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I propose a theory of information production and learning in credit markets in which the incentives to engage in … excessive optimism that fueled booms preceding financial crises and the slow recoveries that followed. In my theory, information …
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Abstract: Im Mittelpunkt des Werkes steht die Suche nach einer angemessenen Erklärung des Underpricing von Aktienerstemissionen. Eine ausführliche Analyse bestehender Modelle zeigt eine Vorherrschaft formaler Gleichgewichtskonzepte der neoklassischen Informationsökonomie. Keiner der aktuellen...
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that is roughly consistent with the benchmark theory. …
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We study the prices of a firm's debt and equity in a market where investors have private information and may exhibit differences of opinion. We show how debt and equity valuations, and the impact of public information and distress risk on these valuations, depend upon disagreement and the...
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