Working Paper
Economic Crisis and Share Price Unpredictability: Reasons and Implications
During the recent financial crisis, there was a dramatic spike, across all industries, in the volatility of individual firm share prices after...
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Noisy Factors
The Fama-French factors are ubiquitous in empirical finance. We find that factor returns differ substantially depending on when the data were...
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Debt, Equity, and Hybrid Decoupling: Governance and Systemic Risk Implications
We extend here our prior work, which focused on equity decoupling (Hu and Black, 2006, 2007, 2008), by providing a systematic treatment of debt...
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Smart Buyers
We study transactions in which sellers fears being underpaid because their outside option is better known to the buyer. We rationalize various observed...
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Political Determinants of Competition in the Mobile Telecommunication Industry
We study how political factors can shape competition in the mobile telecommunication sector. We show that the way a government designs the rules of the...
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Banning Cassandra from the Market? An Empirical Analysis of Short-Selling Bans during the Covid 19 Crisis
During the recent COVID-19 pandemic crisis, stock markets around the world have witnessed an abrupt decline in security prices and an unprecedented...
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The Deep-Pocket Effect of Internal Capital Markets
We provide evidence suggesting that incumbents’ access to group deep pockets has a negative impact on entry in product markets. Relying on a unique...
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Corporate Scandals and Household Stock Market Participation
We show that after the revelation of corporate fraud in a state, household stock market participation in that state decreases. Households decrease...
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The Rise of Independent Directors in the United States, 1950-2005: of ShareholderValue and Stock Market Prices
Between 1950 and 2005, the composition of large public company boards dramatically shifted towards independent directors, from approximately 20%...
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