Papers

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A Theory of Socially Responsible Investment

Marcus Opp , Martin Oehmke   Mar 27,2023

Working Paper No.00093-00

We characterize the conditions under which a socially responsible (SR) fund induces firms to reduce externalities, even when profit-seeking capital... Read More

Siphoned Apart: A Portfolio Perspective on Order Flow Segmentation

Bart Yueshen Zhou, Joshua Mollner , Markus Baldauf   Apr 26,2023

Working Paper No.00094-00

We study liquidity provision in fragmented markets. Market makers intermediate heterogeneous order flows, trading off expected spread revenue against inventory... Read More

Principal Trading Arrangements: Optimality under Temporary and Permanent Price Impact

christoph frei, Joshua Mollner , Markus Baldauf   Apr 26,2023

Working Paper No.00095-00

We study the optimal execution problem in a principal-agent setting. A client (e.g., a pension fund, endowment, or other institution)... Read More

Competition and Information Leakage

Joshua Mollner , Markus Baldauf   Apr 26,2023

Working Paper No.00096-00

When seeking to trade in over-the-counter markets, institutional investors typically contact only a small number of potential counterparties and limit... Read More

Screening with Securities

Nicolas Figueroa, Nicolas Inostroza   Apr 26,2023

Working Paper No.00097-00

A liquidity-constrained asset owner designs an asset-backed security to raise funds from an informed liquidity supplier. Information insensitive securities reduce... Read More

Persuading Multiple Audiences: Strategic Complementarities and (Robust) Regulatory Disclosures

Nicolas Inostroza   Apr 26,2023

Working Paper No.00098-00

How much information about financial institutions' balance sheets should regulators pass on to the market? To minimize the probability of... Read More

Flow-Based Arbitrage Pricing Theory

Yu An   Apr 30,2023

Working Paper No.00099-00

I introduce a new approach, model, and definition for analyzing demand effects in asset pricing. My approach generalizes arbitrage pricing,... Read More

A Model of Influencer Economy

Siguang Li, Lin William Cong (叢林)   May 22,2023

Working Paper No.00101-00

With the rise of social media and streaming platforms, firms and brand-owners increasingly depend on influencers to attract consumers, who... Read More

Central Bank Digital Currency and Financial Stability

Peter Hoffmann,Agnese Leonello,Davide Porcellacchia, Toni Ahnert   Jun 16,2023

Working Paper No.00100-02

What is the effect of Central Bank Digital Currency (CBDC) on financial stability? We answer this question by studying a model... Read More

Valuing Data as an Asset

Laura Veldkamp   Jul 10,2023

Working Paper No.00102-00

In the twenty-first century, the most valuable firms in the world are valued primarily for their data. This makes data... Read More