We show that common short sold capital can explain future six-factor excess return correlation one month ahead, controlling for many pair characteristics, including similarities in size, book-to-market, and momentum. We explore the possible mechanisms that could give rise to this relationship....

This paper provides empirical evidence that higher lobbying expenditures are associated with higher operational performance variability. The estimates indicate a positive relationship between lobbying expenditures and the variability of return on asset and return on equity. The results are...

This paper examines the effect of firms’ lobbying activities on penalties received from public competition authorities. We show that lobbying expenditures are negatively associated with the amount of the cartel sanction, within cartel. Our estimates also report that cartel sanctions are more...