[2] In Short Supply: Efficiency Implications of Rational Attention Allocation 

(with Ankit Kalda and Jan Schneemeier) 

(Management Science, forthcoming)

This paper examines the role of rational attention allocation in shaping private information acquisition, and its implications for price informativeness and real outcomes. Our setting exploits the listing of options on a stock as a source of variation in the relative value of acquiring information on its close industry peers. Consistent with the predictions of our theoretical model, we find that options listing on peer firms’ stocks is associated with declines in attention and price informativeness, and an increase in return volatility. These changes are accompanied by declines in investment-price sensitivity and profitability, indicating a deterioration of market feedback.

[3] Spillover Effects of Hiring Through Social Connections

This paper examines the spillover effect of hiring through social connections on bank clerks’ performance and its implications for commercial banks’ ability to attract deposits. Utilizing unique depositors' satisfaction survey data from a Chinese city commercial bank, this paper finds out that conflicts between advantaged and disadvantaged groups of bank clerks result in negative response from clerks with inferior status: they exert less efforts and obtain lower customer satisfaction scores when working with coworkers hired through social connections. Results suggest "homophily" could be one explanation as clerks dislike to work with colleagues hired through social connections.