We find that index ETFs' tracking error, a measure of the manager's ability to replicate the index's return, is a significantly and consistently negative predictor of performance. Tracking error is highly persistent, indicating index ETF manager's ability to replicate the index persists over...

We adapt methodologies from computational linguistics to construct a novel measure of trust at the firm level. This measure is based on the extent of trust expressed by analysts and firm managers during quarterly earnings conference calls or other events and the degree of trust demonstrated by...

Clientele credit is a firm’s collection of payments from customers based on the firm’s unfulfilled obligations on the future delivery of services or goods. This paper is the first to document that clientele credit is an economically important but overlooked liquidity resource and has a...

This paper studies how fake news makes firm-level stock price impact and examines affected firms’ strategic responses. Using data on fake news identified by the SEC, we analyze the effect of fake news on the price and behavior of affected firms. First, we find that firms treated by falsely...