The objective of this paper is to empirically test the deleveraging of the Venezuelan financial system at the event of two contractive shocks, a monetary and an oil shock, and to characterize the types of risks that arise in each case. Although these shocks have similar effects on interest rates...

This paper re-examines the liquidity effect on stock expected returns in the NYSE over the period 1926–2008, the pre-1963 period, for which there is a lack of research, and the post-1963 period. The results from the entire sample of 1926–2008 show that expected returns increase with the...

What are the equilibrium features of a financial market where a sizeable proportion of traders face reputational concerns? This question is central to our understanding of financial markets, which are increasingly dominated by institutional investors. We construct a model of delegated portfolio...

This paper examines the optimal financial markets liberalization policy for a large country in a two-country general equilibrium production economy. In our model, household's portfolio choice is modeled separately from firm's investment decision and financial markets play an important role in...

We explore the joint determination of product differentiation strategy and corporate leverage in a setting where (i) product differentiation is valued by customers; (ii) debt is necessary to discipline managers; and (iii) liquidation is costly for customers, in particular, when products are...

This United Nations Policy Note on Financial Policies provides practical guidance on how to operationalize alternative equitable and employment-generating financial policies in National Development Strategies. This Policy Note has been developed in cooperation with UN agencies, and has been...

Na busca de uma avaliação em negócios mais ampla, se fez necessário incorporar no fluxo de caixa descontado variáveis de natureza qualitativa e subjetiva. Portanto, o objetivo desse artigo é contribuir na aplicação do método do fluxo de caixa descontado, utilizando a metodologia...

Continuous-time stochastic volatility models are becoming a more and more popular way to describe moderate and high-frequency financial data. Recently, Barndorff-Nielsen and Shephard (2001a) proposed a class of models where the volatility behaves according to an Ornstein-Uhlenbeck process,...

We use exogenous variation in the degree of restrictions to bank competition across Italian provinces to study both the effects of bank regulation and the impact of deregulation. We find that where entry was more restricted the cost of credit was higher and - contrary to expectations - access to...