In this paper we examine integration between emerging and U.S. debt and equity markets. We first investigate price changes around significant quot;events,quot; in this case changes in short-term U.S. interest rates brought about by actions of the Federal Reserve. Second, we estimate the...

We empirically investigate the interaction between hedging, financing, and investment decisions. This empirical study is suitable because the general theoretical predictions have not been derived yet, and due to the interaction effects, they may not be necessary identical to those which were...

The deregulation of the banking industry during the 1990s provides a natural (public policy) experiment for investigating how firms adjust their executive compensation contracts as the environment in which they operate becomes relatively more competitive. Using the Riegle-Neal Act of 1994 as a...

Some recent empirical evidence suggests that stock prices are not properly modelled as the present discounted value of expected dividends. In this paper we estimate a present value model of stock price that is capable of explaining the observed long-term trends in stock prices. The model...

Previous work on multifactor term structure models has proposed that the short rate process is a function of some unobserved diffusion process. We consider a model in which the short rate process is a function of a Markov chain which represents the 'state of the world'. This enables us to obtain...

Deregulation and technological change are transforming U.S. commercial banking from an industry dominated by thousands of small, locally focused banks into an industry where a handful of large banks could potentially span the nation and control the majority of its bank deposits. This paper...

The product mix changes that have occurred in banking organizations during the 1990s provide a natural experiment for investigating how firms adjust their executive compensation contracts as their mix of businesses changes. Deregulation and new technology have eroded banking organizations'...

The large majority of banks and savings institutions are small and community-based. But advances in information technology, new financial instruments, innovations in bank production processes, deregulation, and increased competition have created a less hospitable environment for community banks....

Some recent empirical evidence suggests that stock prices are not properly modeled as the present discounted value of expected dividends. In this paper, we estimate a present value model of stock price that is capable of explaining the observed long-term trends in stock prices. The model...