Discussion Papers

This article investigates the ability of regulatory agencies to keep firms to fixed budgets. The budget implemented at an interim date is always...

The paper develops a simple model of optimal corporate ownership structure in which costs and benefits of ownership concentration are analysed. The...

This paper provides an analytical solution for the impact of default risk on the valuation of realistically intricate claims on time dependent...

In this paper we construct a rational expectations model based on a Phillips curve that embodies persistence in inflation. As we assume that the...

This analysis extends the international evidence on initial public offerings (IPOs) to new issues in Germany between 1988 and 1995. Germany has been...

There have been three empirical studies examining the share price reaction following trades by directors of UK companies (King and Röell, 1988; Pope...

This paper takes a new look at the market for Index-Linked Debt in the U.K.. I begin by clarifying the theoretical links between the observed prices...

This paper discusses the Monte Carlo maximum likelihood method of estimating stochastic volatility (SV) models. The basic SV model can be expressed as...

In this paper we apply a regression test of the volatility of asset prices to a cross-section data set of US stock prices each year between 1932-71...

From the viewpoint of a company's controlling shareholder, the optimal ownership structure generally involves some measure of dispersion, to avoid...

A signalling model is developed which demonstrates how the offer price and the proportion of shares sold through an issue of ordinary shares when a...

This paper studies optimal financial contracts in a framework with asymmetric information. The key idea is that financial distress of a firm is not...

We consider the transitions, among intragenerational (autarkic) and intergenerational financing and liquidity risk-sharing mechanisms, in an...

This article investigates the issue of predation by a regulated firm. Since it has private information, a regulated firm obtains higher rents in case...