Discussion Papers

Complex interactions between fundamentals and liquidity during unstable periods in financial markets are succinctly modeled with co-ordination games...

This paper solves for a firm’s optimal cash holding policy within a continuous time, contingent claims framework that has been extended to incorporate...

We study the role of prestige and social networks in the selection of outside directors, and the subsequent effect on firm value. Both prestige and...

We analyze the structure and evolution of the allocation of decision and control rights in venture capital contracts by using a sample of 464...

Recovery rates are negatively related to default probabilities (Altman et al., 2005). This paper proposes and estimates a model in which this...

When a firm has external debt and monitoring by shareholders is essential, managerial bonuses are shown to be an optimal solution. A small managerial...

For a large number of companies from different countries, we analyze how company corporate governance practices and country regulatory regimes...

We provide a test of the Monday effect in daily stock index returns. Unlike previous studies we define the Monday effect based on the stochastic...

A reduction in inflation can fuel run-ups in housing prices if people suffer from money illusion. For example, investors who decide whether to rent or...

In many countries, pension funds based on individual accounts have been affected by high operating costs. Contract theory helps to unravel the nature...

This paper analyzes the welfare effects of economic transparency in the conduct of monetary policy. We propose a model of monopolistic competition...

Within an asymmetric information set-up in which individuals differ in terms of their risk aversion and can choose whether or not to take preventative...

What determines the direction of spread of currency crises? We examine data on waves of currency crises in 1992, 1994, 1997, and 1998 to evaluate...

We propose a speculative attack model in which agents receive multiple public signals. It is characterised by its focus on an informational structure...

This paper examines the choice of tools for managing a firm’s operational risks: cash reserves, insurance contracts, and financial assets under an...

In this paper we compare overall as well as downside risk mea- sures with respect to the criteria of first and second order stochastic dominance...