There is little consensus regarding the overall performance of mergers and acquisitions in the banking industry. The goal of this paper is to investigate the change in operating performance, efficiency, and value addition of US bank mergers and acquisitions after GLBA. We extend the previous...

We consider consumer responsiveness to changes in the macroeconomic environment (i.e. product demand sensitivity) to be a systematic industry characteristic useful to studying how industrial diversification adds value. We argue that diversified firms, with the advantages of their internal...

The conventional partial adjustment model, focusing on leverage evolution, has difficulty identifying deliberate capital structure adjustments as financing decisions are confounded with the mechanical autocorrelation of leverage. We propose and estimate a financing-based partial adjustment model...

This paper examines the lognormality assumption of per capita, real consumption growth, which is a common assumption in asset pricing models. We found that shocks to household consumption growth are persistent, negatively skewed, and have excess kurtosis. Therefore, we revisited the fundamental...

Negative real short-term rates occur with much higher frequency after the turn of the millennium than in the 40 years prior. This phenomenon corresponds with a significant drop in growth after 2000. In a standard representative agent consumption-based asset pricing framework with external habit,...