I analyze credit rating agencies and competition on a market with more than two agencies. Both investors and agencies react to each other's behavior. My model predicts cyclic dynamics in the base case: not only does the presence of trusting investors facilitate ratings inflation. In turn,...

We propose a novel framework for investigating learning dynamics on a competitive debt market. Observing a firm's survival of apparently distressed periods, the market eliminates asset value estimates that are too low to be consistent with the observed survival. Therefore, the firm's cost of...

Investment-Timing in einer vollkommenen Welt -- Ökonomische Fundierung von Emissionskosten -- Investment-Timing bei Finanzierungsbeschränkungen -- Investment-Timing bei Interessenkonflikten -- Schlussbetrachtung und Ausblick.

We examine the extent to which digital rights management (DRM) system impacts on mergers and acquisitions’ (M&A) due diligence. We use hand-collected data comprising the full dataset of digital M&A and patent M&A. To measure the performance of target firm at due diligence phase, we introduce...

Einleitung -- Teil I: „Setting the Scene“ – Das Fundament zukunftssicher aufbauen -- Unternehmenskultur im 21. Jahrhundert – “Culture eats strategy for breakfast.“ (Peter F. Drucker) -- Leadership im 21. Jahrhundert – “If you don’t understand the details of your business you...

In this paper, we propose a theoretical continuous-time model to analyze the impact of liquidity on bond prices. This model prices illiquid bonds relative to liquid bonds and provides a testable theory of illiquidity induced price discounts. The model is tested using 1992-1994 data from bonds...