This paper analyzes the effect of corporate governance on the payout policy when a firm has both agency problems and external financing constraints. We empirically test whether strong corporate governance would lead to higher payout to minimize agency problems (outcome hypothesis), or to lower...

This study presents the empirical evidence of Kyle (1985) that informed traders spread their orders over time to camouflage their information. Our proprietary data, which contain account numbers in the Korean options market, identify whether traders break up his or her order (split orders) or...

We investigate the roles of liquidity providers (LPs) and algorithmic traders (ATs) using a complete derivative warrant trading record of all investors in Korea. The main empirical findings indicate that LPs, the sole traders responsible for making market, do not trade primarily for liquidity...

It is frequently argued that foreign investors have extrapolative expectations due to their informational disadvantages. That is, absent other sources of information, foreigners revise their expectations on the future price of a domestic stock more in line with its current price change than do...