A hedge fund's capital structure is fragile because uninformed fund investors are highly loss sensitive and easily withdraw capital in response to bad news. Hedge fund managers, sharing common investors and interacting with each other through market price, sensitively react to other funds'...

The authors theoretically analyze the efficiency of liquidity flows in stabilizing distressed markets. Their analysis focuses on the incentives for financial institutions; specifically, they focus on arbitrage profit as an incentive and liquidity risk as a disincentive. The authors show that...

This paper tests the dynamics implied by a supplied-constrained view of the relationship between market fundamentals and house prices in the case of Seoul's housing market. The view is that supply constraints have led to serious shortages in certain submarkets, and that these shortages have led...

The present study is an attempt to quantify the agglomeration risk in retail shopping centers. We accept that consumers are attracted to a shopping center in proportion to the mass of the anchor tenant. Nonetheless we feel it important to allow this attraction to be stochastic with its time...

Purpose – In this study, we investigate determinants of hedging with derivatives and its effect on firm value and firm risk for Korean firms. Design/methodology – To avoid the endogeneity problem pointed out in previous studies, we use a two-stage analysis by using gains and losses from...

We analyze the efficiency of the liquidity flows provided to recover stability in a distressed market. Using a theoretical framework, our analysis focuses on the incentives of financial institutions, namely, the incentive for arbitrage profits, the disincentive from liquidity risk, and market...