Introduction -- Zombie Businesses in Electronics Industry: Case Studies -- Misallocation of Internal Fund to Loss-Making Zombie Businesses in Electronics Industry -- Slow Downsizing after Mergers of Individual Loss-Making Parts and Components Divisions -- Final Remarks.

This paper studies bank new equity offerings in response to recently strengthened Basel capital regulation. Our empirical analyses investigate the determinants of issuing new equity and estimate its costs in sample selection model. The key finding is that weak capital base is one of the key...

We derive a coherent multi-factor model for pricing various derivatives written on the same underlying (potentially non-tradable) asset. We show the difference between a case in which the underlying asset is self-financed and tradable and a case in which it is not. In the first case, an...

This paper analyzes why the S&P 500 Index is not a self-financed or a tradable portfolio and why it cannot be replaced by a mimicking portfolio such as the SPDR or the Vanguard S&P 500 Index Fund, when applying the standard arbitrage pricing theory. In particular, we show that the nonlinear and...

Focusing on pre-announced index deletions which induce liquidity needs by index funds and using daily short selling data, we show that short sellers employ front-running strategies in which short sellers sell stocks immediately after the announcements of deletions from index composition until...