The Paper presents a continuous-time model for the timing of riskless arbitrage when the mispricing between two equivalent portfolios varies stochastically through time under the exogenous impact of liquidity trades and persistent prospect that the arbitrage bubble can 'burst' .

We consider a setting in which insiders have information about income that outside shareholders do not, but property rights ensure that outside shareholders can enforce a fair payout. To avoid intervention, insiders report income consistent with outsiders' expectations based on publicly...

We present a dynamic agency model of investment, borrowing and payout decisions by a mature corporation operating in perfect financial markets. Risk-averse managers implement an inter-temporal strategy that maximizes their lifetime utility of managerial rents. They under-invest and smooth payout...

We present a real-options model of takeovers and disinvestment in declining industries. As product demand declines, a first-best closure level is reached, where overall value is maximized by shutting down the .rm and releasing its capital to investors. Absent takeovers, managers of unlevered...

This paper discusses the housing market in the Netherlands. Our study benefits from access to the DNB household survey (formerly known as CentER Savings Survey) and analyzes a panel dataset of 8867 households over the period 1992-2005.

What causes mergers and acquisitions (M&A)? This is an issue that still remains to some extent a puzzle. While we can, of course, come up with a story or motive for each individual merger or takeover case, finance theory has not quite managed yet to formulate a coherent theory that is generally...