Motivated by cognitive theories verifying that investors have limited capacity to process information, we study the effects of information overload on stock market dynamics. We construct an information overload index using textual analysis tools on daily data from The New York Times since 1885....

We show that an expansive foreign monetary policy, where global banks are headquartered, increases the borrowing activity of their subsidiaries in local money markets in the countries of residence. We use a unique dataset of the Mexican money market. We report evidence that a limited flexibility...

We examine the effects on market quality of alternative execution priority rules in dark pools. A size execution priority rule in the dark pool improves (reduces) welfare and liquidity (picking-off risk) for the whole lit-dark market, relative to a time execution priority rule. Interestingly,...

We exploit textual analysis tools and study the effects of information overload—an excess level of information faced by decision-makers—on future stock market returns using daily data from the New York Times over eight decades. Information overload increases information and estimation risk,...

By employing a dynamic model with two limit order books, we show that fragmentation is associated with reduced competition among liquidity suppliers and lower picking-off risk of limit orders. Due to these countervailing channels, the impact of fragmentation on liquidity and welfare differs with...

We demonstrate that environmental policies can decrease the risks in energy generation for private investors when several renewable technologies are simultaneously triggered. This is because diverse renewable technologies can hedge the intermittent generation of other forms of renewable power....