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This study examines whether adoption in 2003 of FASB Interpretation No. 46/R (FIN 46), Consolidation of Variable Interest Entities – an Interpretation of ARB No. 51, changes the cost of capital for affected firms. Using comparative analysis on a broad sample of 11,719 firm-quarter observations...
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Recent economics literature shows renewed interest in models of Bertrand competition with cost uncertainty. We continue this reexamination and introduce cost correlation as a way to mitigate the asymmetry of information between firms facing Bertrand competition. We also allow firms to make an...
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