Recent economic crises like the 2008 financial tsunami has demonstrated a critical need for better understanding of the topologies and various economic, social, and technical mechanisms of the increasingly interconnected global financial system. Such a system largely relies on the...

We model and study the behavior of bankrupt stocks. We are interested in the dynamics of stocks and options, and in particular the cost of establishing positions with negative delta.This extends a model of Avellaneda and Lipkin which was used to model hard-to-borrow stocks. This model is a...

We investigate the effect of mandatory international financial reporting standards (IFRS) adoption on trade credit. We document that firms in countries that adopt IFRS receive more trade credit from their suppliers, consistent with improved financial reporting quality and comparability playing a...

An integral aspect of shareholder democracy is the shareholder proposal process, through which shareholders can pressure firms to make changes. We find that shareholders' uncertainty about the firm reduces their participation in voting on shareholder proposals and also reduces the likelihood of...

In this paper, we examine how the timeliness of loan loss recognition within the banking system affects borrowers' debt structure. Using data from 55 countries, we find that more timely loan loss recognition reduces firms' reliance on bank debt, consistent with firms relying less on bank debt...

Stein (2009) suggests that too much arbitrage capital exploiting underreaction can lead to overreaction, pushing price further away from fundamental value. I test this hypothesis by investigating the relation between changes in short interest ratio around earning announcement and the subsequent...

I attempt to address an important issue of the portfolio allocation literature -- none of the allocation rules developed in prior literature seems to consistently deliver good performance across different asset samples. For this purpose, I develop an approach that aggregates information from...