Scholarly Works - Journal articles
Journal article
Review of Financial Studies
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August 1, 2020
We construct and analyze the equilibrium of a model of delegated portfolio management in which money managers signal their investment skills via fund transparency. To lower the costs of transparency, high-skill managers rely on their performance to separat ...
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Journal article
Review of Financial Studies
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September 1, 2013
We develop a theoretical model to analyze the effects of libertarian paternalism on information production and financial decision making. Individuals in our model appreciate the information content of the recommendations made by a social planner. This affe ...
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Journal article
Journal of Finance
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October 1, 2011
A risk-averse manager's overconfidence makes him less conservative. As a result, it is cheaper for firms to motivate him to pursue valuable risky projects. When compensation endogenously adjusts to reflect outside opportunities, moderate levels of overconf ...
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Journal article
Review of Finance
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April 1, 2011
We investigate an IPO security design problem when information asymmetries across investors lead to a winner's curse. Firms that are riskier in down markets can lower the cost of going public by using unit IPOs, in which equity and warrants are combined in ...
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Journal article
Journal of Finance
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April 1, 2009
We analyze how the work ethic of managers impacts a firm's employment contracts, riskiness, growth potential, and organizational structure. Flat contracts are optimal for diligent managers because they reduce risk-sharing costs, but they attract egoistic a ...
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Journal article
Review of Finance
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December 1, 2007
We study a firm in which the marginal productivity of agents effort increases with the effort of others. We show that the presence of an agent who overestimates his marginal productivity may make all agents better off, including the biased agent himself. T ...
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Journal article
Review of Financial Studies
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December 1, 2005
Because a money manager learns more about her skill from her management experience than outsiders can learn from her realized returns, she expects inefficiency in future contracts that condition exclusively on realized returns. A fund family that learns wh ...
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Journal article
Review of Financial Studies
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January 1, 2003
When a collection of specialists organize as an exchange, each can reap net private benefits at the expense of the exchange by quoting a privately optimal pricing schedule. Coordination makes all specialists and customers better off, but requires a system ...
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Journal article
Review of Financial Studies
·
2003
When a collection of specialists organize as an exchange, each can reap net private benefits at the expense of the exchange by quoting a privately optimal pricing schedule. Coordination makes all specialists and customers better off, but requires a system ...
Cite
Journal article
Journal of Finance
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January 1, 2001
The idea that extreme trading activity contains information about the future evolution of stock prices is investigated. We find that stocks experiencing unusually high (low) trading volume over a day or a week tend to appreciate (depreciate) over the cours ...
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Journal article
Review of Financial Studies
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January 1, 2001
We develop a multiperiod market model describing both the process by which traders learn about their ability and how a bias in this learning can create overconfident traders. A trader in our model initially does not know his own ability. He infers this abi ...
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