We analyze a publicly-traded firm's decision to stay public or go private, focusing on the stochastic nature of investor participation in the public market. The liquidity of public ownership is both a blessing and a curse: it facilitates trading and lowers the cost of capital, but it also...

Can institutional stock sales influence firm governance? Theory suggests that informed selling is likely to depress prices and disperse shareholding. Combined, both effects can influence firm governance by facilitating takeovers. I formalize this hypothesis and test its predictions using data on...

We analyze a publicly-traded firm's decision to stay public or go private, focusing on the stochastic nature of investor participation in the public market. The liquidity of public ownership is both a blessing and a curse: it facilitates trading and lowers the cost of capital, but it also...

We investigate the importance of reputation-based implicit contracts in firm financing in the context of Indian Business Groups. The group structure enables us to cleanly analyze the negative spillovers on other firms, triggered by a member firm defaulting on its debt obligations. We hypothesize...

We analyze an entrepreneur/manager's choice between private and public ownership. The manager needs decision-making autonomy to optimally manage the firm and thus has an endogenized control preference that is traded off against the higher cost of capital accompanying greater managerial autonomy....

We study the balance sheet of liquidity: the relation between the liquidity of the firm's assets and the liquidity of financial claims on the assets, thereby linking corporate finance decisions to stock liquidity. Our model highlights an ambiguous relationship. While greater asset liquidity...

Using 30,466 bank loan deals originated during 1990-2005, we examine why firms switch to new banks for their repeat loans instead of staying with their relationship banks. Employing a variety of measures to proxy for firms' informational transparency, we find that the soft information...

Using 30,466 bank loans originated during 1990-2006, we examine why firms switch to new banks for their repeat loans. Employing a variety of measures to proxy for firm-level asymmetric information, we find a non-monotonic relationship between the extent of information asymmetry and a firm's...

In this paper we analyze an entrepreneur/manager's choice between private and public ownership in a setting in which management needs some quot;elbow roomquot; or autonomy to optimally manage the firm. In public capital markets, the corporate governance regime in place exposes the firm to...

We predict a positive relationship between the liquidity of the firm's assets and the liquidity of its stock. This relationship depends on market expectations regarding the deployment of the firm's liquid assets. Thus our hypothesis links stock liquidity to managerial actions that change the...