Annual Conference

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Investment Finance

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May 2024

The Rise of Reddit: How Social Media Affects Belief Formation and Price Discovery

Danqi HU, Charles M. JONES, Siyang LI, Valerie ZHANG, Xiaoyan ZHANG
Using submission level data from social media platform Reddit, we rely on the theoretical framework of Pedersen (2022) to examine how social media affects belief formation, price discovery and trading dynamics. Consistent with the predictions on network belief spillover, we find that opinions of har...
Keywords: social media, belief formation, return prediction, short selling, retail investors
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Annual Conference

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Investment Finance

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May 2025

The Rise of Factor Investing: Asset Market Implications and “Passive” Security Design

Lin William CONG, Shiyang HUANG, Douglas XU
We model financial innovations such as Exchange-Traded Funds, smart beta products, and many index-based vehicles as composite securities (CSs) that facilitate trading the common factors in assets’ liquidation values. Through accessing a larger basket of assets in endogenously chosen proportions, C...
Keywords: Asset Pricing, ETFs, Indexing, Informational Efficiency, Security Design
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Webinar Series

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Capital Market Development: China and Asia

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Nov 2023

The Rise of E-Wallets and Buy-Now-Pay-Later: Payment Competition, Credit Expansion, and Consumer Behavior

Lin William CONG, Wenlong BIAN, Yang JI
The past decade has witnessed a phenomenal rise of digital wallets, which is further accelerated by the COVID-19 pandemic. Such e-wallets provide not only a conduit to external bank accounts but also internal payment accounts, including the popular BuyNow-Pay-Later (BNPL). We examine, for the first ...
Keywords: Cashless, Consumer Credit, FinTech, Financial Inclusion, Mobile Wallet
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Annual Conference

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Sustainable and Green Finance

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May 2023

The Rise of Corporate Social Responsibility: When Firms Set Personalized Prices for Network Goods

Yan XIONG, Liyan YANG
We propose a theory of corporate social responsibility by linking it to the firm’s product markets. The firm’s product exhibits network effects in the sense that the product’s value to each consumer increases with the number of consumers. Moreover, with the technology development, the firm can...
Keywords: Corporate social responsibility, network effect, personalized pricing, coordination
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Annual Conference

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Corporate Finance

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May 2022

The Reverse Bail-Out of Indebted Local Governments by Local Firms

Ben CHAROENWONG, Meng MIAO, Zhengyu ZUO
Using a dataset of over one million local government procurement contracts in China, we study whether the government’s indebtedness causes delays in payment which can be averse to suppliers’ financial conditions. Higher local government distress predicts an increase in accounts receivables for s...
Keywords: Public procurement auctions, sovereign risk, financial distress
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