We analyze dynamic trading by an activist investor who can expend costly effort to affect firm value. We obtain the equilibrium in closed form for a general activism technology, including both binary and continuous outcomes. Variation in parameters can produce either positive or negative...

Is greater trading liquidity good or bad for corporate governance? We address this question both theoretically and empirically. We solve a model consisting of an optimal IPO followed by a dynamic Kyle market in which the large investor's private information concerns her own plans for taking an...

This paper attempts to compare the efficiencies of different political institutions (with or without checks and balances) in extracting external “cheap talk” information. We find that a political institution with checks and balances can extract more credible information (measured by the...

Abstract Under the support of the remote sensing and geographical information system (GIS) techniques, we acquire the land use data in 1990 and 2008 regarding 6 inhabited islands, namely Longxue Island, Hengmen Island, Weiyuan Island, Oi'ao Island, Hengqin Island and Gaolan Island in Pearl River...

Rice productivity and sustainability are continually threatened by abiotic stresses, particularly in the era of global climate change. In severe cases, 100% yield loss can be experienced due solely to abiotic stresses, such as drought. The situation may become worse due to climate change that...

This paper is concerned with decentralized tracking-type games for large population multi-agent systems with mean-field coupling. The individual dynamics are described by stochastic discrete-time auto-regressive models with exogenous inputs (ARX models), and coupled by terms of the unknown...

China reformed value-added tax (VAT) by removing investment from the tax base in northeastern provinces in 2004, which is a “natural experiment” of its tax system. Using difference-in-differences method, this paper for the first time investigates the impact of VAT reform on China firms’...