's systematic equity risk and falls with the firm's unsystematic equity risk. Further, an increase in the firm's total equity risk …

by the firms at their financing stage for whether inflows of foreign debt may crowd out foreign equity or the other way …

sector and the valuation of claims to this capital stock in capital markets. We address the question of whether Indian equity … equity relative to GDP. Our framework can provide policy makers with a benchmark to identify deviations in equity markets … framework is well suited to examining secular movements in the value of equity relative to GDP, it is not suitable to address …

This paper models a firm's rollover risk generated by conflict of interest between debt and equity holders. When the … firm faces losses in rolling over its maturing debt, its equity holders are willing to absorb the losses only if the option …

Government guarantees of private debt deplete equity. The depletion is greatest during periods when the probability of … deplete equity directly, under the realistic assumption that the government is unable to enforce rules calling for marking … asset values to market. Less widely recognized is that guaranteed debt creates an incentive to pay equity out to owners …

financial intermediary. Intermediaries face a constraint on raising equity capital. When the constraint binds, so that … intermediaries' equity capital is scarce, risk premia rise to reflect the capital scarcity. We calibrate the model and show that it … effectiveness of a variety of central bank policies, including reducing intermediaries' borrowing costs, infusing equity capital …

We use a fully-specified neoclassical model augmented with costly external equity as a laboratory to study the … relations between stock returns and equity financing decisions. Simulations show that the model can simultaneously and in many … cases quantitatively reproduce: procyclical equity issuance; the negative relation between aggregate equity share and future …