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Information acquisition during a Dutch auction

Miettinen, Paavo - Suomen Pankki - 2010

In this paper we consider equilibrium behavior in a Dutch (descending price) auction where the bidders are uninformed of their valuations with probability 1-q and can acquire information about their valuation at a positive cost during the auction. We assume that the information acquisition...

Persistent link: https://www.econbiz.de/10008626080

Information acquisition during a Dutch auction

Miettinen, Paavo - Suomen Pankki - 2012

In this paper we consider equilibrium behavior in a Dutch (descending price) auction where the bidders are uninformed of their valuations with probability q and can acquire information about their valuation at a positive cost during the auction. We assume that the information acquisition...

Persistent link: https://www.econbiz.de/10009651894

Pre-emptive horizontal mergers: theory and evidence

Molnar, Jozsef - Suomen Pankki - 2007

This paper proposes and tests an explanation as to why rational managers seeking to maximize shareholder value can pursue value-decreasing mergers. It can be optimal to overpay for a target firm and decrease shareholder value if the loss is less than in an alternative where the merger is...

Persistent link: https://www.econbiz.de/10005190742

Central bank liquidity auction mechanism design and the interbank market

Ollikka, Kimmo; Tukiainen, Janne - Suomen Pankki - 2013

We study whether the mechanism design in the central bank liquidity auctions matters for the interbank money market … valuations in the liquidity auctions. The model captures the relevant features of how the European Central Bank sells liquidity …. We use simulations to compare discriminatory price, uniform price and Vickrey auctions to a posted price mechanism with …

Persistent link: https://www.econbiz.de/10010698833

A descriptive analysis of the Finnish treasury bond market 1991–1999

Keloharju, Matti; Malkamäki, Markku; Nyborg, Kjell G.; … - Suomen Pankki - 2002

This paper presents a descriptive analysis of the primary and secondary market for Finnish treasury bonds. The paper focuses on three issues. First, we report basic descriptive statistics such as auction volumes and secondary market yields and volumes. Second, we estimate the revenues earned by...

Persistent link: https://www.econbiz.de/10005423722

Why the marginal MRO rate exceeds the ECB policy rate?

Välimäki, Tuomas - Suomen Pankki - 2006

In the Eurosystem, banks’ interest rate expectations should no longer have resulted in a non-zero tender spread, the difference between marginal and minimum price for liquidity, when the ECB reformed its op-erational framework for monetary policy implementation in March 2004 so that the policy...

Persistent link: https://www.econbiz.de/10005648928

Leverage and growth: effect of stock options

Francis, Bill; Hasan, Iftekhar; Sharma, Zenu - Suomen Pankki - 2011

This paper investigates the potential effects of stock options on managers’ investment decisions and therefore on a firm’s growth or, alternatively, on its leverage-growth relationship. To structure the analysis addressing this issue, the paper utilizes a framework establishing a negative...

Persistent link: https://www.econbiz.de/10009358948

Debit card interchange fees generally lead to cash-promoting cross-subsidisation

Leinonen, Harry - Suomen Pankki - 2011

Cards and cash are competing payment instruments at point-of-sale. The twosided market platform theory, based on general benefit assumptions, supports the use of multilateral interchange fees for card payments as a means of promoting the use of cards. However, analysis of the issue from the...

Persistent link: https://www.econbiz.de/10008867447

Simultaneous monetary policy announcements and international stock markets response: an intraday analysis

Hussain, Syed Mujahid - Suomen Pankki - 2010

This paper investigates the return and volatility responses of major European and the US equity indices to monetary policy surprises using extensive intraday data on 5-minute price quotes along with a comprehensive dataset on monetary policy decisions and macroeconomic news. Our results show...

Persistent link: https://www.econbiz.de/10008626081

Cross-border bank M&As and risk: evidence from the bond market

Choi, Sungho; Francis, Bill B; Hasan, Iftekhar - Suomen Pankki - 2010

The impact of cross-border bank M&As on bank risk remains an open question. Though geographically diversifying bank M&As have the potential to reduce the risk of bank insolvency, they also have the potential to increase that risk due to the increase in risk-taking incentives for bank managers...

Persistent link: https://www.econbiz.de/10008626085