Yashar H. Barardehi, Dan Bernhardt, Zhi Da, and Mitch Warachka ♦ Order flow segmentation prevents direct interactions between U.S. retail and institutional investors. Using the imbalance in observable internalized retail trades, we show wholesalers use retail flow to provide liquidity to…
Ping Guo, Guifeng Shi, and Gary Gang Tian ♦ This study investigates how political patronage influences local firms’ investment decisions in China, focusing on changes in patronage ties resulting from provincial leadership turnover. By examining prefectural officials with connections to…
Prasanna Tantri ♦ A well-documented pattern of bank lending during crises is the allocation of credit to low-quality firms at the expense of productive firms, leading to inefficient resource allocation at the macro level. We investigate the role of bank…
Bing Han and Gang Li ♦ We show theoretically and empirically that the cross-section of stock return idiosyncratic volatilities contains useful information about the ICAPM. We construct a proxy cross-sectional bivariate idiosyncratic volatility (CBIV) for the covariance risk between the…
Tao Li, Donghwa Shin, and Baolian Wang ♦ We document numerous occurrences of pump-and-dump schemes (P&Ds) targeting cryptocurrencies, which tend to trigger short-term episodes that feature significant increases in prices, volume, and volatility, followed by quick reversals. The evidence we…
Ryan G. Chacon, Rachel E. Gordon, and Adam S. Yore ♦ We investigate whether compensation consultants recommend excessive pay to earn repeat business by studying consultant changes. Our results show consultants’ interests are aligned with shareholders to appropriately pay the…
