...