To find forecasts that are closest to Greenbook forecast from the Survey of Professional Forecasters, this paper looks for SPF cross-sectional percentile forecasts that are not encompassed by Greenbook forecast under Greenbook's loss preference, which exhibits time-varying asymmetry. To evaluate...

This paper examines forecast rationality of the Greenbook and the Survey of Professional Forecasters (SPF) under asymmetric loss functions, using the method proposed by Elliott, Komunjer and Timmermann (2005) with a rolling window strategy. Over rolling periods, the degree and direction of...

Purpose: This paper aims to examine the effectiveness of control mechanisms in promoting collaborative performance by exploring the moderating effects of formal institutions (government support and legal enforcement in this study) and informal ties (business ties in this study) on the...

We study how institutional investors utilize potentially biased information by analyzing the effect of IPO underwriters' earnings forecasts on investors' bidding behaviors in Chinese IPO auctions. Despite the presence of upward biases in underwriters' earnings forecasts, we nd that investors'...

We develop a credit-risk model to study the informational role of investment in bankruptcy. Firms' investment decisions carry information about their asset quality, thereby mitigating informational frictions when firms enter bankruptcy. An increase in aggregate investment can reduce the...

We develop a credit-risk model to study how information acquisition affects the liquidity in a secondary bond market. In our model, the creditors of a firm can acquire costly information about the firm and exploit the information advantage by selling their bonds to uninformed buyers. When a...