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Hysteresis in price efficiency and the economics of slow moving capital

James Dow , Jungsuk Han Francesco Sangiorgi   Jun 24,2024

Working Paper No.00140-00

Will arbitrage capital flow into markets experiencing shocks, mitigating adverse effects on price efficiency? Not necessarily. In a dynamic model... Read More

Block Trade Contracting

christoph frei, Markus Baldauf Joshua Mollner   Jun 12,2024

Working Paper No.00095-02

We study the optimal execution problem in a principal-agent setting. A client contracts to purchase from a dealer. The dealer... Read More

Published: Journal of Financial Economics, 2024, 160(), 103901-

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

Short-term debt overhang

Kostas Koufopoulos (York), Pavel Zryumov , Giulio Trigilia   Jul 11,2023

Working Paper No.00106-00

We show that short-term debt in a firm’s optimal capital structure reduces investment under asymmetric information. Investors’ interpretation of underinvestment... Read More

Blockchain Adoption in a Supply Chain with Manufacturer Market Power

Garud Iyengar,Jay Sethuraman,Wenjun Wang, Fahad Saleh   Oct 17,2023

Working Paper No.00079-01

We examine a supply chain with a single risk-averse manufacturer who purchases from suppliers and sells to consumers. Within this... Read More

Falling Interest Rates and Credit Reallocation: Lessons from General Equilibrium

Alberto Martin,Alejandro Van der Gothe,Luc Laeven, Victoria Vanasco , Vladimir Asriyan   Nov 15,2023

Working Paper No.00107-01

We show that in a canonical model with heterogeneous entrepreneurs, financial frictions, and an imperfectly elastic supply of capital, a... Read More

The Short-Termism Trap: Catering to Informed Investors with Limited Horizons

James Dow , Jungsuk Han Francesco Sangiorgi   Dec 15,2023

Working Paper No.00132-00

Does the stock market exert short-term pressure on listed firms, do they respond, and is this response value reducing? We... Read More

Published: Journal of Financial Economics, 2024, (), -

Equilibrium Staking Levels in a Proof-of-Stake Blockchain

Kose John,Thomas Rivera, Fahad Saleh   May 24,2022

Working Paper No.00076-00

We study the equilibrium level of staking in a Proof-of-Stake blockchain when investors have different trading horizons. We find that,... Read More

Economic Implications of Scaling Blockchains

Kose John,Thomas Rivera, Fahad Saleh   Nov 01,2022

Working Paper No.00075-01

We compare the economic implications of scaling blockchains under the Proof-of-Work (PoW) and Proof-of-Stake (PoS) consensus protocols. We study an... Read More

Incentive Constrained Risk Sharing, Segmentation, and Asset Pricing

Johan Hombert, Bruno Biais , Pierre-Olivier Weill   Mar 29,2021

Working Paper No.00070-00

Incentive problems make securities’ payoffs imperfectly pledgeable, limiting agents’ ability to issue liabilities. We analyze the equilibrium consequences of such... Read More