Unlike issuer-paid credit rating agencies (CRAs), investor-paid CRAs are compensated by investors for their rating services. This paper documents that the coverage of an investor-paid rating agency (the Egan Jones Ratings, EJR) increases rated firms' stock price informativeness. To alleviate...

Short sellers assist in impounding negative news more quickly into stock prices and improve price informativeness. However, there is a lack of consistent evidence about whether short sellers trade predominantly in anticipation of, or in response to, a public information release. To shed light on...

We develop a model of dealer-intermediated over-the-counter (OTC) markets in which customers choose their relationship dealers and dealers choose their levels of expertise, thereby determining the market structure and price informativeness jointly. We find that, in general, multiple equilibria...

A candidate for political office has private information about his and his rival's qualifications. A more informative positive (negative) campaign generates a more accurate public signal about his own (his rival's) qualifications, but costs more. A high type candidate has a comparative advantage...