Discussion Papers

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...

We study an economy with segmented financial markets and strategic arbitrageurs who link these markets. We show that the equilibrium of the arbitraged...

In this paper, the authors apply a continuous time stochastic process model developed by Shiryaev and Zhutlukhin for optimal stopping of random price...

This paper estimates the effects of Say-on-Pay (SoP); a policy that increases shareholder "voice" by providing shareholders with a regular vote on...

We present a model of efficient contracting with endogenous matching and limited monitoring in which firms compete for CEOs. The model explains the...

This paper develops a theory of the opening and dynamic development of a futures market with competing exchanges. The optimal contract design involves...