Discussion Papers

We propose a clientele-based model of the yield curve and optimal maturity structure of government debt. Clienteles are generations of agents at...

We study flows between investment funds and their effects on asset prices in a simple twoperiod version of Vayanos and Woolley (2010, VW). As in VW...

We propose a rational theory of momentum and reversal based on delegated portfolio management. Flows between investment funds are triggered by changes...

Banks operating under Value-at-Risk constraints give rise to a well-defined aggregate balance sheet capacity for the banking sector as a whole that...

We show that country characteristics explain most of the cross-sectional variation in bank board independence. In contrast, country characteristics...

This paper estimates the effect of corporate governance provisions on shareholder value and long-term outcomes in S&P1500 firms. We apply a regression...

Recent studies show that single-quarter institutional herding positively predicts short-term returns. Motivated by the theoretical herding literature...

This paper examines the relationship between executive cash compensation and company performance for a sample of large UK companies, focusing in...

We offer a rational expectations model of the dynamics of innovative industries. The fundamental value of innovations is uncertain and one must learn...

We propose a new continuous-time principal-agent model to study the optimal timing of stock-based incentives, when the effects of managerial actions...

We study the value of information in a competitive economy in which agents trade in asset markets to reallocate risk. We characterize the kinds of...

In a moral hazard setting with a performance additive in effort and a symmetrically distributed noise term, I show that compensation contracts which...

We investigate the effect of the ability of “non-traditional” funds to short-sell the equity of their debtors. This enables the funds to vote on the...

We examine whether a bidder can use tender o§er terms to signal post-takeover security benefits. Neither restricted bids nor cash-equity offers allow...

We survey theoretical developments in the literature on the limits of arbitrage. This literature investigates how costs faced by arbitrageurs can...

In principle, credit rating agencies are supposed to be impartial observers that bridge the gap between private information of issuers and the...