We examine the effect of Top Management Team (TMT) professional finance experience on firm investment efficiency. Top managers with a career background in finance help reduce deviations of investment from the level warranted by firm fundamentals. Reductions in investment inefficiencies are...

Where does sentiment come from? We answer this question by introducing information manipulation into the financial market. In our model, an insider inflates the fundamental to boost the equilibrium market price. Because the manipulation cost is private information, the speculators treat the...

We introduce a name market into an overlapping generations model to address politician selection and political accountability when officeholders need not stand for re-election. We show that the name market could mitigate both issues. On the one hand, acquiring a good name screens good...

We introduce a name market into an overlapping generations model to address politician selection and political accountability when officeholders need not stand for re-election. We show that the name market could mitigate both issues. On the one hand, acquiring a good name screens good...

We explore information leadership in the financial market. We first study an endogenous network formation model in which traders link with each other before financial tradings. We show the only stable outcome is a star network in which every trader links to the same person. The centre of this...