This paper develops the building blocks for a legal theory of finance. LTF holds that financial markets are legally … self-destruction of the financial system. This law-finance paradox tends to be resolved by suspending the full force of law …, financial markets exhibit dynamics that frequently put them in direct tension with commitments enshrined in law or contracts …

quality of institutions, such as judicial efficiency and rule of law, but have no relationship with measures of shareholder … efficiency and rule of law, but negatively with shareholder rights' protection, controlling for risk and expected earnings growth …

We analyze how the law and its enforcement affect equity market equilibrium. Improvements in the legal system, while …

Many questions about institutional trading can only be answered if one can track high-frequency changes in …. We infer daily institutional trading behaviour from the “tape”, the Transactions and Quotes database of the New York …

(1985) to a situation in which the insider with fundamentals-information competes against an insider with trade-information …-tradable or illiquid assets. The insider with trade-information is one of the fund managers. We find that front-running activity … and in which noise trading is endogenized. Noise traders are small investors trading through mutual funds to hedge non …

information flow to traders. Conversely, an insider solves the intertemporal competition problem through vertical integration … information is provided by an analyst is thicker and more informative than one where an insider trades. …Fundamental information resembles in many respects a durable good. Hence, the effects of its incorporation into stock …

phenomenon based on trading constraints and asymmetric information. A key feature of our theory is that rational uninformed …). We test our hypothesis against competing stories such as patterns of insider trading driven by earnings announcement … investors may react more strongly to the absence of insider sales than to their presence (the 'dog that did not bark' effect …

content of the news. Coverage in news analytics speeds up the market reaction in terms of stock price response and trading …

new dataset of over 900 nascent entrepreneurs with information on financing from conventional sources as well as business … external finance, especially equity. However, the most important determinant of debt is house ownership. This indicates that … to obtain start-up finance. New ventures should therefore strategically use their innovativeness in order to obtain …

acquisition of information about firms, its partial revelation through stock prices, capital allocation and income. The stock … specialization, wealth inequality, stock trading intensity, liquidity and return volatility. …