Showing 161 - 170 of 83,436
The regulatory use of banks' internal models makes capital requirements more risk-sensitive but invites regulatory arbitrage. I develop a framework to study bank regulation with strategic selection of risk models. A bank supervisor can discourage arbitrage by auditing risk models, and implements...
Persistent link: https://www.econbiz.de/10011958937
"En la actualidad nadie niega la importancia de las empresas Clasificadoras de Riesgo debido a que éstas pueden ayudar a que los inversionistas se encuentren mejor informados sobre la calidad crediticia de los títulos sobre los cuales invierten o de los emitidos por empresas de las cuales son...
Persistent link: https://www.econbiz.de/10010842570
This paper develops a theory that generates an equilibrium relationship between product complexity, transparency, and trust in firms. Complexity, transparency, and the evolution of trust are all endogenous, and equilibrium transparency is non-monotonic. The least-trusted firms choose the lowest...
Persistent link: https://www.econbiz.de/10014254035
An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit rationing, and other inefficiencies that arise when borrowers hold ex ante private information. There is no clear empirical evidence regarding the central implication of this...
Persistent link: https://www.econbiz.de/10010292292
By using short-term direct finance firms of the highest credit quality expose themselves to rollover risk in the public debt markets. Firms insure themselves against this risk by securing backup lines of credit from banks that they may use should market liquidity dry up. In a first step, this...
Persistent link: https://www.econbiz.de/10010295942
The effects of public policy programs which aim at internalizing spill-overs due to successful innovation are analyzed in a sequential double-sided moral hazard doublesided adverse selection framework. The central focus lies in analyzing their impact on contract design. We show that in our...
Persistent link: https://www.econbiz.de/10010298343
The paper studies how stock price misvaluation and financial frictions affect whether an acquisition occurs between or within industries and whether the acquirer pays in cash or stocks. I set up a model where stock market misvaluation correlates within industries and across industries and assume...
Persistent link: https://www.econbiz.de/10011917033
Crowdfunding has mostly been used to finance very unique projects. Recently, however, companies have begun using it to finance more traditional products where they compete against other sellers of similar products. Major crowdfunding platforms, Kickstarter and Indiegogo, as well as Amazon have...
Persistent link: https://www.econbiz.de/10012611282
We propose an information-based theory of capital structure to address the diversity of firm financing behavior and the variety of optimal financial contracts. Our model features nested information problems of adverse selection and agency cost. We prove that there exists a unique perfect...
Persistent link: https://www.econbiz.de/10012670895
How do financial constraints influence innovative activities of firms? In a two-period model of price competition with differentiated products we first analyze the incentives to innovate when both firms are self-financed. We then assume that one of the firms is financially constrained and...
Persistent link: https://www.econbiz.de/10010435592