I explore the effect of the threat posed by low-cost competitors on debt structure in the airline industry. I use the route network expansion of low-cost airlines to identify routes where the probability of future entry increase dramatically. I find that when a large portion of their market is...

This paper analyses the co-operative financial structure and compares it with the structure of conventional capitalist companies, showing the advantages and disadvantages of each form of finance. At the same time, we propose a classification of the different sources of co-operative company...

We characterize the optimal financial structure as a strategic de- vice to optimize the value of a firm competing in a market whose struc- ture is endogenous. Contrary to traditional results based on duopolies and depending on the form of competition, we show the general opti- mality of moderate...

How many and which firms issue equity and bonds in domestic and international markets, how do these firms grow relative to non-issuing firms, and how does firm performance vary along the firm size distribution (FSD)? To evaluate these questions, we construct a new dataset by matching data on...

It is not too uncommon to note practice differs from theory. As theory is constructed based on a framework of 'ideal conditions', its application in real - not so ideal - conditions is definitely a challenge. However unreal the theoretical conditions look, they are necessary to understand things...

It is not too uncommon to note practice differs from theory. As theory is constructed based on a framework of 'ideal conditions', its application in real - not so ideal - conditions is definitely a challenge. However unreal the theoretical conditions look, they are necessary to understand things...

The Modern Portfolio Theory (MPT) has been the cornerstone of the asset allocation for over 40 years. In the past decade though, it led in a rather systematic way to bad investments decisions. One of MPT's main assumptions, investor risk aversion that translates into volatility aversion, biases...

The existing replication policies at top finance journals are far weaker than the policies at top economics journals. This paper explores both the costs and benefits of having a stronger replication policy in the context of my failed 2010 initiative to develop a unified policy across all top...