In this study, we examine the importance and effects of social-based signals, i.e., signals generated by the community, when choosing a trader to copy in a mock-up social trading platform. Although the studies examining the effects of social influence in choosing a trader to copy and herding...

We study dynamic signaling when the informed party does not observe the signals generated by her actions. A forward-looking sender signals her type continuously over time to a myopic receiver who privately monitors her behavior; in turn, the receiver transmits his private inferences back through...

How do individuals process non-diagnostic information? According to Bayes’ Theorem, signals which do not carry relevant information about the objective state of the world are treated as if no signal occurred. This paper provides experimental evidence that individuals update their expectations...

Firms often discourage certain categories of individuals from buying their products, seemingly at odds with typical assumptions about profit maximization. This paper provides a potential rationale for such firm behavior: Consumers seek to signal that they have "desirable" ideological values to...

We study the dividend payouts of U.S. banks during the 2008 financial crisis. Using a difference-in-differences methodology, we shows that banks with higher share of short-term liabilities to total liabilities, which were thus more exposed to the rollover crisis that took place in 2008,...

This paper tests trade-off and pecking order predictions about stock repurchases and dividends by using a sample of publicly traded U.S. firms from 1983-2018. We find that stock repurchases have the characteristics of dynamic adjustment compared to cash dividends. Examination of the determinants...