Bidisha Chakrabarty, Terrence Hendershott, Samarpan Nawn, and Roberto Pascual ♦ We examine hidden orders usage by algorithmic traders (ATs) and non-ATs. ATs extensively use hidden orders but of smaller size than non-ATs, who are the primary contributors to hidden volume.…
William Grieser, Ioannis Spyridopoulos, and Morad Zekhnini ♦ We show that a firm’s financial constraints trigger investment disruptions that propagate through the production network. Propagation effects account for about half of the total investment reduction due to constraints. Network rigidities…
Léa Stern ♦ This paper studies the importance of corporate boards through a learning model in which capital markets learn about incoming directors’ quality. The model’s predictions are tested across a large sample of director appointments. Estimates show that governance-related…
Yukun Liu and Xi Wu ♦ Using firms’ online job postings, we identify economically related peer firms in the labor market. Firms’ labor peers are vastly different from their industry peers, where the overlap is about 20%. Returns of labor-linked…
Zhe Li, Massimo Massa, Nianhang Xu, and Hong Zhang ♦ Can social norms give rise to distorted information in China? We observe that China’s leading social norm related to alcohol consumption and social drinking enhance earnings management. An analysis of…
Albert S. Kyle, Anna A. Obizhaeva, and Yajun Wang ♦ We study trading among strategic traders who may incorrectly assess the degree of market crowdedness. These mistakes distort equilibrium strategies and prices. When traders underestimate market crowdedness, they target larger inventories…
