Working Paper

01 February 2014

Capital-Market Effects of Securities Regulation: Prior Conditions, Implementation, and Enforcement

This paper examines the economic effects of changes in securities regulation. We analyze two key directives in the European Union (EU) that tightened market abuse and transparency regulation. All EU member states were required to...

Hans Christensen | Luzi Hail | Christian Leuz
01 August 2013

The Twilight Zone: OTC Regulatory Regimes and Market Quality

We analyze a comprehensive sample of more than 10,000 U.S. stocks in the OTC market. As little is known about this market, we first characterize OTC firms by trading venue and provide evidence on survival, success, frequency of venue...

Ulf Brüggemann | Aditya Kaul | Christian Leuz | Ingrid Werner
02 January 2020

Shareholder Illiquidity and Firm Behavior: Financial and Real Effects of the Personal Wealth Tax in Private Firms

We examine how negative liquidity shocks to households propagate to firms. We show that higher taxes on the home of private firms’ controlling shareholders are associated with higher dividend and salary payments from firms to...

Janis Berzins | Øyvind Bøhren | Bogdan Stacescu
10 March 2017

Activism, Strategic Trading, and Liquidity

We analyze dynamic trading by an activist investor who can expend costly effort to affect firm value. We obtain the equilibrium in closed form for a general activism technology, including both binary and continuous outcomes. Variation...

Vyacheslav Fos | PIerre Collin-Dufresne | Kerry Back | Tao Li | Alexander Ljungqvist
05 January 2021

The Value of "New" and "Old" Intermediation in Online Debt Crowdfunding

We study the welfare effects of the transition of online debt crowdfunding from the older “peer-to-peer” model to the “marketplace” model, where the crowdfunding platform sells diversified loan portfolios to investors. We...

Fabio Braggion | Alberto Manconi | Nicola Pavanini | Haikun Zhu