Retail trading flow is segregated from non-retail flow in U.S. equities, consistent with market segmentation. We model theoretically two methods of executing segregated retail trades: a) broker's routing, whereby brokers evaluate and allocate orders based on each market maker's aggregate...

The role of contracting institutions, particularly the role of contract enforcement efficiency in shaping corporate vertical boundaries, has been largely overlooked. Using a quasi-natural experiment of “Announcement of Dishonest Persons” in China, we find that improved contract enforcement...

Using the exogenous shock of the COVID-19 pandemic, we examine whether vertical integration creates value for firms when facing increasing uncertainty. Using cross-sectional data during the outbreak of the COVID-19 pandemic, we find that there is a significant and positive correlation between...

By manually collecting data on Internet-based rumors concerning COVID-19, we investigate the market reactions to the spread of such rumors and the government's refutation of them. We find that frightening (reassuring) rumors have a negative (positive) impact on investors. The refutation of...