In the United States, many employees can save for retirement by participating in Defined Contribution Plans (DCPs). We propose a tractable framework for calculating the employee’s subjective value of the participation option. The framework allows us to separate multiple benefits of...

This study investigates whether stock liquidity enhances or impedes firms’ digital transformation. It is of interest to various stakeholders since digitizing is crucial to a firm’s competitiveness and performance. The results indicate that stock liquidity negatively affects firms’ digital...

In the United States, many employees can save for retirement by participating in Defined Contribution Plans (DCPs). We propose a tractable framework for calculating the employee’s subjective value of the participation option. The framework allows us to separate multiple benefits of...

Ecosystem services provide the basic elements for global economic development. In the context of the deepening global integration process, countries and regions are increasingly connected, resulting in a series of cross-country, cross-regional, multi-scale socio-economic-environmental impacts,...

What drives some households to take risks and hold financial instruments while others don’t? We document the extent to which overconfidence plays a role in households’ reported financial risk aversion and their actual investment behavior, using data from the China Household Finance Survey....

Mutual fund managers' compensation packages often contain relative performance-dependent components such as year-end bonus. We examine the incentive effect of such compensation structure using a dynamic trading model with uncertain expected return and costly information. We show that relative...