We propose a simple model of borrower optimism in competitive lending markets with asymmetric information. Borrowers in our model engage in self-deception to arrive at a belief that optimally trades off the anticipatory utility benefits and material costs of optimism. Lenders' contract design...

Wir analysieren das Gesetz zur Angemessenheit der Vorstandsvergütung. Ferner arbeiten wir einige aufgrund wirtschaftswissenschaftlicher Überlegungen zu erwartende Probleme heraus und prognostizieren mögliche ökonomische Auswirkungen des Gesetzes. Des Weiteren gehen wir im Rahmen einer...

This paper proposes a simple structural model to estimate the term structure of sovereign spreads and the implied default probability of a selected group of emerging countries, which accounts for more than 50% of the J. P. Morgan EMBIG index. The real exchange rate dynamics, modeled as a pure...

Amidst a sharp increase in household debt levels, many countries have substantially reformedtheir consumer bankruptcy regulations. I first classify the mechanisms triggered by current U.S.and European bankruptcy regulations and then evaluate these mechanisms within a hidden actionmodel. I...

In diesem Aufsatz untersuchen wir das Wachstum der Vorstandsvergütung in den vergangenen 15 Jahren und stellen uns die Frage, wie sich die Vorstandsvergütung in der Zukunft entwickeln könnte. Wir vermuten, dass die Einführung von Long-Term-Incentives (LTI) in Form von Aktienoptionsplänen,...

Investors and academics increasingly criticize that features of employee stock option (ESO) programs reflect rent-extraction by managers (managerial power view). The authors use a unique European dataset to investigate the relationship between the design of ESO programs and corporate governance...

Over the last few years, worldwide mergers and acquisitions (M&A) have increasedsharply both in terms of value and volume. This development has not only beendriven by corporate acquirers but also to an increasing extent by private equityinvestors. In this paper, we analyze differences in...

Mergers and acquisitions (M&As) constitute a disruption to the workingenvironment of the inventive labor force of the acquired company. If inventors wouldrespond with a decline of their patent productivity or departure from the firm thiscan be detrimental to the innovative process within the...

It has been widely suggested that since the early 1980s many diversified firms narrowed the scopeof their activities by refocusing on their core businesses, primarily through divestment activity.This study examines the extent and determinants of divestment across a large sample of UK firmsover...