We use real estate firms to examine how asset liquidation values influence a firm's financing choices, since the productivity and quality of each asset is observable and potential measures of an asset's liquidation value are easier to ascertain ex-ante. We show that compared to firms that issue...

This paper studies the micro-foundations of commercial real estate risk and performance. Specifically, we analyze the linkage between tenant quality and the performance of commercial real estate. A commercial real estate asset can be valued as the sum of the discounted future cash flows of...

This document presents supporting materials for the following publication: Zhang, Juanjuan and Peng Liu (2012), "Rational Herding in Microloan Markets," Management Science, Vol. 58, No. 5, May, pp. 892-912.Microloan markets allow individual borrowers to raise funding from multiple individual...

The decision to foreclose on a CMBS mortgage is made by the special servicer. A mortgage loan is in special servicing when it is either delinquent or in a state of imminent default. A special servicer should represent the interests of the underlying CMBS bondholders by returning the highest...

Even with many decades of experience with booking and reservations, managers in the hotel industry still face substantial challenges predicting future room demand. Using a general equilibrium approach, this paper provides a new reservation pricing method. By establishing a price for the...

This paper extends the maximal affine models of single assets to a multi-commodity setup. We show that the correlated version of maximal affine models for a single commodity is no longer maximal for multiple commodities. In the maximal model, the convenience yield of a certain commodity could...

Presale agreements have become a pervasive worldwide practice for residential sales, especially in many Asian markets. Although there is a burgeoning empirical literature on presales agreements, only a few papers actually address their theoretical foundations. We create a set of interrelated...