Short selling constraints predict negative stock returns at the monthly frequency, but is it a monthly phenomenon? We show that short selling constraints are persistent, lasting nine months on average, and therefore measured subsequent negative returns cannot be due primarily to an easing of...

We find that the positive impact of a firm’ own innovations on its own growth is similar in more and less competitive industries. In contrast, the negative impact of rival firms’ innovations on a firm’s growth (creative destruction) is significantly stronger in less competitive industries,...

We present a stochastic dynamic model of the adjustment of betting odds by bookmakers in a horse-racing betting market. We use optimal stopping theory in a two-horse benchmark model with both informed and noise punters. A costly learning process discloses what information the informed traders...