Research highlight
Informational Black Holes in Financial Markets
Journal of Finance, 78 (6), 3099-3140
European Venture Capital: myths and facts
We examine the determinants of success in venture capital transactions using the largest deallevel data set to date, with special emphasis on...
Informational Black Holes in Financial Markets
We study how efficient primary financial markets are in allocating capital when information about investment opportunities is dispersed across market...
A Theory of the Evolution of Derivatives Markets
This paper develops a theory of the opening and dynamic development of a futures market with competing exchanges. The optimal contract design involves...
Borrow Cheap, Buy High? The Determinants of Leverage and Pricing in Buyouts
Private equity sponsors pay special attention to designing capital structure, making buyouts an interesting setting for examining capital structure...
Investment banking careers: An equilibrium theory of overpaid jobs
We develop an optimal dynamic contracting theory of overpay for jobs in which moral hazard is a key concern, such as investment banking. Overpaying...