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This paper explores strategic trade in short-lived securities by agents who have private information that is potentially long-term, but do not know how long their information will remain private. Trading short-lived securities is profitable only if enough of the private information becomes...
Persistent link: https://www.econbiz.de/10012783684
Persistent link: https://www.econbiz.de/10012784310
We develop a model of mutual fund manager investment decisions near the end of quarters. We show that when investors reward better performing funds with higher cash flows, near quarter-ends a mutual fund manager has an incentive to distort new investment toward stocks in which his fund holds a...
Persistent link: https://www.econbiz.de/10012770722
We develop a model of mutual fund manager investment decisions near the end of quarters. We show that when investors reward better performing funds with higher cash flows, near quarter-ends a mutual fund manager has an incentive to distort new investment toward stocks in which his fund holds a...
Persistent link: https://www.econbiz.de/10012727953
The authors explore strategic trade in short‐lived securities by agents who have private information that is potentially long‐term, but do not know how long their information will remain private. Trading short‐lived securities is profitable only if enough of the private information becomes...
Persistent link: https://www.econbiz.de/10011197830
Persistent link: https://www.econbiz.de/10006808286
Chapter 11 structures complex negotiations between creditors and debtors that are overseen by a bankruptcy court. This paper identifies conditions under which it is optimal for the court to sometimes err in determining whether a firm should be liquidated. Such errors can affect the optimal...
Persistent link: https://www.econbiz.de/10012728726
We develop a spatial model in which we endogenize both the pricing of ATM services by banks and the choice of home bank and ATM use by consumers. The equilibrium delivers the empirical regularities: Banks set high bank account fees for their own customers, but do not charge them for ATM usage; in...
Persistent link: https://www.econbiz.de/10012787393
We develop a spatial model in which we endogenize both the pricing of ATM services by banks and the choice of home bank and ATM use by consumers. The equilibrium delivers the empirical regularities: Banks set high bank account fees for their own customers, but do not charge them for ATM usage; in...
Persistent link: https://www.econbiz.de/10012788112
This paper considers a financier contemplating a venture capital investment in a firm whose true value is unknown. The financier must make information-gathering and investment decisions on an ongoing basis to decide whether to undertake the investment and, later, if he chooses to finance the...
Persistent link: https://www.econbiz.de/10012788574