The growth of financial markets has clearly outpaced the development of financial market regulations. With growing complexity in the world of finance and the resultant higher frequency of financial crises, all eyes have shifted toward the current inadequacy of financial regulation. This book...

When economic agents have diverse private information on the fundamentals of the economy, prices may serve as a poor aggregator of this private information. We examine the information value of prices in a monopolistic competition setting that has become standard in the New Keynesian...

Imperfect financial intermediation is a key bottleneck in economic development. Korea's unique Jeonse or housing repo contract channels funds directly from tenant/lenders to landlord/entrepreneurs, by-passing the banking system. In a housing repo, the landlord/entrepreneur puts up the house as...

Building on the previous literature on corporate diversification, institutional ownership and firm innovation, this study proposes an endogenous relationship between institutional ownership and corporate technological relatedness. Technological relatedness is the degree to which a set of...

This study examines the difference in corporate transparency of firms affiliated with business groups and unaffiliated firms in India. Based on previous studies we measured corporate transparency using equity analysts’ forecast error and dispersion. We find that firms affiliated with business...

Green consumers are those who seek to fulfill economic responsibility with their choices of environment-friendly products. Previous research found that it is not easy to identify green consumers by using traditional demographic or psychographic measurements due to the instability of moral...

We explore price dynamics in a `cash in the market' asset pricing model, where the price of an asset is the ratio of the amount of cash chasing the asset to the available supply of the asset. Traders base their current trading strategies on their beliefs about future cash inflows/outflows in the...

Do large investors increase the vulnerability of a country to speculative attacks in the foreign exchange markets? To address this issue, we build a model of currency crises where a single large investor and a continuum of small investors independently decide whether to attack a currency based...

Questions about transparency and the optimal way to communicate and commit to a monetary policy are both highly practical and fascinating from a research viewpoint. How far can transparency be taken? Is it better for a central bank to provide information about the future path for the interest...