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How do lenders use their reputation when participating in syndicated loans? I address this question by focusing on … syndicate composition with respect to participants' reputation and its impact on loan spreads. I find that lender reputation … market finance features, rather than bank finance. However I find no evidence that lenders use their reputation and the …
Persistent link: https://www.econbiz.de/10011976949
On October 26, 2008, Porsche announced a largely unexpected domination plan for Volkswagen. The resulting short squeeze in Volkswagen's stock briefly made it the most valuable listed company in the world. We argue that this was a manipulation designed to save Porsche from insolvency and the...
Persistent link: https://www.econbiz.de/10011875647
We present a novel methodology to determine the fundamental value of firms in the social networking sector, motivated by recent realized IPOs and by reports that suggest sky-high valuations of firms such as facebook, Groupon, LinkedIn Corp., Pandora Media Inc, Twitter, Zynga. Our valuation of...
Persistent link: https://www.econbiz.de/10009561752
In this paper we consider an alternative dividend payment strategy in risk theory, where the dividend rate can never … dividend payment strategies of barrier and threshold type. We study the case where once during the lifetime of the risk process … the dividend rate can be increased and derive corresponding formulae for the resulting expected discounted dividend …
Persistent link: https://www.econbiz.de/10011899803
The optimal investment-dividend policy of a financially constrained firm whose earnings are subject to additive shocks …
Persistent link: https://www.econbiz.de/10008797762
We develop a model in which a startup firm issues tokens to finance a digital platform, which creates agency conflicts between platform developers and outsiders. We show that token financing is generally preferred to equity financing, unless the platform expects strong cash flows or faces severe...
Persistent link: https://www.econbiz.de/10012179618
We study the existence of equilibria with endogenously complete markets in a continuous-time, heterogenous agents economy driven by a multidimensional diffusion process. Our main results show that if prices are real analytic as functions of time and the state variables of the model then a...
Persistent link: https://www.econbiz.de/10003971255
testing method, which does not rely on distributional assumptions to aggregate the information from the time series of price-dividend … ratios and dividend growth. We find evidence of return predictability, but no apparent evidence of dividend growth …
Persistent link: https://www.econbiz.de/10009684124
We develop a dynamic model of banking to assess the effects of liquidity and leverage requirements on banks' insolvency risk. In this model, banks face taxation, flotation costs of securities, and default costs and maximize shareholder value by making their financing, liquid asset holdings, and...
Persistent link: https://www.econbiz.de/10011293576
This paper combines the concept of market sidedness with excess option demand (changes in open interest) to solve the empirical challenge of separating directional from uninformed trading motives in widely available, unsigned options data. Our measure of options market sidedness persistently...
Persistent link: https://www.econbiz.de/10009684072