This paper studies optimal financial flexibility in debt issuance. A borrower raises funds for an initial investment and may need financing after observing a private liquidity shock. Under non-exclusive lending, new lenders price only their claims, so additional borrowing dilutes...

Common wisdom suggests that greater climate-risk disclosure improves welfare. We show that this need not be true. A firm endogenously chooses whether to adopt a costly green project to maximize its stock price. When disclosure reveals the project's climate-risk exposure...

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...

We develop a model in which information about a firm’s value can be obtained from two sources: (i) voluntary disclosure by a firm’s manager, if she is informed, and (ii) an exogenous source – news – with uncertain accuracy, i.e.,...

We investigate the competitive effects of spot-price contracting, in which a buyer and seller contract to transact at a future date at the price prevailing in that market at that future date (the "spot price"); such contracts are ubiquitous in...

Prediction markets increasingly list contracts settling on an asset price that holders can move by trading the underlying. We build a model showing that such contracts transfer wealth from prediction-market liquidity traders to manipulators and harm price discovery in the...