We estimate that the ban on short-selling financial stocks imposed by the SEC in September 2008 led to price inflation of 10-12% in the banned stocks based on a factor-analytic model that extracts common valuation information from the prices of stocks that were not banned. This inflation...

During the subprime crisis, the FDIC has shown, once again, laxity in resolving and closing insolvent institutions. Ronn and Verma (1986) call the tolerance level below which a bank closure is triggered the regulatory policy parameter. We derive a model in which we make this parameter stochastic...

This paper examines whether dividend policy impacts firm value and find that paying dividends does improve firm value. Panel data regressions suggest that the dividend premium for firms' equity is 27.9% and the dividend premium for firms' assets is 11.0%. The tests using propensity score...