Since the electricity market reforms of 2002, two large-scale power shortages, one occurring in 2004 and one in 2011, exerted a tremendous impact on the economic development of China and also gave rise to a fierce discussion regarding electricity system reforms. In this paper, the background and...

In this paper, “agency” refers to the relationship between a principal, such as a business owner or owners, and his or her agent, such as a manager.Our empirical results support the John-Kedia theory, which recommends treating optimal corporate governance as a system within which the...

We study the efficacy of forbearance using a real options approach. Our model endogenizes moral hazard embedded in credit risk undertaken by the bank. The bank's interest rate risk is modeled as duration mismatch. Other modeling improvements over previous studies include such features as...

A large number of mutual savings and loan associations (MSLs) converted their charters into stock ownership between the mid-1980s to mid-1990s. Because these conversions tended to generate windfall profits for insiders and investors, new conversion guidelines and regulations were proposed by the...

Variations of a reduced-form equation for inflation determination are specified with ARCH processes for 34 countries. Results of testing for and estimation of the ARCH specifications show significant results in nearly half, but in five of those, tests suggest the presence of an AR(4) process...

We examine the relationship between the small business loan guarantee and the agency problem of small firms. We then recommend financial instruments or financial contracts that can minimize of eliminate the moral hazard problem.