The Basel Committee on Banking Supervision is proposing to introduce, in 2006, new risk-based requirements for internationally active (and other significant) banks. These will replace the relatively risk-invariant requirements in the current Accord. This article examines the implications of this...

This paper analyses the effect of asymmetric information between a firm and its outside investors on the firms competitive position in a model where first-period competition is followed by a financing stage B la Myers and Majluf (1984). In our model, interim profit generated by the competition...

This paper reconsiders the strategic effect of debt under the assumption that quantity choices are made by managers whose objective is t avoid bankruptcy. The basic result is that quantity choices, which are strategic substitutes under profit maximization, may turn into strategic complements...

In a model that involves both moral hazard and hidden information on the part of the manger different remuneration schemes are discussed and the optimal contract between financial investor and manager is derived. Assuming the manager is risk-neutral and protected by limited liability, a benefit...