We document that M\&A withdrawals are more sensitive to acquirers’ announcement returns when the deal is all-cash, suggesting an intriguing interaction between payment methods and market feedback. Motivated by this evidence, we develop a model where managers negotiate over payment methods and learn about deal synergies from post-announcement prices. Our theory identifies two forces---shaping price informativeness and truncating positive NPV projects---through which payment methods affect...

We develop a model to illustrate that equity-based compensation for non-executive
employees and product market decisions are related. When the product market is com-
petitive and employees have low bargaining power, the unique equilibrium is for each
firm's owners to o¤er equity-based compensation to their employees. In this setting,
equity-based compensation leads to a lower wage rate, which makes each firm...

We study how commodity financialization affects information transmission and aggre-
gation in a commodity futures market. The trading of financial traders injects both
fundamental information and unrelated noise into the futures price. Thus, price in-
formativeness in the futures market can either increase or decrease with commodity
financialization. When the price-informativeness e¤ect is negative, the futures price
bias can increase...