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We examine the effect of the presence of knowledgeable buyers (experts) in online markets where auctions with a hard … strategy for experts. We show that non-experts bid more aggressively as the proportion of experts increases. As a consequence … posted prices are available, we show that the presence of experts allows the sellers of high quality items to signal their …
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The 13f rule, which requires institutions to disclose mainly stock investments, has recently generated significant debate about disclosure costs. Some have expressed concern that copycatting (and frontrunning) activities from outside investors can harm disclosing investors' returns, while others...
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Shadow banking is a broad concept. A possible definition is that it comprises non-bank institutions which undertake bank-like activities. Another characteristic is that the sector is overall less regulated. Therefore there are still shortcomings in systematic collection of information of the sector.
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Is shareholder interest in corporate social responsibility driven by pecuniary motives (abnormal rates of return) or non-pecuniary ones (willingness to sacrifice returns to address various firm externalities)? To answer this question, we categorize the literature into seven tests: (1) costs of...
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Recent research shows that small trade imbalances are negatively associated with future stock returns. I find that this negative association only exists when stocks have initially been mispriced. In addition, mispricing occurs before the sentimental trading of small investors. In stocks with...
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Earning forecasts disclosed by financial analysts are known to be overly optimistic. Since an investor relies on their expertise, the question arises whether he would take analyst recommendations at face value or instead structure consultation with differently upward-biased analysts in a way...
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