This paper quantitatively examines the marginal value of corporate cash holdings (MVC)—that is, the change in shareholder value resulting from an additional unit of cash. In a frictionless market, the marginal value of one unit of cash equals one. However, in reality, various frictions and constraints can cause MVC to deviate from this benchmark. For instance, financing constraints may restrict investment ...

Traditional matching theory—applied in contexts such as college admissions, kidney exchange, and labor markets—assumes individuals make rational, preference-based choices.

This paper examines the design of rosters used to implement affirmative action in India’s public institutions.

This paper ​explores the impact of the “Verified Purchase” (VR) label on online review systems, with a focus on how platform-level policy changes influence both reviewer behavior and reader perception.

The PHBS Think Tank (北大汇丰智库) has released its latest economic report, offering an in-depth look at China’s macroeconomic performance in the first quarter of 2025. The findings point to a “strong start” for the year with Q1 GDP growth projected at 5.2%, driven by a stabilizing real estate sector, resilient momentum in emerging industries and a large scale of trade surplus. However, weak consumption ...

A recent study by Professor Seil Kim of the City University of New York and Professor Seungjoon Oh of Peking University HSBC Business School has been published in the September 2024 issue (Volume 29, Issue 3, pp. 2617–2649) of Review of Accounting Studies (RAST).

The Heston model, named after Steven L. Heston, is a representative continuous-time stochastic volatility (SV) model. It assumes that the volatility of an asset is evolving over time following the Cox-Ingersol-Ross (CIR) process rather than staying unchanged. While it is not the first SV model, it became popular in finance academia and industry thanks to its analytic property. For example, the option ...

In many countries, student loans are very important for financing higher education

In the new model, sellers benefit from learning-by-doing but buyers are critically important in the way that they are able to partly internalize the impacts of their purchase decisions on the dynamics of market structure evolution

Professor Cai Xiaoming analyzed how the surplus should be split, when an employed worker finds a new job, so that workers and firms receive their fair share