We show how a regulatory disclosure of hidden debt can eliminate a large mispricing in housing. In a setting where homebuyers must combine several sources of debt, they are biased towards hidden loans, especially if they are young, or have no experience in financial investments or home...

This paper examines the impact of credit data sharing among competitive banks of different sizes in open banking. Analyzing data from three predecessors of Bank of America, we find that information sharing enhances predictive capabilities and increases market lending profit as the network size...

We show that a regulatory disclosure of hidden debt eliminated a large mispricing in housing. In a setting where homebuyers must combine several sources of debt, they are biased towards hidden loans, especially if they are young, or have no experience in financial investments or home...

We examine herding behavior of domestic and foreign investors in the Indonesian stock market. We document that both domestic and foreign investors from a particular brokerage firm tend to herd. The foreign investors exhibit a greater propensity to herd than domestic investors. However, when we...

In this study, we examine the relationship between investor demand for IPOs prior to offerings and aftermarket performance of IPO firms during the period from 1993 to 1997 in the Hong Kong stock market. The paper finds that IPOs with high investor demand have large positive initial returns but...

Using transaction-level credit card spending from a large US financial institution, we show that disaggregated sales provide accurate and persistent signals of customer demand relevant to a firm's stock pricing. After controlling for earnings and sales surprises, one inter-quintile increase in...

In this study, we examine the relation between investor demand for IPOs prior to offerings and aftermarket performance of IPO firms in the Hong Kong stock market. The paper finds that IPOs with high investor demand have large positive initial returns but negative long-run excess returns, while...

Using a sample of Hong Kong-listed stocks that are also traded on the London Stock Exchange, we document the following results: first, London market makers use Hong Kong's closing prices as the benchmark for setting the opening prices in London. Second, trading in the London market plays only a...

Foreign investors generally underperform domestic investors in trading activities. This study shows that their inferior performance is attributed to non-initiated orders. Foreign investors actually perform better than domestic investors in initiated orders. In addition, their performance is also...