Based on the LEN-model KRAPP (1999, 2000) analyses for different constellations howcollusive behaviour of agents influences the principal’s welfare. We try to complement this analysisby considering additional scenarios. Furthermore, we take into account that the principal cannot ap-praise...

The pace of innovation in financial instruments has been enormous over the last two dec-ades, but only a few of them have survived. Several papers deal with the valuation of existing financialproducts. In contrast, our approach tries to explain the use of certain financial innovations by...

As in Breuer/Hartmann/Kleefisch (2003) this approach tries to explain the use of certainfinancial innovations by their fulfillment of different corporate financing functions. In contrast, wedissect equity instead of debt innovations. First, we identify numerous basic components of...

We consider how the introduction of financial innovations may affect the intensity of productmarket competition. When rival firms issue debt, their product market behavior is driven by strategic con-siderations that are different from the ones in the case of pure equity financing. In particular,...