does not need a high liquidity reserve, but as conditions deteriorate, it will target higher reserve. In very poor … conditions, the firm will declare bankruptcy, usually after it has depleted its liquidity reserve. Our model can predict … liquidity holdings, leverage ratios, yield spreads, expected default probabilities, expected loss given default and equity …

This Paper investigates the impact of ownership patterns on the way the firm is monitored, on the liquidity of its … selection discount required by less informed investors to trade, reducing the firm’s liquidity. Both effects are properly … prices, but the lower liquidity induced by their presence tends to reduce prices. …

between shareholders and creditors regarding the firm's liquidity policy and show that bond covenants that establish an …

. Moreover, the analysis reveals that liquidity costs considerably influence the level of block premia in Poland. Finally, the …

This Paper studies equilibrium asset pricing with liquidity risk (the risk arising from unpredictable changes in … liquidity over time). It is shown that the required return on a security depends on its expected illiquidity, the covariances of … its own return, illiquidity with market return, and market illiquidity. This gives rise to a liquidity-adjusted capital …