Lingtian Kong is a PhD Candidate at Rotterdam School of Management, Department of Finance. He is working on the PhD project “The interplay of finance and new technology: a two way street.” under the daily supervison of Dion Bongaerts and Mark Van Achter (promotor Marno Verbeek).
The Cost of Market Efficiency: a micro-structural approach
During my PhD residence, I plan to study three related issues in the interface between liquidity provision, microstructure and market efficiency. My PhD research will revolve around the question: by what mechanism can the financial industry outgrow its social usefulness, and how can the regulators alleviate such excess activity? In general, deep and efficient financial markets have been shown to improve economic performance by stimulating growth (Rajan et al 1998) and by allocating productive capital more efficiently (Wurgler 2000), ultimately generating benefits for the society as a whole.However, the 2008 financial crisis revealed that a financial sector that is “too active” can harm the economy as a whole. My research aims to determine how much the equilibrium activity deviates from the first best and what measures can be taken to align these two.
- low latency traders; liquidity creation; mutual funds; information asymmetry
- Time frame
- 2012 -
Work in Progress
D. Bongaerts, L. Kong & M. Van Achter (2018). Trading Speed Competition: Can the Arms Race Go Too Far?
Office: Mandeville Building T08-53
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