This paper examines how credit default swaps (CDS) affect the corporate investment of the referenced entities. We document a significant reduction in corporate investment after CDS trading, a result that is robust to alternative model specifications and a set of endogeneity tests. Our findings...

This paper presents a unique test of the effectiveness of technical analysis in different sentiment environments by focusing on its usage by perhaps the most sophisticated and astute investors, namely hedge fund managers. We document that during high-sentiment periods, hedge funds using...

By comparing the trading behavior of individual investors in different market conditions, this paper tests the theory that attribution bias - inflated confidence in one's own skill - creates overconfident traders. In a bull market, investors incorrectly attribute trading successes (luck) to...

Nitrogen-polluted wastewater posed great threat to the environment and human beings. Bismuth-based materials have presented high potentials for wastewater treatment. However, it suffers from unsatisfactory electrocatalytic efficiency, especially for nitrate-N removal. Considering the superior...

We provide plausibly causal evidence for the role of cultural and linguistic diversity in stock price crash risk. Using unique data from China, we show that firms headquartered in linguistically diverse areas, instrumented by the extent of geographical isolation, have higher stock price crash...

This paper analyzes the problem of matching two heterogeneous populations, e.g., men and women. If the payoff from a match exhibits complementarities, it is well known that absent any friction positive assortative matching is optimal (PAM). Coarse matching refers to a situation in which the...

In this paper, we consider the problem that a benevolent designer wants to provide a non-excludable public good with a fixed cost to agents with privately known valuations. Adopting utilitarian's point of view, the designer maximizes the ex-ante total utility of all agents. The impossibility...

In this paper, we consider the problem of allocating an indivisible good between two agents under incomplete information. We provide a characterization of mechanisms that maximize the sum of the expected utilities of the agents among all deterministic feasible strategy-proof mechanisms: Any...