We examine the lead-lag relation between index futures and the underlying index under three types of short-selling restrictions on stocks in Hong Kong. Our results indicate that lifting short-selling restrictions can enhance the informational efficiency of the stock market relative to the index...

Recent lifting of short-sales constraints in Hong Kong provides an important opportunity to examine whether such restrictions affect the dynamic relationship between index futures and its underlying spot. The results show that the two prices have become more closely integrated without the...

We consider duopoly models where firms make decisions on capacity, production, and price under demand uncertainty. Capacity and price decisions are made, respectively, ex ante and ex post demand realizations. The interplay between the timings of demand realization and production decision endows...

Under a consignment contract with revenue sharing, a supplier decides on the retail price and delivery quantity for his product, and retains ownership of the goods; for each item sold, the retailer deducts a percentage from the selling price and remits the balance to the supplier. In this paper...

In a decentralized assembly supply chain, independent suppliers produce a set of complementary components from which an assembler assembles a final product and sells it to the market. In such a channel, several competitive forces interact with one another to affect the price and quantity...

A common phenomenon that occurs in any decentralized multilocation system is stock imbalance, whereby some locations have unsatisfied demands while others are overstocked. The system can be rebalanced by using a search process that is driven by either the customers or the retailers. In a...

This study examines whether insiders' incentives for private control benefits affect investment sensitivity to stock price. While Chen et al. (2007) link stock price informativeness to firms' learning from the stock market, we offer an alternative agency-cost based explanation. Using a total of...

Recent research suggests that insiders’ incentives for capturing cash flows affect price formation process in which insiders are inclined to withhold good news and to accelerate the release of bad news (Jin and Myers, 2006). We investigate whether insiders’ incentives for private control...