liquidity, price efficiency and crash risk, all of which capture aspects of market quality, differ across OTC venues and firms …

reduced firm risk, consistent with a decrease in debt-equity conflicts of interest. The changes are isolated to firms …

little credit risk. The borrowing in this model takes the form of a repurchase agreement ("repo") or asset-backed commercial …" (the information state gets worse), or "no news" (the information state remains the same). When rollover risk is high … during the crisis for asset-backed securities with low credit risk once bad news about the underlying cash flows arrived. …

bankruptcy and to curb the firm's risk taking outside bankruptcy. We analyze the role of such implicit guarantees in the context … expansion in risk-taking opportunities of money market funds during the period of August 2007 to August 2008. We find that a … financial institutions with higher equity take on less risk than those sponsored by financial institutions with lower equity …

and risk aversion of three. The cost of illiquidity can easily exceed 10% if the hedge fund manager can arbitrarily …

bankruptcy reduce corporate risk-taking. In cross-country analysis, we find that stronger creditor rights induce greater … performance. In countries with strong creditor rights, firms also have lower cash flow risk and lower leverage, and there is …