Purpose: This study aims to investigate the impact of family ownership on cooperative research and development (R&D). Drawing on the ability and willingness paradox framework in family business research, the authors suggest that family ownership influences cooperative R&D via two opposing...

We differentiate the liquidity and the quality of private assets in a tractable incomplete-market model with heterogeneous agents. The model decomposes the convenience yield of government bonds into a "liquidity premium" (flight to liquidity) and a "safety premium" (flight to quality) over the...

We build a model of endogenous credit cycles arising from the dynamics of adverse selection. Heterogeneous entrepreneurs trade productive assets in an anonymous market subject to financial frictions. Cream-skimming rent-seekers create lemon assets that can be traded. Lemon assets are...

We show the competing effects of a housing bubble on the real economy by developing a two-sector dynamic model with housing production. On the one hand, firms can sell or collateralize their houses to obtain financing, so a housing bubble helps firms obtain credit to finance their investment and...

Our paper attempts to propose a novel transmission mechanism of international financial cycles through cross-border capital flows. We first document that a systemic banking crisis in one country is generally associated with a surge in financial capital inflows. Then, we develop a tractable model...

This paper examines how employee satisfaction influence firm value during the COVID-19 crash and the mechanism that enables the relationship. Our results show that having satisfied employees serves as a moderating factor in mitigating the detrimental impact of equity market fluctuations in...