We analyze the profitability of government-owned banks' lending to their owners, using a unique data set of relatively homogeneous government-owned banks; the banks are all owned by similarly structured local governments in a single country. Making use of a natural experiment that altered the...

This paper examines the IPO pricing processes of two different markets, each of which employs bookbuilding methods for marketing the IPO shares. For each market we investigate two questions:(...)

Under expected utility theory, unconditional expected utility can be decomposed into a weighted sum of conditional expected utilities where the weights are marginal probabilities. We derive necessary and sufficient conditions for a similar decomposition in the framework of Cumulative Prospect...

We analyse the pricing and allocation of unseasoned securities by means of mechanisms such as auctions or bookbuilding. Our analysis allows the pricing and allocation rules to be based not only on investors' bids, but also on information revealed through pre-issue trading of the securities in a...