monitor managers and make sure they exert the effort necessary to reduce default risk. This gives rise to moral hazard. In …. If these become too high, investors give up on incentives, and default risk rises. Thus, moral hazard gives rise to … endogenous crises and fat tails in the distribution of aggregate default risk. Our model fits the stylized facts of the MBS …

, we study the implications of the interaction between incentive compatibility and participation constraints for risk …

I investigate whether information quality affects the cost of equity capital through liquidity risk. Liquidity risk is … the importance of this systematic risk. I find that higher information quality is associated with lower liquidity risk and … association between information quality and liquidity risk is stronger in times of large shocks to market liquidity …