This paper presents evidence that the enactment of insurance guaranty fund statutes induced managers of covered insurers to take actions that shifted risk to the guarantor. The mechanism for risk- shifting was a decrease in reserves. The strongest evidence appears for Commercial Multi-Peril...

This study explores empirically the fundamental factors that affect cross-country stock return correlations. Using transactions data from 1988 to 1992, we construct overnight and intraday returns for a portfolio of Japanese stocks using their NYSE-traded American Depository Receipts (ADRs) and a...

The cyclical variation in office construction, vacancies, rents and values over the last decade has been enormous throughout the world. Numerous hypotheses have been advanced for this enormity, including prolifigate lenders, egomaniacal developers, and even rational behavior in the face of...

This paper derives theoretical explanations for the increase in the returns-earnings R2 as earnings are aggregated over longer windows. Consistent with our intuition, the model shows that aggregation is useful because accounting lags cancel out over time, thus improving the returns-earnings...

We study a model of double moral hazard in which an information system is used in a decision problem (the principal can choose her own act based on the information) and a control problem (the principal can use the information to motivate the agent). An information system that provides more...