This article presents a model of information monitoring and market making in a dealership market. We model how intensively dealers monitor public information to avoid being picked off by professional day traders when monitoring is costly. Price competition among dealers is hampered by their...

The paper examines the impact of executive compensation on private securities litigation. We find that incentive pay in the form of options increases the probability of securities class action litigation, holding constant a wide range of firm characteristics. We further document that there is...

type="main" <title type="main">ABSTRACT</title> <p>We present a rational expectations model of optimal executive compensation in a setting where managers are in a position to manipulate short-term stock prices and the manipulation propensity is uncertain. We analyze the tradeoffs involved in conditioning pay on long- versus...</p>

This chapter surveys the theoretical and empirical research on the main mechanisms of corporate law and governance, discusses the main legal and regulatory institutions in different countries, and examines the comparative governance literature. Corporate governance is concerned with the...

Cover -- Contents -- Preface -- Introduction -- 0.1 What is This Book About? -- 0.2 Why Should We Care? -- 0.3 Some Puzzles -- 0.4 The Three Dimensions of Liquidity -- 0.4.1 Market Liquidity -- 0.4.2 Funding Liquidity -- 0.4.3 Monetary Liquidity -- PART ONE: Institutions -- 1 Trading Mechanics...