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Corporate Social Responsibility and Firm Risk: Theory and Empirical Evidence

Albuquerque, Rui; Durnev, Artyom; Koskinen, Yrjö - C.E.P.R. Discussion Papers - 2013

This paper presents an industry equilibrium model where firms can choose to engage in corporate social responsibility (CSR) activities. We model CSR activities as an investment in customer loyalty and show that CSR decreases systematic risk and increases firm value. These effects are stronger...

Persistent link: https://www.econbiz.de/10011083749

Disagreement and Flexibility: A Theory of Optimal Security Issuance and Capital Structure

Boot, Arnoud W A; Thakor, Anjan - C.E.P.R. Discussion Papers - 2003

In this Paper we introduce flexibility as an economic concept and apply it to the firm’s security-issuance decisions and capital structure choice. Flexibility is the ability to make decisions that one thinks are best even when others disagree. Firms value flexibility because it allows...

Persistent link: https://www.econbiz.de/10005666532

Go Public or Stay Private: A Theory of Entrepreneurial Choice

Boot, Arnoud W A; Gopalan, Radhakrishnan; Thakor, Anjan - C.E.P.R. Discussion Papers - 2004

In this Paper we analyse an entrepreneur/manager’s choice between private and public ownership in a setting in which management needs some ‘elbow room’ or autonomy to manage the firm optimally. In public capital markets, the corporate governance regime in place exposes the firm to...

Persistent link: https://www.econbiz.de/10005136725

The Economic Value of Flexibility When There is Disagreement

Boot, Arnoud W A; Thakor, Anjan - C.E.P.R. Discussion Papers - 2003

We develop an economic theory of ‘flexibility’, which we interpret as the discretion or ability to make a decision that others disagree with. We show that flexibility is essentially an option for the decision-maker, and can be valued as such. The value of the flexibility option is decreasing...

Persistent link: https://www.econbiz.de/10005114187

Loan Sales and Screening Incentives

Bester, Helmut; Gehrig, Thomas; Stenbacka, Rune - C.E.P.R. Discussion Papers - 2012

We analyze the effect of loan sales on the intensity of costly screening. Loan sales strengthen screening incentives when screening primarily improves the bank’s ability to identify profitable loans and when banks retain most of those profitable loans. However, loan sales dampen screening...

Persistent link: https://www.econbiz.de/10011083726

Structural Uncertainty and Central Bank Conservatism: The Ignorant Should Keep Their Eyes Shut

Rosal, Joao Mauricio; Spagat, Michael - C.E.P.R. Discussion Papers - 2002

expectations-augmented Phillips curve and its reputation for toughness in fighting inflation. In an environment with an unknown …

Persistent link: https://www.econbiz.de/10005497983

Dynamic Incentive Contracts under Parameter Uncertainty

Jovanovic, Boyan; Prat, Julien - C.E.P.R. Discussion Papers - 2010

We analyze a long-term contracting problem involving common uncertainty about a parameter capturing the productivity of the relationship, and featuring a hidden action for the agent. We develop an approach that works for any utility function when the parameter and noise are normally distributed...

Persistent link: https://www.econbiz.de/10008784751

Constrained Discretion and Central Bank Transparency

Bianchi, Francesco; Melosi, Leonardo - C.E.P.R. Discussion Papers - 2014

central bank reputation and transparency. Monetary policy alternates between periods of active inflation stabilization and … pessimistic about future monetary policy and uncertainty gradually rises. Reputation determines the speed with which agents … found to benefit from strong reputation and large flexibility in responding to inflationary shocks. Increasing transparency …

Persistent link: https://www.econbiz.de/10011084074

Public and Private Learning from Prices, Strategic Substitutability and Complementarity, and Equilibrium Multiplicity

Manzano, Carolina; Vives, Xavier - C.E.P.R. Discussion Papers - 2010

We study a general static noisy rational expectations model, where investors have private information about asset payo¤s, with common and private components, and about their own exposure to an aggregate risk factor, and derive conditions for existence and uniqueness (or multiplicity) of...

Persistent link: https://www.econbiz.de/10008466347

Do Individual Investors Have Asymmetric Information Based On Work Experience?

Døskeland, Trond; Hvide, Hans K - C.E.P.R. Discussion Papers - 2009

Using a novel and unique dataset from Norway, we analyze whether professional proximity is associated with asymmetric information and abnormal returns. We find that individuals hold an excess weight in stocks that are professionally close. For example, after excluding holdings of own-company and...

Persistent link: https://www.econbiz.de/10005068286

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