This paper studies the rise and fall of “Mini” options that are especially catered to retail investors for popular but high-priced securities. Using transaction-level data, we find that transaction costs of Mini options are much higher than those of standard options and the difference cannot...

We augment a simple inventory model with new features of the post-crisis regulations to offer new predictions on the effects of post-crisis regulations on the over-the-counter markets. First, the increased capital requirements of Basel III lead to an overall increase in order rejection rates of...

This study investigates the effects of financial statement comparability on corporate expected default risk (EDF). Based on three different comparability measures, we find that financial statement comparability is negatively related to the EDF in the current and subsequent periods. This negative...