Papers
Uploaded: Oct 10, 2025
Leverage Dynamics and Liquidity Management without Commitment
We analyze a continuous-time model in which shareholders can adjust both debt and cash without commitment. We derive a closed-form solution for leverage adjustments, payout policies, and security prices. Consistent with empirical evidence, we find that 1) despite the presence...
Uploaded: Oct 10, 2025
Internalizing externalities in green bond: An adaptive pricing framework based on optimal carbon quota allocation
Green bond pricing is systematically distorted by the unpriced positive externalities inherent in green projects, leading to market failure and suboptimal investment. This market failure requires government intervention to internalize these externalities, thus correcting the pricing process. Carbon quota operated...
Uploaded: Oct 9, 2025
Payment Methods and Market Feedback in Mergers and Acquisitions
We document that all‑cash M\&A deals are substantially more likely to be withdrawn than non‑all‑cash deals (mixed-pay or all‑stock) and that withdrawal decisions are more sensitive to announcement‑period acquirer returns when financing is all‑cash. Motivated by these stylized facts, we...
Uploaded: Oct 9, 2025
Risk and Return in Asset Demand Systems
We develop a characteristic-based asset demand model in which cross-asset risk-return trade-offs vary with asset characteristics. The model relaxes the uniform substitution structure of the multinomial logit (MNL), accommodates large price elasticities, and enables recovery of investor-specific primitives, including alphas...
Uploaded: Oct 9, 2025
Cournot Competition, Informational Feedback, and Real Efficiency
We revisit how product market competition affects real efficiency by incorporating informational feedback from financial markets. While intensified competition reduces product market concentration, it lowers the value of speculators' proprietary information, discouraging information production and price discovery, with non-monotonic welfare...
Uploaded: Oct 9, 2025
Amusing Ourselves to Death? Education and Careers Under Digital Influence
The increasingly ubiquitous digital (social/self) media and influencer economy reshape how people allocate time and consumption, which, in turn, alter individual educational/career decisions, relative returns across occupations, and resource allocation in the society. Educational pursuits exhibit stage-switch externality, intensifying short-run...
