Discussion Papers

This paper presents a policy proposal for building a new framework for gathering, measuring and disclosing financial risk information in the global...

The experience from the global financial crisis has raised serious concerns about the accuracy of standard risk measures as tools for the...

We study rights offerings using a sample of 8,238 rights offers announced during 1995-2008 in 69 countries. Although shareholders prefer having the...

We develop an equilibrium model of debt maturity choice of firms, in the presence of fixed issuance costs in primary debt markets, and an over-the...

We study a general equilibrium model in which firms choose their capital structure optimally, trading off the tax advantages of debt against the risk...

We study an economy with segmented financial markets and strategic arbitrageurs who link these markets. We show that the equilibrium of the arbitraged...

In this paper, the authors apply a continuous time stochastic process model developed by Shiryaev and Zhutlukhin for optimal stopping of random price...

This paper develops a theory of the opening and dynamic development of a futures market with competing exchanges. The optimal contract design involves...

This paper estimates the effects of Say-on-Pay (SoP); a policy that increases shareholder "voice" by providing shareholders with a regular vote on...

We present a model of efficient contracting with endogenous matching and limited monitoring in which firms compete for CEOs. The model explains the...

One of the most contentious issues raised during the recent crisis has been the potentially exacerbating role played by mark-to-market accounting...

We present a model of an economy with heterogeneous banks that may be funded with uninsured deposits and equity capital. Capital serves to ameliorate...

Financial market liquidity has become increasingly fragmented across multiple trading platforms. We propose an intuitive welfare-based market quality...

The availability of credit varies over the business cycle through shifts in the leverage of financial intermediaries. Empirically, we find that...

We study the feedback from hedging mortgage portfolios on the level and volatility of interest rates. We incorporate the supply shocks resulting from...

We propose a novel measure of arbitrage activity to examine whether arbitrageurs can have a destabilizing effect in the stock market. We apply our...