We study information production and diffusion resulting from dynamic interactions between different types of informed investors in financial markets. Using a theoretical framework that exploits the setting of the Q&A section of earnings conference calls, we predict that information production...

Open banking is a policy initiative that encourages lending market competition by allowing borrowers to freely share data with any financial institutions. We investigate resource allocation efficiency under open banking. In our setting, banks compete in common-value auctions where they obtain...

We develop a model to illustrate that employee compensation and product market decisions are related. When the product market is competitive and employees have low bargaining power, the unique equilibrium in our setting is for each firm's owners to offer equity-based compensation to their...

We propose a theory of corporate social responsibility by linking it to the characteristics of a firm's product market. The firm's product features a network property in the sense that the value of the product to each consumer increases with the number of consumers. Moreover, with the technology...

Many studies have suggested a positive and monotonic relationship between technological progress and wage income inequality since 1980s for industrialized economies. We examine this topic in the context of the Chinese economy where new generation technologies like automation, AI and...

We extend the theory and empirics in Chen, Hong, and Stein (2002) by assuming that investors subject to market sentiment hold a biased belief in the aggregate. With a dynamic multi-asset model, we predict that the breadth-return relationship can be either positive or negative depending on the...

If traders can obtain private information about the payoff and the supply of a stock then there can exist (i) complementarity in information acquisition and (ii) multiple equilibria in the financial and information markets. The additional dimension of supply information increases coordination...