Philipp Krüger

TL;DR: In this paper, the authors study how stock markets react to positive and negative events concerned with a firm's corporate social responsibility (CSR), and they show that investors respond strongly negatively to negative events and weakly negatively to positive events.

TL;DR: In this article, the authors test whether firms properly adjust for risk in their capital budgeting decisions and find that if managers use a single discount rate within firms, they expect that conglomerates underinvest (overinvest) in relatively safe (risky) divisions.

TL;DR: In this article, the authors proposed a theory of the profitability anomaly, where past profits forecast future returns (the profitability anomaly), and measured expectation stickiness at the firm level and found strong support for three additional model predictions: analysts are on average too pessimistic regarding the future profits of high-profit firms, stocks that are followed by stickier analysts, and stocks with more persistent profits.

TL;DR: In this article, the authors estimate the effect of mandatory greenhouse gas emissions disclosure on corporate value, using the introduction of mandatory GHG emissions reporting for firms listed on the Main Market of the London Stock Exchange as a source of exogenous variation.

TL;DR: In this paper, the authors provide evidence of categorization bias in financial markets by constructing a basket of closely related industries based on Hoberg and Phillips (2010a,b).