Discussion Papers

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...

The purpose of this paper is to test for the existence of inventory control and asymmetric information in stock market price quotes, and then quantify...

This paper examines two aspects of spot FX volatility. Using intra-daily quotation data on the Deutsche Mark/Dollar we simultaneously estimate the...

This paper examines the extent to which swings in stock prices can be related to variations in the discounted value of expected future dividends when...

This paper provides a theory of diversification and financial structure of banks. It shows that by diversifying the bank portfolio and financing it...

A Generalized Method of Moments estimation of the determinants of dollar/yen bid–ask spreads is undertaken. In particular, a long time-series of daily...

This article documents the fact that when debtors decide to default on their obligations too early, it is in the creditors’ collective interest, as...

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Empirical evidence suggests that capital market constraints prevent low-wealth individuals from setting up in business. This may be attributable to...

To what extend can optimal contracts and renegotiation designs alleviate equity market failure due to asymmetric information and transactions costs...

The paper reviews firms' motives for seeking publicly traded rather than privately held finance. Factors that play a role are the need to provide a...

Financially Intermediated and Stock Market consumption-investment allocations, with and without governmental interventions, are compared in a welfare...