We study a continuous-time model of joint leverage and liquidity management without commitment. Our model highlights how cash reserves shape capital structure policy. Although shareholders typically resist leverage reductions in canonical models (i.e., the ``leverage ratchet effect''), our model predicts...

What does market power look like in a data economy? We model data as fuel for prediction and study how it changes measured markups. Data has ambiguous effects on product markups: By reducing risk, it lowers markups. By prompting investment,...

Conventional wisdom holds that an incumbent bank would never voluntarily share proprietary borrower data with a competing lender. We study lending competition in which the incumbent owns data that generate informative signals about borrower quality and chooses how much to...

We study the sale of operating assets when the seller retains a financial stake and privately observes how valuable the asset will be under different buyers, developing a first-price scoring auction in which allocation depends on both bids and buyer...

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...