Existing evidence shows a significant cross-sectional heterogeneity in firms’ informational environment. Smaller firms may not have any research analysts following them, thus operating in a more informationally opaque environment and, as a result, asymmetric information may allow firm insiders to profit from their superior information. But insiders may also trade not so much for profit-related reasons but to… Read More »Paper Spotlight: Corporate Transactions in Hard-to-Value Stocks

“Agency Costs and Strategic Speculation in the U.S. Stock Market” by Paolo Pasquariello

The February issue of RCFS has published! The Editor’s Choice paper is: “The Wisdom of Crowds in FinTech: Evidence from Initial Coin Offerings” Jongsub Lee, Tao Li, Donghwa Shin

Angel investors, who invest their personal wealth, are more common than venture-capital (VC) investors in seed-stage startups. Yet, we know little about how these angel investors – with a more limited network than VCs – develop their financial networks. In a forthcoming RCFS paper, “Seed-Stage Success and Growth of Angel Co-investment Networks,” Buvaneshwaran Venugopal and Vijay Yerramilli show that co-investment is widespread among angel investors: Analyzing hand-collected data from the… Read More »Paper Spotlight: Seed-Stage Success and Growth of Angel Co-investment Networks

“The Disparate Effect of Nudges on Minority Groups” by Maya Haran Rosen and Orly Sade

“Economic Significance in Corporate Finance” by Todd Mitton