In this paper I propose and test a model of option exchange design when investors choose among several exchange-traded options based on a trade-off between standardization costs and liquidity/transaction costs. The model employs a spatial economics approach to provide results for the existence...

Recent research shows that mood and attention may affect investors' choices. In this paper we examine whether companies can create such mood and attention effects through advertising. We choose a natural experiment by investigating price reactions and trading activity for firms employing TV...

We present and test an infinite-horizon, continuous-time model of a firm that can dynamically adjust the use of risk management instruments whose purpose is to reduce product price uncertainty thereby mitigating financial distress losses and reducing taxes. The dynamic setting relaxes several...