We compare competitive equilibrium outcomes with and without trading by an informed insider, in a model with ex ante aggregate investment choices which can not respond to any enhanced informational content of interim asset prices associated with insider trading. Noise trading is generated by...

We develop a theory of control rights in the context of licensing interim innovative knowledge for further development, which is consistent with the inalienability of initial innovator's intellectual property rights. Control rights of a downstream development unit, a buyer of the interim...

We develop a theory of control rights in the context of licensing interim innovative knowledge for further development, which is consistent with the inalienability of initial innovator's intellectual property rights. Control rights of a downstream development unit, a buyer of the interim...

We review the economics of bank regulation as developed in the contemporary literature. We begin with an examination of the central aspects of modern banking theories in explaining the asset transformation function of intermediaries, optimal bank liability contracts, coordination problems...

We review the contemporary theory of financial intermediation. The focus is on the contribution in the past 15 years or so that have advanced our understanding of why financial intermediaries exist, the credit allocation decision and other services they provide in spot and forward credit...

In a 40-plus year career notable for path-breaking work on capital structure and innovations in capital budgeting and valuation, MIT finance professor Stewart Myers has had a remarkable influence on both the theory and practice of corporate finance. In this article, two of his former students, a...