A recent development in the syndicated loan market has been the arrival of institutional investors, including hedge funds and private equity funds as lenders. This paper asks several related questions regarding institutional participation in the syndicated loan market, and presents the first...

A fundamental role of financial markets is to gather information on firms' investment opportunities, and so help guide investment decisions. In this paper we study the incentives for information production when prices perform this allocational role. If firms cancel planned investments following...

We study a demand and supply model of judicial discretion in corporate bankruptcy. On the supply side, we assume that bankruptcy courts may be biased for debtors or creditors, and subject to career concerns. On the demand side, we assume that debtors (and creditors) can engage in forum shopping...

Current literature has suggested that many factors affect a firm's capital structure decision and firms do not change their capital structure very often. Such a quot;stablequot; structure has prompted Lemmon, Roberts, and Zender (2007) to advocate the use of firm fixed effect in capital...

We study the possibility of trade for purely informational reasons. We depart from previous analyses (e.g. Grossman and Stiglitz 1980 and Milgrom and Stokey 1982) by allowing the amp;#64257;nal payoamp;#64256; of the asset being traded to depend on an action taken by its eventual owner. We characterize...