The threat of takeover acts to discipline managers, but it also makes shareholders' assurances to managers less reliable and so interferes with contrcting between them. These two effects have opposing implications about the level of executive compensation: the disciplinary effect implies a...

This study explores multivariate methods for investment analysis based on a sample of return histories that differ in length across assets. The longer histories provide greater information about moments of returns, not only for the longer-history assets, but for the shorter-history assets as well.

When the underlying price process is a one-dimentional diffucion, as well as in certain restricted stochastic volatility settings, a contingent claim's delta is always bounded by the infimum and supremum of its delta at maturity. Further, if the claim's payoff is convex (concave), then the...