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...

This paper presents a dynamic model for the timing and terms of mergers, stock offers and cash offers when the output price for firms is stochastic and when firms have complete information. We show that takeovers motivated by increased returns to scale or by decreased unit production costs are...

Surveys of Chief Financial Officers show that some managers claim to pursue a target adjustment model while others claim to follow alternative financing models. We therefore estimate a model for debt dynamics in which the target adjustment and short-run flow-of-funds coefficients may vary across...

This paper studies the determinants and behavior of outstanding mortgage loan-to-value (LTV) ratios for a panel of 5,179 households in the pre-mortgage crisis period 1992-2005. We find that outstanding LTVs are driven by household characteristics, life-cycle effects and mortgage type...