We present causal evidence on the e↵ect of boardroom networks on firm value and compensation policies. We exploit a ban on interlocking directorates of Italian financial and insurance companies as exogenous variation and show that firms that lose centrality in the network experience negative...

Previous research on firm performance does not adequately account for the interrelatedness of a firm's professional connections, political ties, and family business-group affiliation. Many widely-cited findings may therefore be subject to confounding bias. To address this problem, we adopt a...

Previous research on firm performance does not adequately account for the interrelatedness of a firm's professional connections, political ties, and family business-group affiliation. Many widely-cited findings may therefore be subject to confounding bias. To address this problem, we adopt a...

This paper develops a comprehensive framework that examines the earnings-returns relation based on cross-sectional and time-series variations. While the literature documents a declining relation over time using a cross-sectional analysis, an analysis of firm-level time series shows a slightly...

We demonstrate theoretically and empirically the presence of forbearance lending by profit-maximizing banks to influential buyers in a supply network. If the financial market is concentrated, then banks can internalize the negative externality of an influential firm's exit. As a result, they may...

This online appendix includes supplemental materials for "Network-motivated Lending Decisions: A Rationale for Forbearance Lending'' by Ogura, Okui, and Saito. Online Appendix 1 contains the proofs of the propositions. Online Appendix 2 presents a numerical example for the theoretical model....

This paper analyzes the impact of firm networks on Japan’s national border effect. We estimate gravity equations using data on Japan’s international and interregional trade in four machinery industries (electrical, general, precision and transportation machinery). The machinery sector is the...

This paper analyzes the impact of firm networks on Japan's national border effect. We estimate gravity equations using data on Japan's international and interregional trade in four machinery industries (electrical, general, precision and transportation machinery). The machinery sector is the...

Using close to 800,000 (2,000,000) transactions by 66,000 (303,000) households in the United States (in Finland), we show that individual investors with longer holding periods choose to hold less liquid stocks in their portfolios, consistent with Amihud and Mendelson’s (1986) theory of...

Using close to 800,000 (2,000,000) transactions by 66,000 (303,000) households in the United States (in Finland), we show that individual investors with longer holding periods choose to hold less liquid stocks in their portfolios, consistent with Amihud and Mendelson’s (1986) theory of...