The influential work of Genesove and Mayer (2001) uses loss aversion theory to explain several puzzling behaviors in the housing market. In this paper, we present an alternative theory, which does not require an asymmetric value function to observe the same "loss aversion" behavior....

Many asset markets are composed of three types of participants: professional investors who possess superior skills or knowledge, uninformed private investors, and liquidity investors. In this paper, we analyze the properties of asset price and trading volume when professional investors are able...

The US Green Building Council (USGBC) offers LEED certification for existing or new neighborhood developments that are in line with the new urbanism and smart growth concepts. We investigate whether LEED neighborhood certification 1) adds a premium to condo sales prices and 2) moderates the...

Recent work on stock splits have attempted to relate the information value associated with splits with that from dividends signaling. This paper extends this genre of research by evaluating the issue of dividend predictability using REIT data where the self-selection issue associated with...

Non-point source water pollution mainly comes from farmland chemical fertilizers which has become an obstacle of agricultural sustainability and ecological health. As a public policy tool for assessing global ecological crisis and environmental pollution, ecological compensation is important for...

We model a home seller's pricing decision under a generally defined prospect value function. We show a simple disposition effect is caused by reference dependence, but it only exists when the agent is risk neutral. Diminishing sensitivity will lead to a two-way disposition effect by generating a...

This study examines the association between the political corruption of a local government and the readability of firms' annual reports. Based on a sample of 12,742 firm-year observations (for 2,369 unique firms) during the 2006-2014 period and the Gunning Fog Index as the primary measure of...

The US Green Building Council offers LEED certification for existing and new neighborhood developments that meet sustainable urban development standards. Features of sustainable urban development have been found to positively affect residential sales prices. We investigate whether the intangible...

This paper adopts a search model to examine individual seller's pricing strategy under two market conditions: first, sellers have reference-dependent utility; second, the housing market is less heterogeneous, such as multi-unit residential market. Acknowledging the fact that units in the same...

Chief executive officers (CEOs) could use tax avoidance to reduce costs and hence increase firm profits. Nevertheless, the reputation of the firm could be harmed. Prior studies find that firms’ tax avoidance is associated with CEOs’ personality traits. We attempt to predict firms’...