Asset owners (principals) typically do not manage their own investments and leave this job to delegated managers (agents). What is best for the asset owner, however, is usually not best for the fund manager. Additional agency conflicts arise when the asset owner does not know the quality and...

The effect of self-default on the valuation of liabilities and derivatives (DVA) has been widely discussed but the effect on assets has not received similar attention. Any asset whose value depends on the status, or existence, of the firm will have a DVA. We extend Burgard&Kjaer (2011) to...

In this paper, we analyze the conflicts of interest of an informed agent who is responsible for divulging his private information about a company and has a reward function positively dependent on its stock price. We assume that the demand for the stock is subject to shocks that may increase...

This paper analyzes the determinants of governance transparency. In our model, entrepreneurs optimally decide the precision of their earning reporting by trading off the possibility of expropriating profits against the capacity to attract external funding.We find that information is only...

A prominent motive for corporate venture capital (CVC) is the identification of entrepreneurial-firm acquisition opportunities. Consistent with this view, we find that one of every five startups purchased by 61 top corporate investors from 1987 through 2003 is a venture portfolio company of its...

A prominent motive for corporate venture capital (CVC) is the identification of entrepreneurial-firm acquisition opportunities. Consistent with this view, we find that one of every five startups purchased by 61 top corporate investors from 1987 through 2003 is a venture portfolio company of its...

Activist hedge funds revolutionized corporate America, generating both excitement and criticism alike. This article suggests that a novel market mechanism, a "super hedge fund," would maintain the benefits of hedge fund activism, while curbing its downsides. The super hedge fund would not really...

This paper examines information content of Environment, Social and Governance (ESG) from factor exposure perspective. We use integration approach of ESG in portfolio construction by using four broader MSCI USA ESG indices. The analysis has been using risk-return, CAPM, Fama-French three factors,...

I propose a tractable model integrating dynamic internal capital allocation with imperfect patent protection, thereby endogenizing patent war as well as financing constraints. I emphasize the central importance of capital intangibility for corporate decisions when intangibles are insecure. The...

Contrary to classic financial strategy based on the rational behaviour of economic agents, behavioural finance offers a more pragmatic vision of markets, notably by applying psychology.It is now fairly widely acknowledged that the assumption of market efficiency upon which classic financial...