When credit application experiences are examined, minority-owned small firms are not the discouraged borrowers that credit outcome studies generally suggest. This paper examines repeated application for credit by small firms. Univariate statistical analysis reveals that persistence is necessary...

I examine the impact of cross-venue latency on market quality using a model of informed trader competition in a fragmented market. As cross-venue latency decreases, liquidity and price discovery improve while the expected profits of informed traders decline. Moreover, a fall in the latency of...

Combining multi-year, firm-level surveys with country-level panel data for 53 countries, this paper explores the impact of bank competition on firms' access to finance. We find that low competition, as measured by high values of the Lerner index, diminishes firms' access to finance, while...

European equity trading mainly takes place in electronic order-driven systems. In those systems two groups of traders post their orders. One group makes liquidity by submitting limit orders while the other takes liquidity by submitting market orders. A high degree of liquidity is widely seen as...

In late 2012, two of the world's Systemically Important Banks (SIBs), Barclays and Deutsche Bank, announced new Corporate Strategies at almost the same time. These announcements provide a rare opportunity in business research to study the development and execution of ‘strategy' over time as...

The past couple of decades have seen a significant shift in assets from active to passive investment strategies. We examine the potential effects of this shift on financial stability through four different channels: (1) effects on investment funds’ liquidity transformation and redemption...

We analyze trading dynamics as successive high-frequency trading (HFT) firms begin to trade stocks in an equity market. Entrants compete with incumbents for volume, and there is crowding out. Earlier entry is associated with larger effects. After Passive HFT entry, incumbent spreads tighten....

The past couple of decades have seen a significant shift from active to passive investment strategies. We examine how this shift affects financial stability through its impacts on: (i) funds' liquidity and redemption risks, (ii) asset-market volatility, (iii) asset-management industry...

Two salient features of the competitive structure of the U.S. mutual fund industry are the large number of funds and the sizeable dispersion in the fees funds charge investors, even within narrow asset classes. Portfolio financial performance differences alone do not seem able to fully explain...

FinTech (financial technology) is asserted as a disruptive paradigm with digital technologies driving authentic innovation within the financial services industry. Much attention and hyperbole has been attributed to startup FinTech developers and the potential of applications for consumers of...