Competitive sorting models of the CEO labor market (e.g., Edmans, Gabaix and Landier (2009)) predict that differences in CEO productive abilities, or "talent", should be an important determinant of CEO pay. However, measuring CEO talent empirically represents a major challenge. In this paper, we...

Accounting regulators are concerned about the potential threat of long-term auditor-client relationships on auditor independence, leading to lower audit quality. The main objective of this study is to examine the association between auditor tenure and an important feature of accounting, namely...

I find that municipal bonds trade frequently at rounded prices. Over 13.6% of customer trades in the secondary market are at whole dollar prices. Prices also cluster at halves, quarters, eighths, tenths, etc. Rounding is more prominent in trades that are smaller in size and below par, and in...

We study the price discovery of municipal bonds, an important OTC market. As in markets for consumer goods, prices quot;rise faster than they fall.quot; Round-trip profits to dealers on retail trades increase in rising markets but do not decrease in falling markets. Effective half-spreads...

This paper examines stock exchange trading rules for market manipulation, insider trading and broker agency conduct across countries and over time for 42 stock exchanges around the world. Some stock exchanges have extremely detailed rules which explicitly prohibit specific manipulative...

In this paper, we use the recent collapse of the ARS market as the laboratory to study issues on the fragility of financial innovations and systemic risks. We find strong evidence of investor runs for liquidity - partly caused by a self-fulfilling panic - and coordination failures among major...

We use the recent collapse of the ARS market to study the fragility of financial innovations and systemic risks. We find strong evidence of investor runs and coordination failure among major broker-dealers in providing liquidity support. The two forces amplified each other dynamically, resulting...

In this paper, we use the recent collapse of the ARS market as the laboratory to study issues on the fragility of financial innovations and systemic risks. We find strong evidence of investor runs for liquidity - partly caused by a self-fulfilling panic - and coordination failures among major...

We use the recent collapse of the ARS market to study the fragility of financial innovations and systemic risks. We find strong evidence of investor runs and coordination failure among major broker-dealers in providing liquidity support. The two forces amplified each other dynamically, resulting...

In this paper, we investigate the multiscale cross-correlations between electricity price and trading volume in Czech market based on a newly developed algorithm, called Multifractal Cross-Correlation Analysis (MFCCA). The new algorithm is a natural multifractal generalization of the Detrended...