Substantial work has been done during the past three decades to determine the theories of trade credit. But as observed by Frank and Maksimovic (1998), though the theories apply in specific circumstances, they are unable to explain the widespread use of trade credit and the empirical patterns of...

The Rosse-Panzar revenue test for competitive conditions in banking is based on observation of the impact on bank revenue of variation in factor input prices. We identify the implications for the H-statistic of misspecification bias in the revenue equation, arising when adjustment towards market...

We experimentally examine determinants of the transferability and durability of an assurer's flagship-service reputation for competence in a multi-service context. Economic and psychology theories agree that transferability will increase when a new service and a flagship service require...

Regulatory failure causing financial crises has occurred with great frequency in the last ten years in both advanced and emerging nations. Theories of regulation have failed to define and describe the meanings of deregulation, the range of regulatory models and their goals, the significance of...

Recent years have seen an explosion of financial innovation. Much of this innovation seeks to exploit inconsistencies in the regulatory environment, and one of the most popular techniques for doing so uses put-call parity. Nonetheless, regulatory arbitrage using put-call parity is not a new...

We will assess how governance and incentive problems contributed to Enron's rise and fall. A well-functioning capital market creates appropriate linkages of information, incentives, and governance between managers and investors. This process is supposed to be carried out through a network of...

This article demonstrates the primacy of economics over law in the formation of the Baltic Securities Market [BSM]. The proposition is vindicated by historical data and factual development of the BSM. Community level legislation in the financial services area accelerated in the later 1990's and...

This study employs the rolling bicorrelation statistic to measure the degree of stock price deviations from a random walk for the stock markets of 50 countries over the period 1995-2005. We find that stock markets in economies with low per capita GDP in general experience more persistent price...

This paper contributes to the finance-growth literature by examining the political economy origins of some of the most successful financial markets in Europe and Asia. It provides historical evidence from London, Amsterdam and Hong Kong that highlights the essential role played by the government...

Contracts for future delivery of commodities spread from Mesopotamia to Hellenistic Egypt and the Roman world. After the collapse of the Roman Empire, contracts for future delivery continued to be used in the Byzantine Empire in the eastern Mediterranean and they survived in canon law in western...