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作者：Saar, Gideon; Sun, Jian; Yang, Ron; Zhu, Haoxiang
作者单位：Cornell University; Singapore Management University; Stanford University; Massachusetts Institute of Technology (MIT); National Bureau of Economic Research
摘要：Postcrisis bank regulations raised market-making costs for bank-affiliated dealers. We show that this can, somewhat surprisingly, improve overall investor welfare and reduce average transaction costs despite the increased cost of immediacy. Bank dealers in OTC markets optimize between two parallel trading mechanisms: market making and matchmaking. Bank regulations that increase market-making costs change the market structure by intensifying competitive pressure from nonbank dealers and incenti...
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作者：Grigoris, Fotis; Hu, Yunzhi; Segal, Gill
作者单位：Indiana University System; Indiana University Bloomington; IU Kelley School of Business; University of North Carolina; University of North Carolina Chapel Hill; University of North Carolina School of Medicine
摘要：We study the relation between trade credit, asset prices, and production-network linkages. Empirically, firms extending more trade credit earn 7.6% p.a. lower risk premiums and maintain longer relationships with customers. Using a production-based model, we quantitatively explain these novel facts. Trade credit reduces the departure probability of high-quality customers, thereby reducing firms' exposures to systematic costs incurred in finding new customers. The mechanism predicts that the agg...
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作者：Iyer, Ganesh; Manso, Gustavo
作者单位：University of California System; University of California Berkeley
摘要：We investigate the strategic role of a recommender who cares about accuracy and whose recommendations influence product quality. In the presence of such feedback effects, recommendations have a self-fulling property: the recommendation agent can select any firm that will end up being the firm with the best quality. This produces important inefficiencies that include (a) a lack of incentive to acquire valuable information, (b) a status quo bias, and (c) the avoidance of risky innovations. Monet...
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作者：Adelino, Manuel; Ferreira, Miguel A.; Giannetti, Mariassunta; Pires, Pedro
作者单位：Duke University; Center for Economic & Policy Research (CEPR); National Bureau of Economic Research; Universidade Nova de Lisboa; Stockholm School of Economics
摘要：We show that production networks are important for the transmission of unconventional monetary policy. Firms with bonds eligible for purchase under the European Central Bank's Corporate Sector Purchase Program act as financial intermediaries by extending additional trade credit to their customers. The increase in trade credit is pronounced from core countries to periphery countries and for financially constrained customers. Customers then increase investment and employment in response to the i...
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作者：Easley, David; O'Hara, Maureen
作者单位：Cornell University; Cornell University
摘要：We develop a model of psychological-games-played-on-a-network to demonstrate a role for endogenously determined, rationally chosen ethics. Our analysis produces sharp results about contagion of nonethical or ethical behavior and the possible equilibrium configurations of each type of behavior. We find, and quantify, critical densities for clusters of each type of behavior that determine everything about contagion. We introduce society as a third player to investigate ethical failures as extern...
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作者：Eisfeldt, Andrea L.; Herskovic, Bernard; Rajan, Sriram; Siriwardane, Emil
作者单位：University of California System; University of California Los Angeles; National Bureau of Economic Research; United States Department of the Treasury; Office of Financial Research; Harvard University
摘要：We study the effect of dealer exit on prices and quantities in a model of an over-the-counter market featuring a core-periphery network with bilateral trading costs. The model is calibrated using regulatory data on the entire U.S. credit default swap (CDS) market between 2010 and 2013. Prices depend crucially on the risk-bearing capacity of core dealers, yet unlike standard models featuring a dealer sector, we allow for heterogeneity in dealer risk-bearing capacity. This heterogeneity is quant...
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作者：Glebkin, Sergei; Yueshen, Bart Zhou; Shen, Ji
作者单位：INSEAD Business School; INSEAD Business School; Peking University
摘要：This paper studies simultaneous multilateral search (SMS) in over-the-counter markets: When searching, a customer simultaneously contacts several dealers and trades with the one offering the best quote. Higher search intensity (how often one can search) improves welfare, but higher search capacity (how many dealers one can contact) might be harmful. When the market is in distress, customers might inefficiently favor bilateral bargaining (BB) over SMS. Such a preference for BB speaks to the slu...
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作者：Gerken, William C.; Painter, Marcus O.
作者单位：University of Kentucky; Saint Louis University
摘要：Using satellite imagery of retail firms' parking lots to measure time-varying local firm-specific performance, we document that analysts incorporate local information into their forecasts. Analysts rely more on local signals when less firm-wide information is available. This incorporation of noisy local firm information has firm-level implications. Examining across industries, we find causal evidence that geographic concentration of analysts increases consensus forecast errors and decreases fi...
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作者：Cookson, J. Anthony; Engelberg, Joseph E.; Mullins, William
作者单位：University of Colorado System; University of Colorado Boulder; University of California System; University of California San Diego
摘要：We find evidence of selective exposure to confirmatory information among 400,000 users on the investor social network StockTwits. Self-described bulls are five times more likely to follow a user with a bullish view of the same stock than are self-described bears. Consequently, bulls see 62 more bullish messages and 24 fewer bearish messages than bears do over the same 50-day period. These echo chambers exist even among professional investors and are strongest for investors who trade on their b...
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作者：Pancost, N. Aaron; Robatto, Roberto
作者单位：University of Texas System; University of Texas Austin; University of Wisconsin System; University of Wisconsin Madison
摘要：We study capital requirement regulation in a dynamic quantitative model in which nonfinancial firms, as well as households, hold deposits. A novel general equilibrium channel that operates through firms deposits mitigates the cost of increasing capital requirements. In the calibrated model, (a) the optimal capital requirement is 7.3 percentage points higher than in a comparable model in which all the deposits are held by households, and (b) setting the capital requirement higher than the true ...
