model suggests that off-balance sheet commitments have little effect on bankruptcy risk, and induce banks to hold more …

experimentally the behavioral forces stipulated in their theory. The evidence confirms the model's prediction that there is a …

We derive the effect of plausible deniability on asset risk premia in a dynamic setting with correlated firm values …, systematic risk, and risk-averse investors. Firms optimally exercise American disclosure options, which are more valuable due to … nondisclosing firms. Risk premia rise (and average prices fall) prior to disclosures, because investors make inferences about …

In absence of insurance contracts to share risk, public information is a double-edged sword. On the one hand, it … empowers self-insurance as agents better react to shocks, reducing risk. On the other hand, it weakens market-insurance as … common knowledge of shocks restricts trading risk. We embody these two faces of information in a single general …