Natural disasters are conjectured to have two opposing effects on insurance firm values: a negative effect due to payments on policyholders' claims and a positive effect due to expectations of higher premiums. We test for the presence and relative strengths of these two effects by examining the...

This paper is an empirical exploration of the determinants of the required credit spreads on highly leveraged transaction (HLT) loans. The analysis uses a multi-factor spread model to estimate the movement of loan spreads relative to spreads required in the (competing) corporate bond market as...

We show that the regulation requiring corporate insiders to disclose their trades ex post creates incentives for informed insiders to manipulate the market by sometimes trading against their information. This allows them to increase their trading profits by maintaining their information...