Close Relationships between Banks and Firms: Is it Good or Bad?
This paper investigates the issues involved in cross-ownership between banks and firms. The idea is that congruity among the parties in control of the...
Sunk Costs and Competitiveness of European Banks after Deregulation
This paper investigates the determinants of the structure of the banking industry by fitting a monopolistic competition model to a sample of banks...
Informed Trading, Investment, and Welfare
This paper studies the welfare economics of informed trading in a stock market. We provide a model in which all agents are rational and trade either...
Should Speculators be Taxed?
A number of economists have supported the taxation of speculation in financial markets. We examine the welfare economics of such a tax in a model of...
Managers, Debt and Industry Equilibrium
This paper reconsiders the strategic effect of debt under the assumption that quantity choices are made by managers whose objective is to avoid...
Block Premia in Transfers of Corporate Control
This paper studies block trades and tender offers as alternative means for transferring corporate control in firms with a dominant minority...
Testing the Robustness of Long-Term Under-Performance of UK Initial Public Offerings
We re-examine the evidence on the long-term returns of IPOs in the UK using a new dataset of firms over the period 1985-95, in which we compare...
Caution and Conservatism in Monetary Policymaking
This paper shows that imperfect monetary control induces caution in the setting of monetary policy, leading to improved credibility at the expense of...
Post-IPO Directors' Sale and Reissuing Activity: An Empirical Test of IPO Signalling Models
Signalling models of IPO underpricing argue that owners of high-quality firms signal their high quality by underpricing shares sold at the IPO and...
Disclosure Requirements and Stock Exchange Listing Choice in an International Context
We use a rational expectations model to examine how public disclosure requirements affect listing decisions by rent-seeking corporate insiders, and...
Locally Minimizing the Credit Risk
The aim of this paper is the valuation and hedging of defaultable bonds and options on defaultable bonds. The Heath/Jarrow/Morton-framework is used to...
Co-ordinated Monetary and Foreign Exchange Intervention
When the monetary authorities wish to target the value of a foreign currency, they may coordinate their intervention in the money and foreign exchange...
Technological innovations: slumps and booms
This paper documents the delayed adoption of a major technological innovation: the adoption of the diesel locomotive in the US railway industry...
What Level of Fixed Costs Can Reconcile Asset Returns and Consumption Choices?
This paper defines a lower bound on the fixed cost that is required for observations on consumption choices to be consistent with data on asset...
