Bond Default Matters in China: Evidence from Illiquidity Premium
This paper studies how market-wide credit risk affects the liquidity pricing in the bond market With the emergin

Haoyu Gao, Dapeng Hao, Dun Jia, Zhigang Qiu

Working Paper | No. 20220903 |

Keywords: Default events, credit spread, illiquidity premium, flight-to-liquidity

More Details
Non-Standard Choice in Matching Markets
We explore the possibility of designing matching mechanisms that can accommodate non-standard choice behavior We p

Gian Caspari, Manshu Khanna

Working Paper | No. 20220902 |

Keywords: Matching theory, market design, stability, college admissions market

More Details
Beyond Dividing the Pie: Multi-Issue Bargaining in the Laboratory
We design a laboratory experiment to study bargaining behavior when negotiations involve multiple issues Parties m

Olivier Bochet, Manshu Khanna, Simon Siegenthaler

Working Paper | No. 20220901 |

Keywords: Negotiation scope, asymmetric information, bundling, alternating offers, value creation

More Details
Price Rigidities and the Value of Public Information
AbstractFirms’ inflexibility in adjusting output prices to economic shocks exacerbates information asymmetry abo

Lifeng Gu, Jin Xie

Working Paper | No.20220708 |

Keywords: Nominal Rigidities, Information Frictions, Public Information, Capital-Market Efficiency

More Details
Punish One, Teach A Hundred: The Sobering Effect of Punishment on the Unpunished
Direct experience of a peer’s punishment might have a sobering effect above and beyond deterrence (informatio

Francesco D’Acunto, Michael Weber, Jin Xie

Working Paper | No. 20220707 |

Keywords: Corporate Governance, Cultural Finance, Information Transmission, Peer Effects, Reputational Sanctions, Related Party Transactions, Emerging Markets

More Details
Internal Capital Markets and the Transmission of Exchange-Rate Shocks
Liquidity-constrained large shareholders often reallocate capital within business groups to finance their own project

Kang Shi, Jin Xie, Juanyi (Jenny) Xu

Working Paper | No. 20220706 |

Keywords: Internal Capital Market, Corporate Governance, Collateral Constraint, Exchange Rates, Export Pricing

More Details
Regime Shifts in a Long-run Risks Model of U.S. Stock and Treasury Bond Markets
We study the joint determinants of stock and bond returns in a long-run risks model framework with regime shifts

Kai Li, Chenjie Xu

Working Paper | No. 20220705 |

Keywords: Regime shift, risks model, U S stock, treasury bond market

More Details
The Unmeasured Finance in Misallocation
This paper documents a large overestimation of measured finance misallocation (Whited and Zhao, 2021) when lease-induced debt is ignored among US manufacturing firms Appropriately accounting for leases on the liability side translates into a 5 5% real va

Weiwei Hu, Kai Li, Yiming Xu

Working Paper | No. 20220704 |

Keywords: Lease-induced debt, External finance, Misallocation of finance

More Details
Turbulent Business Cycles
Recessions are associated with sharp increases in turbulence that reshuffle firms’ productivity rankings To s

Ding Dong, heng Liu, Pengfei Wang

Working Paper | No. 20220703 |

Keywords: Turbulence,heterogeneous firms, financial frictions, reallocation, productivity, business cycles

More Details
Trust and Contracts: Empirical Evidence
Trust between parties should drive contract design: if parties were suspicious about each others’ reaction to

Francesco D’Acunto, Jin Xie, Jiaquan Yao

Working Paper | No.20220702 |

Keywords: Empirical Contract Theory, Incomplete Contracts, Cultural Economics, Beliefs and Choice, Personnel Economics, Organizational Economics, FinTech and Textual Analysis, Consulting, Management

More Details