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Do Corporations Maximize their Own Value?
The first generic challenger to a branded drug tends to feature an investor base that has substantial stakes in

Martin Schmalz, Jin Xie

Working Paper | No. 20221101 |

Keywords: Ownership, corporate objective, corporate governance

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Financial Constraints, Cash Flow Timing Pattern, and Asset Prices
We show that firms collect more than 70% of their cash flow in the second half of the year We also find tha

Weiping Hu, Kai Li, Xiao Zhang*

Working Paper | No. 20220907 |

Keywords: Cash flows, Cash flow timing pattern, asset prices, equity financing costs

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Leasing as Capital Reallocation
In this paper, we argue that leasing is an important alternative way of capital reallocation We propose a broader measure of capital reallocation, which not only includes asset purchase and sale, but also considers lease Empirically, we show that the

Kai Li, Yiming Xu

Working Paper | No. 20220906 |

Keywords: Leased capital, collateral constraint, capital reallocation, cyclical pattern

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Faster Uniform Convergence Rates for Deconvolution Estimators From Repeated Measurements
Recently, Kurisu and Otsu (2022, Econometric Theory 38(1), 172-193) derived the uniform convergence rates for the

Liang Chen, Mingyuan Zhang

Working Paper | No. 20220905 |

Keywords: Nonparametric deconvolution, Kotlarski’s identity, rate of convergence

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Financial Market Structure and Risk Concentration
We propose a framework that jointly determines bilateral trading networks and risk allocation between banks Banks

Briana Chang, Shengxing Zhang

Working Paper | No. 20220904 |

Keywords: Network, Over-the-Counter Market, Regulations

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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

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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

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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

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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

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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

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