Security design, which broadly speaking deals with the issue of designing optimal
contractual mechanisms for overcoming various frictions between agents, is the subject of …

Market fragmentation, technical complexity and information asymmetry drive the regulation
of financial markets. We examine how government bodies develop and implement policy …

This study investigates how banks design financial products to cater to yield-seeking
investors. We focus on a large market of investment products targeted exclusively at …

This paper develops a theory that generates an equilibrium relationship between product
complexity, transparency, and trust in firms. Complexity, transparency, and the evolution of …

This paper explores private equity real estate fund performance and voluntary
environmental, social, and governance (ESG) disclosures. Using data from the National …

Among the ecosystem of decentralized financial services, yield farming is a complex
investment strategy with hidden downside risks providing opportunities for passively earning …

Conventional wisdom suggests that high-reputation banks will generally produce good
securities to maintain their long-run reputation. We show with a simple model that, when …

We survey a growing field studying aspects of finance that are potentially illegal, illicit, or
immoral. Some of the literature is investigative in nature to uncover malfeasance that is …

Using novel data on 1,240 credit agreements, we investigate sources of contractual
complexity in the leveraged loan market. While negative covenants are widespread, carve …

Recent complex financial products sold to households contradict the basic premise of
canonical innovation theories: Financial innovation benefits its adopters. In my 2006–2015 …