We analyse an equilibrium model with restricted investor participation in which strategic arbitrageurs play an innovation game and exploit the resulting mispricings by reaping trading profits. Since the equilibrium asset structure is not chosen by a social planner, it is chosen to maximize...

The U.S. system of security law was designed more than 70 years ago to regain investors’ trust after a major financial crisis. Today we face a similar problem. But while in the 1930s the prevailing perception was that investors had been defrauded by offerings of dubious quality securities, in...

Decline in confidence in free market mechanisms in the past decade has provoked an increase in interest in regulatory issues. This paper seeks to answer one question: Are exchange listing rules an effective screening mechanism? Using a sample of IPO firms listing on major U.S. exchanges in...

Recent research on central bank governance has focused mainly on their monetary policy task. As the sub-prime loan market turmoil reminded us - central banks play a crucial role in financial markets not only in setting monetary policy, but also in ensuring their soundness and stability. In this...

We examine, both from a descriptive and a theoretical point of view, two of the most interesting particular features of the public interventions on the credit market in France: the insurance against default risk provided by a (partly) public agency (called SOFARIS) for the credit distributed to...

Cette etude propose une methodologie d'evaluation des opportunites sectorielles boursieres. En partant du principe qu'il existe des relations stables de long terme entre les variations boursieres et les fondamentaux macroeconomiques ou sectoriels, tant reels que financiers, une modelisation des...

Futures exchanges raise margins in environments characterized by recent substantial increases in futures price volatility, and they raise margins in contracts that have recently shown the largest volatility increase. Volatility then tends to fall. This reduction is smaller - especially the...

We model systemic risk in an interbank market. Banks face liquidity needs as consumers are uncertain about where they need to consume. Interbank credit lines allow banks to cope with these liquidity shocks while reducing the cost of maintaining reserves. However, the interbank market exposes the...

The purpose of this paper is to analyze what factors are driving the retirement savings of European individuals and whether there are marked differences in retirement preparation among a sample of European countries. Our evidence is based on a sample of 6,036 individuals from eight European...