We investigate how improvements in organizations’ internal communication technology affect their voluntary disclosure, a form of external communication. By developing a model with a headquarters manager and several divisional managers, we formalize two competing economic forces—information...

In the United States, building infrastructure is primarily the responsibility of municipal governments. However, prior empirical evidence suggests these governments are borrowing-constrained. This paper provides new evidence and theory that link the constraint to the dominance of retail...

The boom in ESG investing has created a demand for information. ESG raters have stepped up to fill this gap, but are under scrutiny for inaccurate ratings. This inaccuracy is often measured by the divergence (low correlation) of ratings. We provide a model of ESG ratings competition, where...

A key distinction between over-the-counter markets and centralized exchanges is the non-anonymity of the transactions. In this paper, we develop a model of non-anonymous trading and compare its prices, liquidity, and efficiency of asset allocations against a baseline with anonymous transactions....

I examine how differences in the ability to identify profitable investment opportunities contribute to wealth inequality. I analyze a model of financial markets with investors heterogeneously informed about future returns. The unconditional wealth share distribution features a thick right-tail...

After initial investments, relationship financiers typically observe interim information about projects before continuing financing them. Meanwhile, entrepreneurs produce information endogenously and issue securities to incumbent insider and competitive outsider investors. In such persuasion...

After initial investments, relationship financiers typically observe interim information about projects before continuing financing them. Meanwhile, entrepreneurs produce information endogenously and issue securities to incumbent insider and competitive outsider investors. In such persuasion...

I derive a firm's optimal public disclosure policy aimed at minimizing its cost of raising capital from the equity market. Following the public disclosure, the institutional investors offer incentive contracts to their buy-side analysts to acquire independent private information. Due to the...