@journalfqa.bsky.social
Economically connected stocks exhibit an asymmetric tug-of-war: peers' overnight gains inflate a stock's open yet reverse intraday; intraday returns propagate across firms with minimal overnight response. Heterogeneous demand drives cross-predictability. jfqa.org/wp-content/u...
November 10, 2025 at 6:03 PM
Economically connected stocks exhibit an asymmetric tug-of-war: peers' overnight gains inflate a stock's open yet reverse intraday; intraday returns propagate across firms with minimal overnight response. Heterogeneous demand drives cross-predictability. jfqa.org/wp-content/u...
Corporate direct investments in fintech startups generate mutual gains: startups innovate more and achieve higher exit success driven by strategic alliances and enhanced monitoring; corporate investors in financial sector gain in performance and valuation. jfqa.org/wp-content/u...
November 6, 2025 at 7:05 PM
Corporate direct investments in fintech startups generate mutual gains: startups innovate more and achieve higher exit success driven by strategic alliances and enhanced monitoring; corporate investors in financial sector gain in performance and valuation. jfqa.org/wp-content/u...
Institutional investors use insider-like insights from VC funds to beat the market—spotting emerging tech early and using it to better pick public stocks. #VentureCapital #Investing #Alpha www.cambridge.org/core/journal...
November 3, 2025 at 7:04 PM
Institutional investors use insider-like insights from VC funds to beat the market—spotting emerging tech early and using it to better pick public stocks. #VentureCapital #Investing #Alpha www.cambridge.org/core/journal...
We show that alumni networks matter—a lot. One-third of VC deals involve same-school ties, with 33% higher IPO rates. Not just favoritism; information flow matters. But the gains accrue to elite schools with few first-gen or minority students. www.cambridge.org/core/journal...
October 30, 2025 at 4:45 PM
We show that alumni networks matter—a lot. One-third of VC deals involve same-school ties, with 33% higher IPO rates. Not just favoritism; information flow matters. But the gains accrue to elite schools with few first-gen or minority students. www.cambridge.org/core/journal...
Private equity funds increasingly use debt to delay capital calls and boost performance, supporting fundraising and manager pay, but raising concerns for investors. jfqa.org/wp-content/u...
October 28, 2025 at 4:12 PM
Private equity funds increasingly use debt to delay capital calls and boost performance, supporting fundraising and manager pay, but raising concerns for investors. jfqa.org/wp-content/u...
The role of corporate diversification in debt maturity choices has been largely neglected. We show that debt maturity is endogenous to a firm's divisional structure, suggesting that conventional measures of the diversification discount might be misleading. www.cambridge.org/core/journal...
October 23, 2025 at 10:20 PM
The role of corporate diversification in debt maturity choices has been largely neglected. We show that debt maturity is endogenous to a firm's divisional structure, suggesting that conventional measures of the diversification discount might be misleading. www.cambridge.org/core/journal...
The Agreement on Trade-Related Aspects of Intellectual Property Rights leads to more firm-specific info in a firm’s stock price. The effect is stronger for innovative firms, firms in countries with strict law enforcement and with more analyst coverage. www.cambridge.org/core/journal...
October 20, 2025 at 4:43 PM
The Agreement on Trade-Related Aspects of Intellectual Property Rights leads to more firm-specific info in a firm’s stock price. The effect is stronger for innovative firms, firms in countries with strict law enforcement and with more analyst coverage. www.cambridge.org/core/journal...
Do common owners benefit from holding competitors? Yes. Active equity funds with more common ownership earn 1-2% higher returns (even after fees) and vote *against* exec pay-performance sensitivity and *for* common directors in product market competitors. jfqa.org/wp-content/u...
October 16, 2025 at 4:50 PM
Do common owners benefit from holding competitors? Yes. Active equity funds with more common ownership earn 1-2% higher returns (even after fees) and vote *against* exec pay-performance sensitivity and *for* common directors in product market competitors. jfqa.org/wp-content/u...
Institutional investors push up the cost of equity for S&P 500 firms exposed to climate risk, with banks and insurers being the biggest drivers. But higher costs don’t make firms greener. Climate price pressure bites without changing behavior. #ESG jfqa.org/wp-content/u...
October 9, 2025 at 4:56 PM
Institutional investors push up the cost of equity for S&P 500 firms exposed to climate risk, with banks and insurers being the biggest drivers. But higher costs don’t make firms greener. Climate price pressure bites without changing behavior. #ESG jfqa.org/wp-content/u...
Trade-off theory tells us that the use of debt tax shields should increase when tax rates rise. This paper shows that non-debt tax avoidance crowds out this debt tax shield, resulting in lower than expected leverage. jfqa.org/wp-content/u...
October 6, 2025 at 4:37 PM
Trade-off theory tells us that the use of debt tax shields should increase when tax rates rise. This paper shows that non-debt tax avoidance crowds out this debt tax shield, resulting in lower than expected leverage. jfqa.org/wp-content/u...
Stocks that are expensive to short underperform significantly. This explains a number of anomalies. Investors hold these shares anyway for short-term trading. When the demand for short-term trading ends, prices fall. www.cambridge.org/core/journal...
September 29, 2025 at 7:30 PM
Stocks that are expensive to short underperform significantly. This explains a number of anomalies. Investors hold these shares anyway for short-term trading. When the demand for short-term trading ends, prices fall. www.cambridge.org/core/journal...
This paper presents an equilibrium model of disagreement to explain the pre-announcement drift observed before scheduled announcements like FOMC meetings. It jointly rationalizes rising prices, low volatility, and low trading volume ahead of announcements. www.cambridge.org/core/journal...
September 25, 2025 at 5:40 PM
This paper presents an equilibrium model of disagreement to explain the pre-announcement drift observed before scheduled announcements like FOMC meetings. It jointly rationalizes rising prices, low volatility, and low trading volume ahead of announcements. www.cambridge.org/core/journal...
Skewness risk is central to understand the risk-return tradeoff in currency markets. An SRP portfolio that buys currencies with a high skewness risk premium and sells currencies with a low skewness risk premium generates high returns and Sharpe ratio. www.cambridge.org/core/journal...
September 22, 2025 at 5:52 PM
Skewness risk is central to understand the risk-return tradeoff in currency markets. An SRP portfolio that buys currencies with a high skewness risk premium and sells currencies with a low skewness risk premium generates high returns and Sharpe ratio. www.cambridge.org/core/journal...
Bank competition reduces entrepreneurial gaps. I show that interstate deregulation cuts gender gaps by 40% and racial gaps by 55%. Competition improves financial services in minority communities and reduces lending discrimination. #Entrepreneurship #Diversity www.cambridge.org/core/journal...
September 17, 2025 at 5:52 PM
Bank competition reduces entrepreneurial gaps. I show that interstate deregulation cuts gender gaps by 40% and racial gaps by 55%. Competition improves financial services in minority communities and reduces lending discrimination. #Entrepreneurship #Diversity www.cambridge.org/core/journal...
Weed at work? Recreational marijuana laws reduce firm employment—especially in high-skill, unionized firms and states with many dispensaries—and curb investment, sales growth, and innovation, signalling labour frictions with broad economic costs. #EconResearch
www.cambridge.org/core/journal...
www.cambridge.org/core/journal...
September 11, 2025 at 4:33 PM
Weed at work? Recreational marijuana laws reduce firm employment—especially in high-skill, unionized firms and states with many dispensaries—and curb investment, sales growth, and innovation, signalling labour frictions with broad economic costs. #EconResearch
www.cambridge.org/core/journal...
www.cambridge.org/core/journal...
Do borrowers ever fully pay off mortgages when underwater? Yes—and those payoffs provide a new way to estimate lower bounds on default costs, which are often substantial. www.cambridge.org/core/journal...
September 4, 2025 at 4:55 PM
Do borrowers ever fully pay off mortgages when underwater? Yes—and those payoffs provide a new way to estimate lower bounds on default costs, which are often substantial. www.cambridge.org/core/journal...
Descendants of risk-loving cultures take more (idiosyncratic) financial risks. Conditional on participation, they allocate a larger share of wealth to equities and, importantly, favor directly held stocks over funds and form more volatile portfolios. jfqa.org/wp-content/u...
August 28, 2025 at 5:24 PM
Descendants of risk-loving cultures take more (idiosyncratic) financial risks. Conditional on participation, they allocate a larger share of wealth to equities and, importantly, favor directly held stocks over funds and form more volatile portfolios. jfqa.org/wp-content/u...
Using a new information separation theorem, we show that ambiguity-averse investors are induced to participate fully in the stock market despite model uncertainty and asymmetric information by a well-designed index portfolio. This portfolio prices all assets. www.cambridge.org/core/journal...
August 25, 2025 at 4:46 PM
Using a new information separation theorem, we show that ambiguity-averse investors are induced to participate fully in the stock market despite model uncertainty and asymmetric information by a well-designed index portfolio. This portfolio prices all assets. www.cambridge.org/core/journal...
Stock returns follow a V-shape pattern around recessions which the term spread robustly signals. Recession probabilities using the term spread predict the equity premium. Reduce equity exposure as the yield curve flattens and ramp it up when it steepens. jfqa.org/wp-content/u...
August 21, 2025 at 4:27 PM
Stock returns follow a V-shape pattern around recessions which the term spread robustly signals. Recession probabilities using the term spread predict the equity premium. Reduce equity exposure as the yield curve flattens and ramp it up when it steepens. jfqa.org/wp-content/u...
Legalizing medical marijuana boosts labor supply, attracts skilled workers, and cuts business risk—resulting in a lower cost of equity. Our study shows why drug policy is corporate finance policy. #EconTwitter #FinanceTwitter #EconResearch #MarijuanaPolicy jfqa.org/wp-content/u...
August 18, 2025 at 6:49 PM
Legalizing medical marijuana boosts labor supply, attracts skilled workers, and cuts business risk—resulting in a lower cost of equity. Our study shows why drug policy is corporate finance policy. #EconTwitter #FinanceTwitter #EconResearch #MarijuanaPolicy jfqa.org/wp-content/u...
When competition increases, some firms move to zero leverage. Do they do so because they face greater financial constraint, or because they desire financial flexibility, or the managers desire an ‘easy life’? Our evidence points to desire for flexibility. jfqa.org/wp-content/u...
August 14, 2025 at 5:15 PM
When competition increases, some firms move to zero leverage. Do they do so because they face greater financial constraint, or because they desire financial flexibility, or the managers desire an ‘easy life’? Our evidence points to desire for flexibility. jfqa.org/wp-content/u...
Do debt-equity conflicts impair efficiency in distressed firms? Choi and Asai find that lender-affiliated directors improve firm outcomes but possible spillovers on other stakeholders raise concerns about the broader welfare implications. jfqa.org/wp-content/u...
August 6, 2025 at 10:10 PM
Do debt-equity conflicts impair efficiency in distressed firms? Choi and Asai find that lender-affiliated directors improve firm outcomes but possible spillovers on other stakeholders raise concerns about the broader welfare implications. jfqa.org/wp-content/u...
Changes in political leadership and rising polarization in the U.S. influence executives’ corporate culture messaging. Politically misaligned executives strategically message less about innovation, quality, and respect.
jfqa.org/wp-content/u...
jfqa.org/wp-content/u...
July 23, 2025 at 8:27 PM
Changes in political leadership and rising polarization in the U.S. influence executives’ corporate culture messaging. Politically misaligned executives strategically message less about innovation, quality, and respect.
jfqa.org/wp-content/u...
jfqa.org/wp-content/u...
Crypto pump-and-dumps (P&Ds) are a new type of manipulation with dramatic increases in prices, volume, and volatility. Prices peak in minutes, followed by quick reversals. Our research shows banning P&Ds boosts crypto liquidity and supports price stability.🚀📉🚫 www.cambridge.org/core/journal...
July 16, 2025 at 9:47 PM
Crypto pump-and-dumps (P&Ds) are a new type of manipulation with dramatic increases in prices, volume, and volatility. Prices peak in minutes, followed by quick reversals. Our research shows banning P&Ds boosts crypto liquidity and supports price stability.🚀📉🚫 www.cambridge.org/core/journal...
Price-path convexity negatively predicts short-term stock returns, both at the aggregate and firm levels. The effect is not driven by risk, illiquidity, or known return predictors, but by investor overextrapolation. #convexity #overextrapolation jfqa.org/wp-content/u...
June 20, 2025 at 5:50 PM
Price-path convexity negatively predicts short-term stock returns, both at the aggregate and firm levels. The effect is not driven by risk, illiquidity, or known return predictors, but by investor overextrapolation. #convexity #overextrapolation jfqa.org/wp-content/u...