The Introductory chapter briefly describes the unintended emergence of the seconday market for developing country loans after protracted and unsuccessful negotiations between lending bankers and the indebted countries. The innovative Brady plan presented the banks involved in this market with...

The main purpose of the thesis is to investigate the link between financial policy and economic growth by focusing on the link between financial intermediation and capital accumulation. The investigation strategy is to examine the effect of recent reform in financial markets in Taiwan on its...

In the first essay, "Do Firms Knowingly Sell Overvalued Equity?", I develop a simple equilibrium model which shows that insider trading around seasoned equity offerings (SEO) depends on both the quality of issuing firms and insiders' exogenous consumption shocks, neither of which are known by...

The economic analysis of financial intermediaries has been a growing field. The goal of many works in this area has been to show that contractual arrangements can lead to symmetric Pareto optimal allocations in an economy with asymmetric private information.

This study tests empirically contracting theory in financial market. The model is based on Krasa and Villamil model (1992) which is modified to let each investor has k units of endowment, each bank has equity B, and monitoring cost depends on project size. In this model loan size per...