Senior Fellows/Fellows

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Senior Fellows/Fellows

We study how bias in the social transmission process affects contagion of consumption beliefs and behavior. In the model, consumption is more salient than non-consumption. This visibility bias causes people to perceive that others are consuming heavily and have favorable information about future wea...
Keywords: Consumption behavior, Overconsumption, Visibility bias
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Little research exists on matching CEOs and directors. We find female independent directors (IDs) strengthen the benefits of overconfident (OC) CEOs. Female IDs reduce excess capital expenditures and less profitable acquisitions, increase R&D, and mitigate excessive risk taking. They impose grea...
Keywords: Female independent directors, Gender-diverse board, Directors’ death, Male independent directors, Board Independence, Overconfident CEOs, Firm performance, Over-investment, SOX, SOX compliant firms
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2022

We document characteristics-based return anomalies in a large cross-section (>4,000) of crypto assets. Cryptocurrency returns exhibit momentum in the largest-cap group, reversals in other size groups, and strong crypto value and network adoption premia, from which we derive two novel factors to a...
Keywords: Blockchain, Cryptocurrency, DeFi, Factor Models, Network Effect, Market Segmentation
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Senior Fellows/Fellows

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Senior Fellows/Fellows

The peer review process typically has multiple evaluators. Too often editors rely on the Union Heuristic, which requires authors to perform all requested tests and extensions suggested by referees and editors, with results confirming the paper’s message. The Union Heuristic is easy, but has dysfu...
Keywords: Editing, Editorial process, Peer review, Research, Academic publishing, Innovation, Turnaround time, Refereeing, Union Heuristic, Intersection Heuristic, Up-or-out
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Annual Conference

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Investment Finance, Senior Fellows/Fellows, Capital Market Development: China and Asia

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May 2022

Using comprehensive account-level data from 2016 to 2019, we examine retail investor trading behavior in the Chinese stock market. We separate millions of retail investors into five groups by their account sizes and document strong heterogeneity in their trading dynamics and performance. Retail inve...
Keywords: Retail investors, Chinese stock market, Return predictability, Information content
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