Bank payouts divert cash to shareholders, while leaving behind riskier and less liquid assets to repay debt holders in the future. Bank payouts, therefore, constitute a type of risk-shifting that benefits equity holders at the expense of debt holders. In this paper, we provide insights on how...

The paper describes selling and underwriting procedures in rights issues and open offers, and analyzes the costs of issue reported in prospectuses, including the substantial costs which are not for underwriting. The impression is often given that costs are fixed at 2% of gross proceeds, but they...

The paper compares beta estimates obtained from OLS regression with estimates corrected for heteroscedasticity of the error term using ARCH models, for 145 UK shares. The differences are mainly less than 0.10, for betas calculated using daily returns, but even such small differences can matter...

This paper proposes a framework for analyzing the evolution of financial sectors in economies transiting from command to market structures. Most commentators have tended to regard this"Transition"as an undifferentiated period to be traversed as rapidly as possible. In doing so they ignore the...