Empirical and experimental papers nd that high-powered incentives may re-duce performance rather than improve it; a phenomenon referred to as "chokingunder pressure". We show that competition for high ability workers neverthelessleads rms to oer high bonus payments, thereby deliberately...

Based on German data between 1999 and 2007, we analyze the growth factors of SMEs andcontrast them with those of large firms. Differences show up both in balance sheet and employmentgrowth. While we conrm earlier results on inherent growth structures and the inuence of firm age,we derive several...

This paper examines why unsolicited ratings tend to be lower than solicited ratings. Bothself-selection among issuers and strategic conservatism of rating agencies may be reasonableexplanations. Analyses of default incidences of non-U.S. borrowers between January 1996and December 2006 show that...

This paper studies the effects that heterogeneous multiple bank financing hason a firm’s risk- and information-policy, particularly with respect to credit rene-gotiation efficiency. We find that a significant, yet limited, degree of relationshiplending enables firms with high asset specificity...

This work describes the legal structuring of a mortgage covered bond in accordance withthe regulations of paragraphs 791 cont. and 1184 cont. German Civil Code (BürgerlichesGesetzbuch). The work shows how to structure the share of common rights of the bondholders according to the regulations of...

This paper examines the financing structure of small and medium-sized enterprises (SMEs) inGermany and questions whether an equity gap – or, more generally, a financing gap - exists.Reviewing the literature and available data sources, we find that financing constraints seem toaffect, if at...

Since summer 2007 the Subprime credit crisis has been affecting the international financialmarkets. One of the consequences of the crisis was the collapse of the market for large-sizedleveraged buyout transactions in late 2007 and early 2008.The goal of this Working Paper is to examine to what...

Innovations in the finance industry are an important tool to enhance profitability and to increase anation's wealth. It, therefore, is not astonishing that there is much empirical work on innovations infinance. Most of the work however is concerned with the design of innovative products. The...

SMEs play a crucial role for European economies. The numbers show the high importance ofSMEs for national economies. Accordingly, it is no surprise that the regulatory frameworkSMEs are imbedded in is the subject of an important political discussion. In the discussion itis frequently mentioned...