We show theoretically that when Bayesian investors face time-series uncertainty about assets' risk exposures, differences in their priors affect the pricing of risk in the cross-section: different priors for the same asset can generate differences in perceived risk exposures, and thereby...

We find that the effects of common ownership vary by a firm's product market characteristics. Quasi-random increases in common ownership lead to stronger decreases in R&D and increases in prices and profitability when a firm has similar products. We find that the effects of common ownership are...

Liquidity creation is a core function of banks and an important economic service to the economy. This chapter carefully examines the theoretical and empirical literature on bank liquidity creation. The focus is on the economics of bank liquidity creation, both in the traditional relationship...

This presentation addresses the following issues: How does bank capital affect bank liquidity creation? How does bank capital affect bank performance during crises/bad times and normal times? What are implications for bank regulation?

Liquidity creation is a core function of banks and an economic service of substantial importance to the economy. This chapter reviews and synthesizes the theoretical and empirical literature on bank liquidity creation. The focus is on the economics of bank liquidity creation, both in the...

Firms that redact proprietary information in their IPO filings bear significant costs to shield that information, and yet we find that the majority choose voluntary disclosure via management forecasts. They modify the characteristics of their forecasts in ways that plausibly attempt to reduce...