We analyze firms' choice between exchanges to list their equity (including multiple listings), and exchanges' choice of listing standards for firms which apply for listing, in an environment of competition and co-operation among exchanges. We model an equity market characterized by asymmetric...

This paper investigates the interaction between synergies and internal agency conflicts that emerges endogenously in multi-division firms. We model internal agency activities as entrenchment: to avoid personal costs, a divisional manager can reduce the likelihood of her division being divested...

We present a novel source of disagreement grounded in decision theory: ambiguity aversion. We show that ambiguity aversion generates endogenous disagreement between a firm's insider and outside shareholders, creating a new rationale for corporate governance systems. In our paper, optimal...

We address the question: At what stage in its life should a firm go public, rather than undertake its projects using private equity financing? In our model, a firm may raise external financing either by placing shares privately with a risk-averse venture capitalist, or by selling shares in an...

We develop a theory of unit IPOs, in which the firm going public issues a package of equity with warrants. We model an equity market where insiders have private information about the riskiness as well as the expected value of their firm's future cash flows. We demonstrate that, in equilibrium,...

We develop a theory of unit IPOs, in which the firm going public issues a package of equity with warrants. We model an equity market characterized by asymmetric information, where insiders have private information about the riskiness as well as the expected value of their firm's future cash...

We model firms' choice between bank loans and publicly traded debt, allowing for debt-renegotiation in the event of financial distress. Entrepreneurs, with private information about their probability of financial distress, borrow from banks (multi-period players) or issue bonds to implement...