Firms’systematic risk falls (increases) sharply following investment (disinvestment). This risk dynamics is driven by real investment and not by changes in …rm characteristics and is strongest among …rms with valuable investment opportunities, highly irreversible investment and low operating leverage. Consistent with rational pricing, …rms with poor investment opportunities, those most likely t...

Historically, Chinook Salmon in the California Central Valley reared vast wetlands of Sacramento–San Joaquin Delta. However, more than 95% floodplain, riparian, and wetland habitats Delta have become degraded because anthropogenic factors such as pollution, introduced species, water diversions, levees. Despite pronounced habitat loss, previous work using otolith reconstructions has revealed tha...

The increased global exchange of merchandise, services, and capital is a key characteristic of the contemporary business environment. International firms position themselves to gain competitive advantage from opportunities offered in this larger and more open economic system. Similarly, governments reap rewards from firms that establish operations within their borders. There are strong argument...

This paper studies whether banks charge higher or lower interest rates on loans to firms with overconfident CEOs. It establishes a theoretical model to show the relationship between the loan rate and overconfidence of the borrowing firm’s CEO. It also conducts empirical analyses to test the predictions of the model. As predicted in the model, firms with overconfident CEOs enjoy lower loan rates...