We examine how analysts establish target prices for IPO firms and whether comparable firms used to support target prices are helpful in explaining IPO offer prices. From 1996 to 2000, the average target price is set at a level more than twice the offer price that was established less than a...

This paper examines how originator risk retention is related to the structure, pricing, and performance of securitized pools of residential mortgages created during the 2003-2007 period. We argue that originator risk retention is likely to vary positively with originator-sponsor and...

We provide evidence that a firm's exposure to industry downturns, what we refer to as industry risk, is an important factor affecting ex post recovery rates and ex ante bank loan pricing and the borrowing firms use of cash. The basic idea is that if it is costly to redeploy industry assets, then...

This paper reviews empirical evidence on the use of bank lines of credit as a source of corporate liquidity. Traditional explanation for lines of credit is that they provide insurance against liquidity shocks, in much the same as way hoarding cash does. However, recent empirical research...