Capital

Family Firms and Investments

Family firms are a widespread control structure in most countries, especially among smaller firms. A vast literature addresses the question of whether...

This paper analyzes the effects of holding firms liable for non-disclosure of material information when raising capital. A privately-informed...

The choice between rights-preserving issue methods. Regulatory and financial aspects of issuing seasoned equity in the UK

Multinationals and the High Cash Holdings Puzzle

The Real Costs of Financial Efficiency When Some Information Is Soft

This paper shows that improving financial efficiency may reduce real efficiency. While the former depends on the total amount of information...

What Role of Legal Systems in Financial Intermediation? Theory and Evidence

We develop a theory and empirical test of how the legal system affects the relationship between venture capitalists and entrepreneurs. The theory uses a...

Capital-Market Effects of Securities Regulation: Prior Conditions, Implementation, and Enforcement

This paper examines the economic effects of changes in securities regulation. We analyze two key directives in the European Union (EU) that tightened...

Market Liquidity, Investor Participation and Managerial Autonomy: Why do Firms go Private?

Structural Corporate Degradation Due to Too-Big-to-Fail Finance

Corporate governance incentives at too-big-to-fail financial firms deserve systematic examination. For industrial conglomerates that have grown...

Are Stock-Financed Takeovers Opportunistic?

The more the target knows about the bidder, the more difficult it is to pay with overpriced shares. Thus, under bidder opportunism, the fraction of stock...

Leverage and Value Creation in Holding-Subsidiary Structures

This paper determines optimal capital structure and value of Holding-Subsidiary structures (HS), when there is a trade-off between bankruptcy costs...

Financial Liberalization and Banking Crises: The Role of Capital Inflows and Lack of Transparency

This paper shows that the liberalization of capital inflows may undermine bank stability in emerging markets. After financial liberalization,...