We use the tools of mechanism design, combined with the theory of risk measures, to analyze how a cash constrained owner of an asset with known stochastic returns raises capital from a population of investors that differ in their risk aversion and budget constraints. The issuer partitions the...

Accruals are regarded as investments in working capital and are an integral component in the growth process of firms. By assuming asymmetry of information among investors when predicting the returns on such investments, investors are exposed to adverse selection problems. Consequently, in market...

We show that risk-mitigating incentives dominate risk-shifting incentives in fragile banks. We study security trading by banks, as banks can easily and quickly change their risk exposure within their security portfolio. For identification, we exploit different crisis shocks and supervisory...

This paper contributes to the ongoing efforts by the European authorities to reduce the reporting burden for banks by assessing the statistical methods currently used to compile data on financial transactions related to securities holdings. Based on statistical information collected from the...

Many scholars predict that European integration will foster adversarial legalism in Europe. In this article, I empirically assess the Eurolegalism thesis by examining EU regulatory mandates in the competition and securities fields, two policy areas where adversarial legalism is seen as most...

This article explores price impact in the context of securities fraud litigation, focusing on the probability of observing directionally-consistent abnormal returns (those that go in the direction of a plaintiff's theory of liability) under the hypothesis of price impact versus no price impact....

Recent declarations and investigations by the Securities and Exchange Commission suggest that blockchain-based assets are potentially subject to regulation as securities under the Securities Act. This Article presents a systematic analysis of the risks and embedded costs of investments in...

In the 1980s, Commerzbank was increasingly forced to become much more international if it wanted to be perceived as a relevant player in the field of investment banking, which was considered particularly attractive. This article focuses on the bank's initially cautious, then strongly accelerated...

This paper contributes to the ongoing efforts by the European authorities to reduce the reporting burden for banks by assessing the statistical methods currently used to compile data on financial transactions related to securities holdings. Based on statistical information collected from the...

Directional bets by short sellers typically forecast future returns, but direct evidence of how other investors acquire information from these bets is nearly nonexistent. Using granular data on the entire Brazilian OTC security lending market and all trades in the Brazilian stock exchange, we...

A liquidity-constrained asset owner designs an asset-backed security to raise funds from an informed liquidity supplier. Information insensitive securities reduce the liquidity supplier's informational rents. The issuer optimally screens the liquidity supplier's private information by offering a...

Using a large database of complex securities, I study how salient attributes of security design distort household investment decisions. I show banks add non-standard (fine-print) conditions to artificially increase advertised rates of headline return and downside protection-a phenomenon I term...

We examine the canonical influence of global market, currency and inflation risks on the returns from international real estate securities. In addition, we study how mispricing of credit in the local banking systems is related to the returns from these securities. We analyse a global sample of...

Part I - Shorting Fraud - Profiting While Maintaining Market Integrity -- 1 Introduction -- 2 The Proactive Fraud Investment Strategy -- 3 Market integrity rewards and The potential of Corporate Fraud Exposure Capital Gains -- Part II – The Corporate Fraud and The Corporate Fraudster -- 4 The...

We extend the d cifically we analyse constant absolute and constant relative risk aversion, provide conditionsfor the existence of equilibrium, and evaluate equilibrium prices at US-data. We find that constant absolute risk aversion works particularly well at moderate levels of risk aversion. In...

Securities regulators in the United States have repeatedly asserted that most fungible blockchain-based crypto assets are clearly securities under current law. This perspective may at first seem understandable. Much of the interest in crypto assets to date has been driven by their investment...

This working paper is written by Emre Ozdenoren (London Business School), Kathy Yuan (London School of Economics) and Shengxing Zhang (London School of Economics).Borrowers obtain liquidity by issuing securities backed by current period payoff and resale price of a long-lived collateral asset....

This paper reviews the mortgage-backed securities (MBS) market, with a particular emphasis on agency residential MBS in the United States. We discuss the institutional environment, security design, MBS risks and asset pricing, and the economic effects of mortgage securitization. We also assemble...

Event studies play a central role in class action securities fraud litigation. Event studies are used to assess market efficiency, price impact, loss causation, and damages, all of which are essential elements of a securities fraud claim. However, a substantial increase in market-wide...

Tokenization is a relatively new activity in digital finance. The standard features and characteristics of assets and securities can be enhanced by tokenization, a process that creates a blockchain representation of the underlying instrument. Asset and security tokenization produces many...

Abstract An asset owner designs an asset-backed security and a signal about its value. After privately observing the signal, he sells the security to the monopolistic liquidity supplier. Any optimal signal structure guarantees the security sale and commits the issuer not to learn too positive...

In this chapter we focus on disclosure—the foundation of securities regulation—of uncertain future events. We note two major differences in the United States and European disclosure regimes: the definition of materiality of information about unfolding events and whether disclosure of...

This paper reviews the mortgage-backed securities (MBS) market, with a particular emphasis on agency residential MBS in the United States. We discuss the institutional environment, security design, MBS risks and asset pricing, and the economic effects of mortgage securitization. We also assemble...

This note explores the interactions between new technologies with key areas of commercial law and potential legal changes to respond to new developments in technology and businesses. Inspired by the Bali Fintech Agenda, this note argues that country authorities need to closely examine the...