We document that M&A withdrawals are more sensitive to acquirers' announcement returns when the deal is financed entirely with cash, suggesting an intriguing interaction between payment methods and market feedback. Motivated by this evidence, we develop a model in which managers learn about deal synergies from post-announcement stock prices, with the payment method shaping the informativeness of this feedback. Our theory not only explains these...

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...