We study the welfare properties of a market with pairwise meetings and asymmetric information, establishing an equivalence between asymptotically expost individually rational and asymptotically (ex-ante, interim and ex-post) efficient equilibrium sequences. <!--ID="" Correspondence to:O. Yosha-->

We study the welfare properties of a market with pairwise meetings and asymmetric information, establishing an equivalence between asymptotically ex-post individually rational and asymptotically (ex-ante, interim and ex-post) efficient equilibrium sequences.

Venture capital financing is characterized by extensive use ofconvertible securities and stage financing. In a model where a venture capitalist provides staged financing for a project, we illustrate an advantage of convertible debt (or warrants) over a mixture of debt and equity. Essentially,...

Venture capital financing is characterized by extensive use of convertible debt and stage financing. We show why convertible debt is better than a simple mixture of debt and equity in stage financing situations. When the venture capitalist retains the option to abandon the project, the...

Using standard Industrial Organization tools, we analyze the relation between competition in arm's length financial markets and the prevalence of close bank-firms ties. We show how the degree of competition between financial intermediaries affects the intensity of relationships between banks and...

We examine the impact of capital markets reform on patterns of corporate finance in Israel, focusing on the role of banks in the Israeli financial system, and in particular on whether their role has changed following a decade of liberalization. Our main finding is that, although external...

Using a unique newly constructed data set on Israeli IPO firms in the 1990s, we study costs and benefits of universal banking. The post-issue accounting profitability of firms underwritten by bank affiliated underwriters that were also borrowers from the same bank in the IPO year, is...

Venture capital financing is characterized by extensive use of convertible securities and stage financing. In a model where a venture capitalist provides staged financing for a project, we illustrate an advantage of convertible debt (or warrants) over a mixture of debt and equity. Essentially,...