This article studies how the managers of a regulated firm can use debt and equity contracts to constrain the regulator's policy through the contingent transfer of control to external investors with high relative liquidation value. External finance increases regulated income and facilitates...

Incluye bibliografía ; Este artículo estudia como los administradores de una empresa regulada pueden utilizar contratos de deuda y ampliaciones de capital para restringir la política del regulador por medio de la transferencia del poder de control sobre la empresa a inversores externos con un...

A bank that needs a public bail-out to avoid liquidation can use financial contracts to provide contingent liquidation rights to investors and force the government to increase public support. Limiting the size of the bail-out before knowing the bank’s financial condition decreases welfare if...