The increasing popularity of non-dealer security markets that offer automated, computer-based, continuous trading reflects a presumption that institutionally-set trading sessions are economically obsolete. This theoretical paper investigates the effect of the trading frequency, a key feature of...

International multiple listing offers a unique opportunity to study the efficiency of information transmission across national markets. The knowledge gained from observing a stock of the same company priced in multiple markets differs from what may be gained from observing relations across...

Static tradeoff theories, which do not explicitly treat the impact of transaction costs, do not explain the policy of asymmetry between frequent small debt transactions and infrequent large equity transactions. Nor do these theories explain why the debt ratio is allowed to wander a considerable...

This paper offers a class of diffusion models that mimic the firm's pecking order behaviour and are designed to optimize an intertemporal leverage strategy in the presence of refinancing transaction costs. The proposed class of models is compatible with traditional static tradeoff theories and...

Arrow-Pratt measures of risk aversion have been defined for the univariate case. For utility functions having the same ordinal preferences, the authors extend K. J. Arrow's probability premium index to the multivariate case and obtain a unique solution that can be employed to risk-aversion...