Does securitization distort the foreclosure decisions of non-performing mortgages? In a model of mortgage-backed securitization with an endogenous foreclosure policy, we find that the securitizing bank adopts a tougher foreclosure policy than the first-best, despite resulting in higher loan...

Financing an investment off-balance sheet gives a bank the option, but not the obligation, to voluntarily support debt repayments using its on-balance sheet funds when the investment fails. Such flexibility, which is absent with on-balance sheet funding, allows the bank to signal information...

How does securitisation distort the foreclosure decision of non-performing mortgages? In a model in which informed securitisers raise liquidity by jointly designing the mortgage-backed security and the foreclosure policy, the authors find that securitisers optimally adopt an excessive...

Including disaggregate variables or using information extracted from the disaggregate variables into a forecasting model for an economic aggregate may improve the forecasting accuracy. In this paper we suggest to use the boosting method to select the disaggregate variables which are most helpful...

This study examines the conflicting relationship between quality management (QM) and innovation on a global basis using a multidimensional view of QM. QM is divided into two dimensions: hard QM and soft QM. Quality performance as an intended consequence of QM implementation is also examined as a...

This paper investigates whether activist investors' focus on short-term stock prices impedes their role in improving corporate governance. The model builds on the notion that both the act of intervention and the threat of an intervention can generate value for the target firm. While the effect...

Stress tests can affect banks' lending behavior. Since regulators care about lending, banks' reactions affect the test's design and create a feedback loop. We demonstrate that there may be multiple equilibria due to strategic complementarity, possibly leading to excess default or insufficient...