ABSTRACT I develop measures of firm-level pay disparity and examine their relation to firm performance. Using comprehensive compensation data for a large sample firms, find no statistically significant between the ratio CEO-to-mean employee next create empirical models that allow me separate components CEO explained by economic factors from those are not, use these estimate unexplained disparity. After validating my as proxy fairness, robust evidence negative (positive) (explained) future...

We study the effects of corporate taxes on income inequality.Using state as a setting, we provide evidence that tax cuts lead to increases in inequality.This result is robust across regression, matching, and synthetic controls approaches, controlling for host potential confounders.We use Statistics Income data from IRS explore mechanisms behind this result.We find higher both top bottom earners, but gains capital earners exceed total earners.This suggests that, while all appear benefit cut,...

We examine the evolution of ESG reports S&P 500 firms from 2010 to 2021. The percentage releasing these voluntary disclosures increased 35% 86% during this period, although length documents experienced more modest growth. Using a semisupervised machine-learning approach and guided by volun- tary standards that identified material issues, we explore whether content in has become relevant investors. On average, devote most their topics are sector. relative amount information 11% after release...

<title>Abstract</title> In the United States, corporations were directly responsible for more than 30 percent of country’s 2022 total emissions, or approximately 2 billion metric tons CO2 equivalents (1). Worried in part about potential regulatory threats that companies face, investors and asset managers have called greater transparency publicly traded firms’ climate impacts. These calls sparked a debate whether government agencies should require such disclosures, market pressures are...

We study the effects of corporate taxes on income inequality. Using state as a setting, we provide evidence that tax cuts lead to increases in This result is robust across regression, matching, and synthetic controls approaches, controlling for host potential confounders. use Statistics Income data from Internal Revenue Service explore mechanisms behind this result. find higher both top bottom earners, but gains capital earners exceed total earners. suggests although all appear benefit cut,...

Motivated by methods used to evaluate the quality of data, we create a novel firm-year measure estimate level error in financial statements. The measure, which has several conceptual and statistical advantages over available alternatives, assesses extent features distribution firm’s statement numbers diverge from theoretical posited Benford’s Law. After providing intuition for theory underlying use numerical demonstrate that certain types increase deviation distribution. We corroborate...

I develop measures of firm-level pay disparity and examine their relation to firm performance. Using comprehensive compensation data for a large sample firms, find no statistically significant between the ratio CEO-to-mean employee next create empirical models that allow me separate components CEO explained by economic factors from those are not, use these estimate unexplained disparity. After validating my as proxy fairness, robust evidence negative (positive) (explained) future

Using new data on workforce composition and wages, we systematically measure the employment impact at U.S. firms from 2008 to 2020, including 2,682 unique 22,322 firm-year observations. We document significant variation across industries within each industry suggesting substantial heterogeneity of firm human capital strategies. Employment is moderately associated with lower employee turnover higher valuation, while that have sales invest more in innovation exhibit impact. Our results...

We explore the recent landscape of quantitative human capital (HC) disclosures for publicly listed U.S. firms. Using a hand-collected sample more than 2,000 firms from 2018-2022, we show that an amendment to Regulation S-K requiring disclose information about had economically meaningful effect on disclosure. The regulation increased in 10-K filings both at extensive and intensive margins, with percentage 10-Ks metrics increasing 40% pre-regulation 73% post regulation, average number per 1...

We investigate the relation between corporate performance and overall economic growth in United States. In particular, we focus on impact of U.S. tax regime this relation. Exploiting time-series variation a shock, document that relatively higher income rate treatment foreign earnings corporations have contributed to disconnect sector economy. Specifically, domestic (national) profits, average, has outpaced economy, increases as difference average other Organisation for Economic Co-operation...

Using a novel dataset, we show that components of firms' GAAP earnings stemming from ancillary business activities or transitory shocks are significant in frequency and magnitude. These have grown over time dispersed across various sections the 10-K. Excluding them yields core measure distinguishes between recurring non-recurring net income forecasts future performance. Analysts market participants slow to impound these components' implications, particularly amounts disclosed footnotes....

We study the role of financial flexibility on firms’ workforce reduction decisions during a time extreme economic uncertainty. Using daily data from start COVID-19 pandemic —March through May 2020 — for 354 largest U.S. employers, we first descriptively show that negatively shocked firms were 39.2 percentage points more likely to reduce their than positively firms. Our central finding is pre-pandemic significantly reduces likelihood reductions. further demonstrate attenuating greatest among...

We examine whether a country's management of the COVID-19 pandemic relate to downward biasing number reported deaths from COVID-19. Using deviations historical averages total monthly within country, we find that probability underreporting COVID-related for countries with most stringent policies was 58.6%, compared 28.2% least policies. Countries lowest ex ante healthcare capacity in terms available beds underreport by 52.5% on average, 23.1% greatest capacity.

This paper studies the effects of corporate tax changes on income inequality. Using state rate as a setting, we show that cutting rates leads to increases in result is robust using regression and matching approaches, controlling for host potential confounders. Contrary cuts, find no inequality at level. We then use data from IRS Statistics Income explore mechanism behind rise cuts lead higher reported capital decrease wage salary income. These are concentrated among top earners, those...

This paper studies the effects of corporate tax changes on income inequality. Using state rate as a setting, we show that cutting rates leads to increases in result is robust using regression and matching approaches, controlling for host potential confounders. Contrary cuts, find no inequality at level. We then use data from IRS Statistics Income explore mechanism behind rise cuts lead higher reported capital decrease wage salary income. These are concentrated among top earners, those...

This paper examines the impact of an economy-wide shift to broad-based employee ownership on wealth concentration in United States. Relying government data, we show that if all private firms became 30% employee-owned, distribution would be profoundly altered. Those currently bottom 90% see substantial gains, with many these gains going traditionally marginalized communities. Only top 1% holders a significant decrease their wealth, although decline still only 14% net average.

We study the effects of corporate taxes on income inequality. Using state as a setting, we provide evidence that tax cuts lead to increases in This result is robust across regression, matching, and synthetic controls approaches, controlling for host potential confounders. use Statistics Income data from IRS explore mechanisms behind this result. find higher both top bottom earners, but gains capital earners exceed total earners. suggests that, while all appear benefit cut, relation between...

We investigate the relation between corporate performance and overall economic growth in United States. In particular, we focus on impact of U.S. tax regime this relation. Exploiting time-series variation a shock, document that relatively higher income rate treatment foreign earnings corporations have contributed to disconnect sector economy. Specifically, domestic (national) profits, average, has outpaced economy, increases as difference average other OECD countries increases. The...