Discussion Papers

This paper shows that the current market infrastructure systemically prevents investors, both shareholders and bondholders, from exercising their...

We present a model of the maturity of a bank’s uninsured debt. The bank borrows funds and chooses afterwards the riskiness of its assets. This moral...

In this paper we study how the use of collateral is evolving under the influence of regulatory reform and changing market structure. We start with a...

In this paper we study how the use of collateral is evolving under the influence of regulatory reform and changing market structure. We start with a...

This paper evaluates the model risk of models used for forecasting systemic and market risk. Model risk, which is the potential for different models...

We provide a theoretical framework to study blockholder activism by funds who compete for investor flow. In our model, activists are intrinsically...

We investigate how business ties with portfolio firms influence mutual funds’ proxy voting using a comprehensive dataset spanning 2003 to 2011. In...

This paper contributes to a growing literature on the pitfalls of diversification by shedding light on a new mechanism under which, full risk...

We develop a dynamic model of liquidity provision, in which hedgers can trade multiple risky assets with arbitrageurs. We compute the equilibrium in...

This paper shows that product market competition has two opposing effects on asset returns. The first relates to the procyclical nature of the value...

We use the length of employment contracts to estimate CEO turnover probability and its effects on risk-taking. Protection against dismissal should...

This paper presents a policy proposal for building a new framework for gathering, measuring and disclosing financial risk information in the global...

The experience from the global financial crisis has raised serious concerns about the accuracy of standard risk measures as tools for the...

We study rights offerings using a sample of 8,238 rights offers announced during 1995-2008 in 69 countries. Although shareholders prefer having the...

We develop an equilibrium model of debt maturity choice of firms, in the presence of fixed issuance costs in primary debt markets, and an over-the...

We study a general equilibrium model in which firms choose their capital structure optimally, trading off the tax advantages of debt against the risk...