We consider a spatial model of bank competition to study how the diffusion of information technology affects competition in the lending market, stability of the banking sector, and social welfare. We find that the effects of an improvement in information technology depend on whether or not it...

We analyze the lending behavior of banks that benefit from a subsidized central bank liquidity provision (e.g., the ECB's LTRO). Utilizing a corporate finance-style model of bank monitoring and borrower moral hazard, we show that such provisions can soften banks' monitoring incentives and induce...

I study the effects of information technology (IT) progress in a model where stock prices aggregate speculators' information and guide firms' investments. Speculators with limited attention acquire more information about firms with larger investment capacities. IT progress (i.e., lowering...

Purpose – The purpose of this paper is to test the relationship between stock dividends policy and liquidity of ex ante announcement to improve the traditional stock dividends liquidity hypothesis. Design/methodology/approach – The authors examine a sample of 2,088 which matching stocks...

This paper builds a model of general equilibrium for production economies to analyze Chinese enterprise tax reform which regulated the unified enterprise tax rate to be at 25%. The reform was backed by the new Law on Corporate Income Tax executed from January 1, 2008. Using national statistics...