Showing 91 - 100 of 63,537
In an economy where traders absorb information partially, we study the effect of disclosure accuracy and disclosure clarity on financial markets. Accuracy measures how precisely a disclosure identifies the firm's fundamentals, whereas clarity measures how well traders understand the disclosure....
Persistent link: https://www.econbiz.de/10012894763
Diversification through pooling and tranching securities was supposed to mitigate creditor runs in financial institutions by reducing their credit risk, yet many financial institutions holding diversified portfolios experienced creditor runs in the recent financial crisis of 2007-2009. We...
Persistent link: https://www.econbiz.de/10012898888
Despite a growing interest, researchers and practitioners still struggle to transfer the blockchain concept introduced by Bitcoin to market-oriented application scenarios. To shed light on the technology's usage in markets with asymmetric information, this study analyzes the effect of the...
Persistent link: https://www.econbiz.de/10012898959
We show how decentralized individual investments can efficiently allocate capital to innovating firms via equity crowdfunding. We develop a model where consumers have privately known consumption preferences and may act as investors. Consumers identify worthwhile investments based on their own...
Persistent link: https://www.econbiz.de/10012935060
In many environments, including credit and online markets, past records about participants are collected, published, and erased after some time. We study the effects of erasing past records on trade and welfare in a dynamic market where each seller's quality follows a Markov process and buyers...
Persistent link: https://www.econbiz.de/10012936320
When can policy makers use policy-relevant information from financial market prices and how does policy affect price informativeness? I analyze a novel setting with noise where a policy maker tries to infer information about a state variable from prices to improve policy decisions, and policy in...
Persistent link: https://www.econbiz.de/10012937900
We examine how an informational feedback loop between bilateral security trading and firm investment endogenously affects information production. A trader's acquisition of information about a firm's investment opportunity can create an endogenous trade surplus that materializes only if trade may...
Persistent link: https://www.econbiz.de/10012941108
In many environments, including credit and online markets, past records about participants are collected, published, and erased after some time. We study the effects of erasing past records on trade and welfare in a dynamic market where each seller's quality follows a Markov process and buyers...
Persistent link: https://www.econbiz.de/10012941837
We show how the prospect of disputes over firms' revenue reports promotes debt financing over equity. These findings are presented within a costly state verification model with a risk averse entrepreneur. The prospect of disputes encourages incentive contracts that limit penalties and avoid...
Persistent link: https://www.econbiz.de/10012943677
Asset-based lending, the supply of loans based on floating collateral, is an important source of funding for small .rms. We analyze the effect of competition on asset-based loan markets on interest rate distributions and the mobility of small firms. Close monitoring of collateral by lenders...
Persistent link: https://www.econbiz.de/10012866384