This paper offers a new approach, based on risk sharing, to endogenize the leverage of financial intermediaries. It endogenizes debt as the optimal contract for external financing, thereby capturing two features of leverage: debt serves to boost the return on equity, and equity provides...

Current intrusion detection systems are mostly for detecting external attacks, but the “Prism Door” and other similar events indicate that internal staff may bring greater harm to organizations in information security. Traditional insider threat detection methods only consider the audit...