Proprietary Information, Financial Intermediation and Research Incentives
We contrast equilibria in loan markets under bilateral bank-borrower relationships, in which proprietary technological knowledge of borrowers is not r...
Large Shareholders, Private Benefits of Control and Optimal Schemes for Privatization
We analyze optimal schemes for privatization in a transitional economy. In many cases, established Western firms are good candidates for large...
The Determinants of Realignment Expectations under the EMS: Some Empirical Regularities
The stability of the EMS depends crucially on realignment expectations of the market participants. In this paper we discuss how to measure such...
Auditor Independence, Incomplete Contracts and the Role of Legal Liability
We develop a model in which there is conflict of interest between the management and the shareholders of an organization. Incompleteness of contracts...
Round-the-clock Trading: Evidence from UK Cross-Listed Securities
This paper uses transactions data from the London Stock Exchange to characterize the intraday pattern of security prices and trading volume for...
Overbidding in Takeover Contests
Within the context of takeovers this paper shows that in private auctions the optimal individually rational strategy for a bidder with partial...
The Arbitrage Pricing Theory is not Robust 1: Variance Matrices and Portfolio Theory in Pictures
The assumption of the Arbitrage Pricing Theory can be formulated in terms of the variance matrix V of the returns on a finite or infinite set of asset...
Is One Share/One Vote Optimal?
In a tender offer by a value increasing raider, voting shareholders face a free-rider problem. However, when they are not atomistic, they do not...
Information Efficiency and Welfare in the Stock Market
In an overlapping generations model each generation invests a given budget into a portfolio consisting of risky shares and a riskless asset. In each...
Problems of Banking Regulation: An EC Perspective
This article seeks critically to assess the approach of the EC Single Market to banking regulation in the light of the key economic issues in this...
Inter-Dealer-Trading
Inter-Dealer trading is an important but rarely discussed aspect of many financial markets. This paper allows for trading between market makers on the...
Debt Inflation: Theory and Evidence
Presidential Lecture delivered by Mervyn King (Bank of England and London School of Economics), to the European Economic Association on 27th August...
Volatility and Links between National Stock Markets
The empirical objective of this study is to account for the time-variation in the covariances between stock markets, and to assess the extent of...