This paper reviews the up-to-date theoretical, empirical, and experimental literature related to the trading venue choice in the context of the fragmented equity markets. We provide a brief background on the history of trading fragmentation in the equity market and its determinants. We discuss...

Zero-commission brokers increasingly route orders to wholesale market-makers and away from exchanges to possibly earn more PFOF in compensation for commission losses. Retail investors move assets to zero-commission brokers, whose assets increase 7%, despite investors’ awareness of potential...

We examine the impact of clients' tax enforcement on financial statement auditors. In a regression discontinuity design, we exploit the firm-registration-date-based application of a new rule that assigns firms to two different tax enforcement regimes. Our analysis implies that auditors exert...

We study the relationship between the availability of alternative data and corporate financial misconduct amongst Chinese firms. We first show that companies’ online sales data independently collected by third party data vendor can detect financial misconduct before Dec 2018 when such...

Using a novel dataset of media sentiment concerning macroeconomic developments, we show that sentiment for economic growth, inflation, unemployment, and bond prices predict hedge fund returns. We blend these proxies with social disorder and political sentiment to create a broad macro sentiment...

We study the impact of the adoption of zero commissions by major retail brokers and find that retail brokers that started charging zero commissions dramatically increase their market share of client assets. In addition, these retail brokers increasingly routed orders off exchange (i.e., OTC) to...