We examine the effects of keiretsu structure on capital market timing. Keiretsu groups offer a hybrid structure between fully integrated conglomerates and stand alone firms. We find that past market conditions affect the capital structure of keiretsu firms more than they affect the capital...

We examine the optimal saving decision of individuals who face a multiplicative risk. An individual is defined to be multiplicative risk prudent if multiplying a pure risk to her future wealth raises her optimal savings. We show that an individual is multiplicative risk prudent if and only if...

Building on Banker, Byzalov, and Plehn-Dujowich’s (2014) congestion cost theory, we model firms’ tradeoff between rigid cost structures and high inventory levels in reducing congestion costs caused by uncertain demand. We show that more inventory results in lower cost rigidity, while the...