We examine how negative liquidity shocks to households propagate to the firms they own. Our main tool for identification is a tax-driven shock to the...
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...
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...
This paper studies the effect of stock liquidity on blockholder governance. Conditional upon acquiring a stake, liquidity reduces the likelihood that...
This paper examines the economic effects of changes in securities regulation. We analyze two key directives in the European Union (EU) that tightened...