We document that all‑cash M\&A deals are substantially more likely to be withdrawn than non‑all‑cash deals (mixed-pay or all‑stock) and that withdrawal decisions are more sensitive to announcement‑period acquirer returns when financing is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...

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...

This model concerns itself with how banks hedge their business risk, as composed of cash-flow risk and discount rate risk. In equilibrium, the two risks are intertwined as they are linked via the optimal hedging strategy. Ultimately, the bank stabilizes...

The vast majority of regulatory debates about the benefits of centralized trading assume that the set of securities designed by financial intermediaries is immune to the market structure in which trade occurs. In this paper, we consider a regulator who...

The variety of financial products available to firms has expanded rapidly in recent decades. We study how this expansion shapes capital allocation, combining granular data on security issuance with a model of strategic product choice. We present three key findings....

Exchange-Traded-Funds, smart beta products, and many index-based vehicles are composite securities (CSs) facilitating trading systematic factors through reducing investors' duplicated costs in trading multiple securities. We analytically show that CS designers in competition optimally select liquid underlying assets representative of...