Xiaoran Jia, Kiridaran Kanagaretnam, Chee Yeow Lim, and Gerald J. Lobo ♦ Using an international sample of IPO firms and two country-level measures of financial literacy, we find strong evidence that financial literacy is negatively associated with IPO underpricing. In cross-sectional analyses, we…
Sean J. Flynn, Jr. and Andra Ghent ♦ Yes. We show that aggregate stock returns predict aggregate U.S. employment, despite the industrial composition of publicly traded firms differing markedly from that of all firms, and the representativeness of public firms…
John Chi-Fong Kuong and Vincent Maurin ♦ This article analyzes the optimal allocation of losses via a Central Clearing Counterparty (CCP) in the presence of counterparty risk. A CCP can hedge this risk by mutualizing losses among its members. This…
Paolo Pasquariello and Yifei Wang ♦ Sophisticated investors frequently choose to publicly disclose private information, a phenomenon inconsistent with most theories of speculation. We propose and test a model to bridge this gap. We show that when a speculator cares…
Ilias Filippou, Mark P. Taylor, and Zigan Wang ♦ Analyzing 48 foreign exchange (FX) rates and 1.2 million FX-related news articles over a 35 year period, using digital textual analysis, we find that a currency reversal investment strategy that buys (sells) currencies…
Xi Dong, Qi Liu, Lei Lu, Bo Sun, and Hongjun Yan ♦ We analyze a model in which an anomaly is unknown to arbitrageurs until its discovery, and test the model implications on both asset prices and arbitrageurs’ trading activities. Using data on 99…
