Start-up entrepreneurs are often commercially inexperienced. In giving managerial advice, venture capitalists can importantly enhance the success of innovative but highly risky ventures. The supply of experienced venture capitalists is not eas-ily increased, however, when the rate of business...

This paper considers why a manager would choose to submit himself to the discipline of bank monitoring. This issue is analyzed within the context of a model where the manager enjoys private benefits, which can be restricted by the monitor, and is optimally compensated by shareholders. Within...

On peut identifier un modele anglo-saxon de financement, ou le salaries consommateurs detiennent directement les actions des entreprise, et le modele europeen (continental) , ou ils detiennent des actifs bancaires (sans risque) et ou les entreprises sont financees par le credit. Dans le premier...

It has been observed, in a number of european countries like France, that the increase in real long term interest rates seemd to imply a decrease in the corporate debt ratios (the debt to equity ratio or the debt to value added ratio) and also a decrease in th share of wages in value-added. We...

Nous construisons un modele a generations imbriquees, avec incertitude sur les preferences des consommateurs et sur la productivite globale des facteurs, et ou les entreprises peuvent se financer soit par dette, soit par actions. Nous utilisons ce modele pour examiner si une crise financiere...

We focus on an exogenous event that changes the cost of capital of a company – the addition of its stock to the S&P 500 index – and investigate how companies react to it by modifying their corporate financial and investment policies. This allows us to test capital structure theories in an...

It is typically less profitable for an opportunistic borrower to divert inputs than to divert cash. Suppliers, therefore, may lend more liberally than banks. This simple argument is at the core of our contract theoretic model of trade credit in competitive markets. The model implies that trade...

We find that institutional ownership in publicly traded companies is associated with more innovation (measured by cite-weighted patents). To explore the mechanism through which this link arises, we build a model that nests the lazy-manager hypothesis with career-concerns, where institutional...

This paper uses a unique micro-level data-set on Chinese firms to test for the existence of a 'political-pecking order' in the allocation of credit. Our findings are threefold. Firstly, private Chinese firms are credit constrained while State-owned firms and foreign-owned firms in China are not;...

Non-US firms frequently pay a substantial premium to have a US bank lead their initial public offering of equity, even when the issuing firm is not seeking a listing on a US exchange. We provide evidence that this decision reflects an expectation that US banks deliver a higher quality bundle of...