We analyze the profitability of government-owned banks' lending to their owners, using a unique data set of relatively homogeneous government-owned banks; the banks are all owned by similarly structured local governments in a single country. Making use of a natural experiment that altered the...

We analyse the pricing and allocation of unseasoned securities by means of mechanisms such as auctions or bookbuilding. Our analysis allows the pricing and allocation rules to be based not only on investors' bids, but also on information revealed through pre-issue trading of the securities in a...

The optimal organizational form and contracts are characterized for multiple money managers whose actions affect both expected returns and correlation of returns. Inducing diversification of effort to lower risk is in conflict with transfering risk to managers. Encouraging competition is the...

When facing hedge fund activists, target firms often fight back. Targets with agency problems and those confronting the threat of investor coordination frequently engage in hostile resistance by implementing governance changes associated with managerial entrenchment. The market negatively...