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This study examines the role of repeat interactions between placement agents (investment banks) and investors in the initial pricing of convertible bonds. Under the assumption that attracting repeat investors can reduce search frictions in primary issue markets, we test the hypothesis that...
Persistent link: https://www.econbiz.de/10010990564
Do traders’ leverage constraints drive equity market liquidity? We use the unique features of the margin trading system in India to test the hypothesis that there is a causal relationship between traders’ leverage constraints (i.e., their ability to borrow to invest in risky assets) and a...
Persistent link: https://www.econbiz.de/10011426749
Does trader leverage drive equity market liquidity? We use the unique features of the margin trading system in India to identify a causal relationship between traders’ ability to borrow and a stock’s market liquidity. To quantify the impact of trader leverage, we employ a regression...
Persistent link: https://www.econbiz.de/10011901321
Does trader leverage exacerbate the liquidity comovement that we observe during crises? Using a regression discontinuity design, we exploit threshold rules governing margin eligibility in India to analyze the impact of trader leverage on systematic liquidity. We find that trader leverage causes...
Persistent link: https://www.econbiz.de/10011901323
We use the Korean Financial Crisis as a natural laboratory for examining interactions among firm diversification, equilibrium capital structure and tail probability events. When the crisis hit in 1997, several major firms, including a large number of highly leveraged conglomerates (Chaebols),...
Persistent link: https://www.econbiz.de/10005180243
We examine the determinants of equity ownership by outside directors as well as the relationship between ownership and operating performance. Unlike previous studies of equity ownership by directors, we use hand-collected data on firm-level policies requiring director ownership for S&P 500 firms...
Persistent link: https://www.econbiz.de/10010619249
This paper examines the role of search frictions in convertible bond pricing. Using a sample of 533 Rule 144-A issues for the years 1997-2007, we examine two channels through which search frictions might impact initial pricing: the ease of attracting initial investors and expected after-market...
Persistent link: https://www.econbiz.de/10008852936
This paper models the interactions among product market innovation, product market competition, and corporate financing decisions in the context of a dynamic duopoly. One competitor faces an opportunity to adopt a new technology. If adopted, the firm must also determine whether it will obtain...
Persistent link: https://www.econbiz.de/10008852990
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