I study how asset prices vary with the risk exposures of heterogeneous financial intermediaries in the municipal bond market. Banks with local bank-branches, as marginal investors, price their interest rate risk exposure into offering yield spreads of bank-qualified bonds. The pricing of...

We investigate how social connection affects municipal finance. Municipal Bond Mutual Funds allocate more capital to counties with stronger social connection, which in turn lowers the municipalities’ financing costs in the municipal bond market. Consistent with the familiarity-driven demand...

Exploiting a shock drawing public attention to banks’ financial relationships with the firearms industry – Antigun activism following the 2018 Parkland shooting – this paper demonstrates that political values shape depositor behavior. I find that, following the 2018 Parkland shooting,...

Legislation guiding environmental policy in the US is set largely at the federal level, whereas, the primary monitoring and enforcement responsibility is decentralized to state & local authorities. Consistent with the idea that households' marginal willingness to pay for environmental quality...

AbstractTHREE ESSAYS IN BEHAVIORAL FINANCEByByoung-Hyoun HwangWhile not devoid of sentiment, self-interested rational decisionmakers in traditional economic models are assumed to be immune toits influence. The purpose of this dissertation is to explorewhether financial markets can be better...

We study common determinants of daily bid-ask spreads and trading volume for the bond and stock markets over the 1991-98 period. We find that spread changes in one market are affected by lagged spread and volume changes in both markets. Further, spread and volume changes are predictable to a...

This paper examines the mechanism through which the incorporation of information into prices leads to cross-autocorrelations in stock returns. The lead-lag relation between large and small stocks increases with lagged spreads of large stocks. Further, order flows in large stocks significantly...

This paper explores liquidity movements in stock and Treasury bond markets over a period of more than 1800 trading days. Cross-market dynamics in liquidity are documented by estimating a vector autoregressive model for liquidity (that is, bid-ask spreads and depth), returns, volatility, and...