Publications

The lack of diversity across gender and race of corporate boards has been one of the most significant issues in corporate board governance in recent years. Given the critical role that shareholders have in approving director appointments, we analyze voting patterns in director elections to investigate whether and how shareholders value board diversity. Using a broad sample of director elections from 2008 through 2018, we find evidence that shareholders provide greater voting support for diversity on boards, particularly gender diversity. Our findings also indicate greater additional support for diverse boards rather than for individual candidates. However, the magnitude of incremental voting support for diversity is small, and we find little evidence that the additional support is sufficient to affect voting outcomes. These findings persist over time and across key institutional shareholders who have been some of the most outspoken proponents of board diversity (i.e., SRI funds), questioning shareholders’ commitment to promoting board diversity.

While a positive view of calling has been ubiquitous since its introduction into the literature over two decades ago, research remains unsettled about the extent to which it contributes to various aspects of the good life: an optimal way of living well via worthwhile endeavors. Further, scholars have identified two conceptual types of calling, marked by internal versus external foci; yet their differential impact on outcomes indicative of the good life, such as eudaimonic and hedonic well-being (characterized by the experience of purpose and meaning versus pleasure and happiness, respectively), is unknown. Through a meta-analysis of 201 studies, we provide the first systematic review focused on these two fundamental theoretical issues in the calling literature: how strongly related callings are to outcomes in the domains of work and life and which type of calling (internally or externally focused) more strongly predicts these outcomes, if either. We find that callings more strongly relate to outcomes indicative of the good life than recently argued. We further find that callings are more strongly linked to work than to life outcomes and to eudaimonic than to hedonic outcomes. The two types of calling converge in being associated with many similar outcomes, but they show some divergence: internally focused callings are more positively related to hedonic outcomes and less positively related to eudaimonic outcomes, relative to externally focused callings. This finding supports a view of callings as hierarchically structured, with a higher-order calling factor composed of two correlated yet distinct lower-order calling types. Integrating our meta-analytic findings with relevant literatures, we propose a theoretical model that addresses psychological and social need fulfillment through which different types of callings contribute to the good life.

We document the rise of China in offshore capital markets. Chinese firms use global tax havens to access foreign capital both in equity and bond markets. In the last twenty years, China’s presence went from raising a negligible amount of capital in these markets to accounting for more than half of equity issuance and around a fifth of global corporate bonds outstanding in tax havens. Using rich micro data, we show that a range of Chinese firms, including both tech giants and SOEs, use these offshore centers. We conclude by discussing the macroeconomic and financial stability implications of these patterns.

When a romantic relationship becomes serious, partners often confront a foundational decision about how to organize their personal finances: pool money together or keep things separate? In a six-wave longitudinal experiment, we investigated whether randomly assigning engaged or newlywed couples to merge their money in a joint bank account increases relationship quality over time. Whereas couples assigned to keep their money in separate accounts or to a no-intervention condition exhibited the normative decline in relationship quality across the first 2 years of marriage, couples assigned to merge money in a joint account sustained strong relationship quality throughout. The effect of bank account structure on relationship quality is multiply determined. We examine—and find support for—three potential mechanisms using both experimental and correlational methods: merging finances (1) improves how partners feel about how they handle money, (2) promotes financial goal alignment, and (3) sustains communal norm adherence (e.g., responding to each other’s needs without expectations of reciprocity). While prior research has documented a correlation between financial interdependence and relationship quality, our research offers the first experimental evidence that increasing financial interdependence helps newlyweds preserve stronger relationship quality throughout the newlywed period and potentially beyond.

The European Commission has taken an intelligent first step in enabling competition to Google Android and Google Play Services

Five preregistered studies (N = 1934) demonstrate that the prevalent U.S. ideology to “follow your
passions” perpetuates academic and occupational gender disparities compared to some other cultural
ideologies. Study 1 shows that the follow-your-passions ideology is commonly used by U.S. students in
making academic choices. Studies 2–5 find that making the follow-your-passions ideology salient causes
greater academic and occupational gender disparities compared to the resources ideology (i.e., the idea that
one should pursue a field that leads to high income and job security). In Study 4, the follow-your-passions
ideology causes greater gender disparities even when compared to a cultural ideology that aligns more with
the female gender role (i.e., communal ideology). In Study 5, a moderated mediation analysis supports the
hypothesis that gender disparities are explained by women’s versus men’s greater tendency to draw upon
female role-congruent selves when the follow-your-passions ideology is salient compared to when the
resources ideology is salient. Drawing upon female role-congruent selves remains a significant mediator
even when accounting for alternative mediators (e.g., appropriateness of ideology for one’s gender). The
follow-your-passions ideology may not seem explicitly gendered, but it causes greater academic and
occupational gender disparities compared to some other cultural ideologies.

There is evidence that Republican-leaning counties have had higher COVID-19 death rates than Democratic-leaning counties and similar evidence of an association between political party affiliation and attitudes regarding COVID-19 vaccination; further data on these rates may be useful.

Factor investing has been around for several decades, backed by an enormous body of literature, and yet it is still surrounded by much confusion and debate. Some of the rhetoric and myths have existed for a long time, while others have arisen in response to the difficult performance from 2018 to 2020 and the subsequent turnaround. This short piece distills the central concepts and practical takeaways of our Fact, Fiction, and Factor Investing article, which examined many claims about factor investing, referencing an extensive academic literature and performing simple, yet powerful, analysis to address those claims.

Although hedonic principles of emotion regulation suggest that people wish to feel good, the current research demonstrates that sometimes feeling good just seems wrong. Specifically, the authors argue that, immediately after viewing moralized content such as human suffering, consumers believe that it is morally appropriate to sustain negative emotions (Study 1). Thus, after exposure to content related to human suffering (vs. other negative content), consumers view subsequent mood-sustaining consumption as morally appropriate and hedonic consumption as morally inappropriate (Study 2). Consequently, they avoid repairing their emotions through hedonic consumption because of their preference to engage in morally appropriate behavior (Studies 3 through 4b); this is particularly true for individuals who view themselves as more moral (Study 4b). These effects are mitigated when the hedonic consumption is morally relevant (Study 4a), rather than prototypically frivolous. This research offers clear prescriptions to marketers about when and when not to offer hedonic consumption as mood repair. By allowing people to pay respect to suffering victims, marketers can give consumers needed space to feel their compassionate emotions

We survey the nascent literature on machine learning in the study of financial markets. We highlight the best examples of what this line of research has to offer and recommend promising directions for future research. This survey is designed for both financial economists interested in grasping machine learning tools, as well as for statisticians and machine learners seeking interesting financial contexts where advanced methods may be deployed.

Despite widespread knowledge and acceptance of the importance of climate-friendly behavior, consumers often fail to take the necessary actions to engage in more sustainable consumption. We propose a framework for structuring reminder messages to drive desired climate-friendly actions in a way that helps consumers build better long-term habits. Specifically, we formally test where to place the reminder in the consumption decision process (refilling of reusable water bottles) and find that simple action-oriented reminders, if placed early in the decision process, where they can benefit from contextual triggers, can motivate habits that endure even after the reminder period has ended. Furthermore, we find that specific sustainability-focused reminders (bringing a reusable bottle or bag) can motivate climate-friendly behaviors without negatively affecting overall consumption of the underlying good.

Despite global commitments and efforts, a gender-based division of paid and unpaid work persists. To
identify how psychological factors, national policies, and the broader sociocultural context contribute
to this inequality, we assessed parental-leave intentions in young adults (18–30 years old) planning to
have children (N = 13,942; 8,880 identified as women; 5,062 identified as men) across 37 countries that
varied in parental-leave policies and societal gender equality. In all countries, women intended to take
longer leave than men. National parental-leave policies and women’s political representation partially
explained cross- national variations in the gender gap. Gender gaps in leave intentions were paradoxically
larger in countries with more gender-egalitarian parental-leave policies (i.e., longer leave available to
both fathers and mothers). Interestingly, this cross-national variation in the gender gap was driven by
cross- national variations in women’s (rather than men’s) leave intentions. Financially generous leave
and gender-egalitarian policies (linked to men’s higher uptake in prior research) were not associated with
leave intentions in men. Rather, men’s leave intentions were related to their individual gender attitudes.
Leave intentions were inversely related to career ambitions. The potential for existing policies to foster
gender equality in paid and unpaid work is discussed

To provide a fuller picture of compliance with ASC 350-20, we hand-collect data to track 893 large acquisitions across time. Our model, which links impairments to post-acquisition accounting and market performance declines as well as acquisition-year attributes, identifies 349 acquisitions as likely to impair. We provide evidence that 65 percent of these at-risk acquisitions impair in the next two years. Our study should be useful to future research as it clarifies the role of hand-collection, market to book ratios, segment-level data, and volatility. We also offer descriptive evidence on impairment patterns. Overall, we find high levels of compliance and little opportunism.

When do people make optimistic forecasts about goal adherence? Nine preregistered studies find that a recent streak of goal-consistent behavior increases the predicted likelihood that the individual will persist, compared to various other patterns holding the rate of goal adherence constant. This effect is due to perceiving a higher level of commitment following a streak. Accordingly, the effect is larger when the behavior requires commitment to stick with it, compared to when the same behavior is enjoyable in its own right. Furthermore, the effect is weaker in the presence of another diagnostic cue of commitment: when the individual has a high historic rate of goal adherence. People also behave strategically in ways consistent with these inferences (e.g., are less likely to adopt costly goal support tools following a streak, choose partners with recent streaks for joint goal pursuit). Together, these results demonstrate the significance of streaky behavior for forecasting goal adherence.

The conduct described in the US complaints against Amazon harms competition between online stores and among the merchants who sell via them.

Several papers argue that financial economics faces a replication crisis because the majority of studies cannot be replicated or are the result of multiple testing of too many factors. We develop and estimate a Bayesian model of factor replication that leads to different conclusions. The majority of asset pricing factors (i) can be replicated; (ii) can be clustered into 13 themes, the majority of which are significant parts of the tangency portfolio; (iii) work out-of-sample in a new large data set covering 93 countries; and (iv) have evidence that is strengthened (not weakened) by the large number of observed factors.

European countries experienced a large increase in labor supply due to the influx of Ukrainian refugees after the 2022 Russia invasion. We study its dynamic effects in a spatial model with forward-looking households of different skills, trade, and endogenous capital accumulation. We find that real GDP increases in Europe in the long term, with large distributional effects across countries and skill groups. In the short run, an increase in the supply of labor strains the use of capital structures that takes time to build. Over time, countries that build capital structures increase output, resulting in potential long run benefits.