This study examines IT firms' product innovation orientations using a unified framework that incorporates both the backward-looking perspectives and the forward-looking perspective of organizational decision making. Adopting a word-embedding technique, we analyze the text content of IT firms'...

We study how derivatives (with nonlinear payoffs) affect the liquidity of the underlying asset. In a rational expectations equilibrium, informed investors expect low conditional volatility and sell derivatives to the others. These derivative trades affect investors’ utility differently,...