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Aggarwal, Dhruv Chand; Eldar, Ofer; Hochberg, Yael V.; … - 2022

We create a novel dataset to examine the nature and determinants of dual-class IPOs. We document that dual-class firms have different types of controlling shareholders and wedges between voting and economic rights. We find that the founders' wedge is largest when founders have stronger...

Persistent link: https://www.econbiz.de/10013492216

Stock Issues and Investment Policy When Firms Have Information that Investors Do Not Have

Myers, Stewart C. - 2008

This paper describes corporate investment and financing decisions when managers have inside information about the value of the firm's existing investment and growth opportunities, but cannot convey that information to investors. Capital markets are otherwise perfect and efficient. In these...

Persistent link: https://www.econbiz.de/10012774605

Financial Risk Capacity

Bigio, Saki - 2019

Financial crises are particularly severe and lengthy when banks fail to recapitalize after bearing large losses. We present a model that explains the slow recovery of bank capital and economic activity. Banks provide intermediation in markets with information asymmetries. Large equity losses...

Persistent link: https://www.econbiz.de/10012857809

Venture Capital Contracting and Syndication : An Experiment in Computational Corporate Finance

Fluck, Zsuzsanna - 2006

This paper develops a model to study how entrepreneurs and venture-capital investors deal with moral hazard, effort provision, asymmetric information and hold-up problems. We explore several financing scenarios, including first-best, monopolistic, syndicated and fully competitive financing. We...

Persistent link: https://www.econbiz.de/10012783670

Econometric Models of Limit-Order Executions

Lo, Andrew W.; MacKinlay, Archie Craig; Zhang, June - 2021

This paper attempts to assess whether money can generate persistent economic" fluctuations in dynamic general equilibrium models of the business cycle. We show that a small" nominal friction in the goods market can make the response of output to monetary shocks large" and persistent if it is...

Persistent link: https://www.econbiz.de/10013248406

What Do We Really Know About the Cross-Sectional Relation between Past and Expected Returns?

Grinblatt, Mark - 2014

profits across stock characteristics, season, and tax environment appear inconsistent with existing theory, but may point to …

Persistent link: https://www.econbiz.de/10012752800

Initial Public Offerings : Investor Behavior and Underpricing

Shiller, Robert J. - 2010

A questionnaire survey of investors in initial public offerings (IPO's) was undertaken to learn about patterns of … allocation process, their concern with stockbroker or underwriter reputation, their theories of IPO underpricing, and their … existing theories of IPO underpricing. and also suggesting different hypotheses. The impresario hypothesis is that underwriters …

Persistent link: https://www.econbiz.de/10012763289

On the Return to Venture Capital

Jovanovic, Boyan - 2014

We provide a model that links the high return to venture equity to the impatience of the VCs. VCs are scarce, and hence, they have market power and a high return on their investments. As a result, VCs are eager to terminate non-performing ventures so they can move on to new ones. The scarcity of...

Persistent link: https://www.econbiz.de/10012752010

Conflict of Interest in the Issuance of Public Securities : Evidence from Venture Capital

Gompers, Paul A. - 2010

In this paper we investigate potential conflicts of interest in the issuance of public securities in a setting analogous to a universal bank, i.e., the underwriting of initial public offerings by investment banks that hold equity in a firm through a venture capital subsidiary. We contrast two...

Persistent link: https://www.econbiz.de/10012763357

Do Trade Creditors Possess Private Information? Stock Returns Evidence

Hirshleifer, David A. - 2019

Theories of customer supplier relationships hold that the private information of suppliers about buyers explains the use of trade credit even when there is a competitive banking sector. If suppliers possess private information about their buyers, then the buyer's order size and ability to pay on...

Persistent link: https://www.econbiz.de/10012892573