Production Networks and Stock Returns: The Role of Vertical Creative Destruction We study the relation between firms' risk and their upstreamness in a production network. Empirically, firms' average stock returns and productivity exposures increase monotonically with their upstreamness. We quantitatively explain these novel facts using a multi-layer general equilibrium model. Read more…

Product Life Cycles in Corporate Finance We develop a novel 10-K text-based model of product life-cycles and examine firm investment policies. Conditioning on the life cycle substantially improves the explanatory power of investment-Q models. The improved models reveal that investment follows a pecking order through the life cycle. Firms initially Read more…

Corporate ESG Profiles and Investor Horizons We consider motivations for institutional investors to prefer firms with higher Environmental, Social and Governance (ESG) profiles. We find that such preferences depend critically on investor horizons: Investors with longer horizons tend to prefer higher ESG firms significantly more than do short-term investors. Consistent Read more…