The goal of this paper is to investigate whether specialists use quoted depth as a strategic choice variable. In particular, the paper investigates whether specialits manage quoted depth to reduce risks associated with information events. In order to study specialists' behavior, quoted depth...

We study the problem of a firm that is controlled by a large shareholder and is going public in the presence of agency problems, asymmetric information, and trading of shares over time. In this multiperiod signalling game, a shareholder-manager can develop a reputation for expropriating low...

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...