Growth Options, Limited Risk Sharing, and Asset Prices
... maximize private benefits at the cost of reduced firm value. This incentive constraint limits an expert’s capacity to insure against idiosyncratic cash flow and investment risks. On the other hand, households cannot run firms or trade assets, but they can invest in financial securities and therefor ...
... maximize private benefits at the cost of reduced firm value. This incentive constraint limits an expert’s capacity to insure against idiosyncratic cash flow and investment risks. On the other hand, households cannot run firms or trade assets, but they can invest in financial securities and therefor ...
Determination of Risk Aversion and Moment
... development of a profound quantitative assessment method in practice is obviously the difficulty to determine risk aversion (RAV) with confidence. This ...
... development of a profound quantitative assessment method in practice is obviously the difficulty to determine risk aversion (RAV) with confidence. This ...
Overborrowing, Financial Crises and ‘Macro-prudential’ Policy ∗ Javier Bianchi
... two key questions: First, is overborrowing a significant macroeconomic problem, in terms of causing financial crises and driving macro dynamics during both ordinary business cycles and crises episodes? Second, are the so-called “macro-prudential” policies that are being widely adopted in response to ...
... two key questions: First, is overborrowing a significant macroeconomic problem, in terms of causing financial crises and driving macro dynamics during both ordinary business cycles and crises episodes? Second, are the so-called “macro-prudential” policies that are being widely adopted in response to ...
What is the Wealth of a Nation?
... Although abstract economic theory sometimes employs variables that cannot be directly observed, that theory nevertheless can be a powerful guide to straight thinking. The consumer-choice theory we covered at the beginning of the course occasionally serves that purpose. There we styled human beings a ...
... Although abstract economic theory sometimes employs variables that cannot be directly observed, that theory nevertheless can be a powerful guide to straight thinking. The consumer-choice theory we covered at the beginning of the course occasionally serves that purpose. There we styled human beings a ...
Liquidity Risk and Asset Pricing
... low contemporaneous returns and high predicted future returns. ...
... low contemporaneous returns and high predicted future returns. ...
Funding Liquidity, Market Liquidity and the Cross-Section
... portfolios. But AEM show that leverage risk successfully prices the cross-section of size and book-to-market portfolios. We find that the leverage factor explains by itself 87 percent of the dispersion of returns in the cross-section of portfolios sorted by bookto-market, but only 1 percent in the c ...
... portfolios. But AEM show that leverage risk successfully prices the cross-section of size and book-to-market portfolios. We find that the leverage factor explains by itself 87 percent of the dispersion of returns in the cross-section of portfolios sorted by bookto-market, but only 1 percent in the c ...
Dividend Increase Announcements and Stock Market Reaction
... on their stocks prices. In this paper, we will discuss some of the most important theories in the dividend policy area which are the Irrelevance dividend theory, Tax differential theory and Bird in the hand theory. a. Irrelevance dividend theory There are some theorists in finance who believe that i ...
... on their stocks prices. In this paper, we will discuss some of the most important theories in the dividend policy area which are the Irrelevance dividend theory, Tax differential theory and Bird in the hand theory. a. Irrelevance dividend theory There are some theorists in finance who believe that i ...
WP 213 DEVELOPMENT OF A FINANCIAL HEALTH INDICATOR
... and non-failing companies. The definition of failure is based on a legal criterion, namely that a company is considered to have failed if it has faced bankruptcy or judicial administration in the past. The indicator summarises each company’s situation in a single value which takes account simultaneo ...
... and non-failing companies. The definition of failure is based on a legal criterion, namely that a company is considered to have failed if it has faced bankruptcy or judicial administration in the past. The indicator summarises each company’s situation in a single value which takes account simultaneo ...
Financial Market Imperfections and the Pricing Decision of Firms
... constrained may affect the pricing decision of a firm: firms with initially low prices that sell large quantities may not be able to finance their production inputs and may therefore find it optimal to scale down production and adjust prices up. On the other hand, firms seeking to gain market share ...
... constrained may affect the pricing decision of a firm: firms with initially low prices that sell large quantities may not be able to finance their production inputs and may therefore find it optimal to scale down production and adjust prices up. On the other hand, firms seeking to gain market share ...
NBER WORKING PAPER SERIES DO FIRMS IN COUNTRIES WITH POOR PROTECTION
... might result from breakdowns in law and order, others might be due to political interferences, and some might just be attempts to shake down firms. Regardless of the source of these business interruptions, firms have to hold more liquid assets than in more stable countries with better institutions. ...
... might result from breakdowns in law and order, others might be due to political interferences, and some might just be attempts to shake down firms. Regardless of the source of these business interruptions, firms have to hold more liquid assets than in more stable countries with better institutions. ...
Cayman Islands Financial Services and Related Industries
... organisations encouraged participation in an online and confidential survey which asked companies about their primary and secondary business activities as well as their employees, revenue (including its repatriation), wages, business-to-business purchases, and community contributions. A copy of this ...
... organisations encouraged participation in an online and confidential survey which asked companies about their primary and secondary business activities as well as their employees, revenue (including its repatriation), wages, business-to-business purchases, and community contributions. A copy of this ...
Understand Home Insurance Research Report
... The survey was conducted in July 2014. All respondents completed the survey online. Each respondent took 6-8 minutes to complete the survey. A nationally representative sample was obtained (based on gender, age and location). Respondents were sourced from an ISO accredited market research panel whic ...
... The survey was conducted in July 2014. All respondents completed the survey online. Each respondent took 6-8 minutes to complete the survey. A nationally representative sample was obtained (based on gender, age and location). Respondents were sourced from an ISO accredited market research panel whic ...
Housing and Portfolio Choice: A Life Cycle Simulation Model
... Housing investments are often highly leveraged in that investors are only required to invest a certain fraction of the house price up front, the so-called down payment. Fourth, classic portfolio theory generally abstracts from housing as an additional illiquid asset class with its role as credit col ...
... Housing investments are often highly leveraged in that investors are only required to invest a certain fraction of the house price up front, the so-called down payment. Fourth, classic portfolio theory generally abstracts from housing as an additional illiquid asset class with its role as credit col ...
Kingdom of Bahrain: Financial System Stability Assessment
... monitor rising exposures, and eventually a preemptive tightening of prudential requirements may be warranted. The Bahrain Monetary Agency (BMA), which has had supervisory authority over the entire financial system since 2002, has modernized prudential requirements and is enhancing its supervisory ca ...
... monitor rising exposures, and eventually a preemptive tightening of prudential requirements may be warranted. The Bahrain Monetary Agency (BMA), which has had supervisory authority over the entire financial system since 2002, has modernized prudential requirements and is enhancing its supervisory ca ...
Information Asymmetry and Discretionary Accounting in
... contributes to the systemic risk of the economy as a whole (Acharya et al., 2010; Bushman and Williams, 2015). Consequently, it is important to ensure the transparency and quality of the information provided by banks in particular. In a similar vein, evidence shows that earnings management is assoc ...
... contributes to the systemic risk of the economy as a whole (Acharya et al., 2010; Bushman and Williams, 2015). Consequently, it is important to ensure the transparency and quality of the information provided by banks in particular. In a similar vein, evidence shows that earnings management is assoc ...
JOIM - CSInvesting
... 7. We calculate the …rm’s ratio of market equity to book equity (M B). Marketto-book may capture over-valuation of distressed …rms that have recently experienced heavy losses. It may also be important in modeling default since it might enter as an adjustment factor to our three accounting measures t ...
... 7. We calculate the …rm’s ratio of market equity to book equity (M B). Marketto-book may capture over-valuation of distressed …rms that have recently experienced heavy losses. It may also be important in modeling default since it might enter as an adjustment factor to our three accounting measures t ...
Risk and Capital Management
... Jyske Bank offers pension and life insurance products, investment and asset management products, payment services products as well as advisory services from sub-contractors, including jointly owned sector companies. ...
... Jyske Bank offers pension and life insurance products, investment and asset management products, payment services products as well as advisory services from sub-contractors, including jointly owned sector companies. ...
