Category Archives: Stock Market

COVID-19 Market Protection: Close Down Stock Exchanges

By | March 25, 2020

Courtesy of Alexandra Andhov As COVID-19 continues to spread across continents, all economies begin to tremble and prepare for the worst. Companies, investors, and trading clients are turning to stock exchanges amid one of the most tumultuous periods in market history to borrow money, buy or sell assets, and limit losses in their holdings. Yet… Read More »

What is the Value of an Innovation? Theory and Evidence on the Stock Market’s Reaction to Innovation Announcements

By | February 4, 2020

Courtesy of Thomas Chemmanur, Dongmei Li, Kevin Tseng, and Yu Wang Recently, there has been considerable interest among economists in stock market-based measures of the value of corporate innovations. For example, in a recent paper, Kogan, Papanikolaou, Seru, and Stoffman (2017) develop a new measure of the economic value of a corporate innovation by making… Read More »

The Unintended Consequences of Deregulation: Equity Markets under the JOBS Act

By | January 2, 2020

Courtesy of Anantha Divakaruni and Howard Jones Eugene Schieffelin was a Shakespeare fan determined to introduce to the New World every species of bird appearing in the works of The Bard. In 1890 he released 100 of the European starlings mentioned in Henry VI in New York’s Central Park. Schieffelin’s starlings multiplied quickly and spread across… Read More »

Chinese Depositary Receipts: Attracting The Listing Of Tech Unicorn Companies Through Securities Law Reform

By | September 13, 2018

Courtesy of Lerong Lu and Ningyao Ye[1] Recent reforms to Chinese securities law are designed to entice local tech giants to list their shares in mainland China as opposed to overseas markets like Hong Kong or New York. One reform idea is modelled off a long-standing concept in the U.S. and Europe known as depositary… Read More »

If We Can, Does It Mean That We Should?  Volatility Linked ETPs and The Recent Crash

By | February 10, 2018

Market participants around the world are still reeling from this week’s wild ride that saw major U.S. indexes drop more than 5% and the Dow Jones Industrial Average swing by at least 1,000 points in all but one day. Early causal assessments pointed to the threat of rising interest rates and inflation, political uncertainty in… Read More »

China’s Unwelcome Stock Market Watchdog

By | May 23, 2017

Courtesy of Zuofa Wang 2016 was a wild ride for Chinese equity markets, with many institutional and retail investors suffering significant losses. Ironically, the market’s primary watchdog – the China Securities Regulatory Commission (CSRC) –  was the chief culprit for the market’s gyrations. This wasn’t the first time the CSRC intervened in China’s stock market… Read More »