In the variable supply auction considered here, the seller decides how many costumers with unit demand to serve after observing their bids. Bidders are uncertain about the seller's cost. We experimentally investigate whether a uniform or a discriminatory price auction is better for the seller in...

We examine an auction in which the seller determines the supply after observing the bids. We compare the uniform price and the discriminatory auction in a setting of supply uncertainty. Uncertainty is caused by the interplay of two factors: the seller's private information about marginal cost,...

This paper looks at the impact of corruption on stock market development, emphasizing the difference between developing and developed economies and the role corruption may play in preventing firms from listing. After setting up a theoretical model that explains why corruption's impact on stock...

We develop a dynamic two-stage trade-off model with refinancing when earnings are mean reverting, expanding previous theoretical work focusing on non-stationary dynamics. Our model predicts a negative relation between profitability and leverage ratios at refinancing, providing a possible...

Utilizing a news-based index of geopolitical risk (GPR) and using over 62 years of data, we find that GPR has a long-lasting negative impact on leverage. This result is robust to different model specifications, different proxies for leverage, several robustness tests, and survive after...

Contagion occurs when cross-market correlation increases because of a shock to one market. Identifying shocks as episodes of house price exuberance, we provide evidence for contagion effects among the largest metropolitan markets in the US. We find that changes in income, interest rates, and...