The aim of the article is to analyse the effectiveness of the asset purchase programs implemented by the European Central Bank during the sovereign debt crisis of some euro area countries (i.e. Securities Markets Programme i Outright Monetary Transactions). We examine how those programs...

This paper introduces a class of real options, market dominance options (MDOs), to describe corporate strategic investments in the securities of other firms and M&A processes. An implied corporate project risk measure is extracted from the asset structure and used in real option valuation. The...

In addition to its basic capital-raising function, equity started to be used in a variety of corporate operations. Companies enter into contracts linked to their own stock in the process of activities related to mergers and acquisitions, compensation or credit-capacity increases. There is...

This paper deals with the problem of nonstationarity of regressors in binary choice model. The limit distribution of the ML-estimator is mixed normal, but restriction testing shall not be based on standard t-statistic. The results of the conducted Monte Carlo experiment demonstrate that the true...

A necessary and sufficient condition for global stability of dynamic models is summability to one of the long-run elasticities and cointegration. The short-run coefficients automatically satisfy the homogeneity condition. A relevant restriction has to be imposed in the parameter estimation...

Evolution of speculative attack models show certain progress in developing idea of the role of expectations in the crisis mechanism. Obstfeld (1996) defined expectations as fully exogenous. Morris and Shin (1998) endogenised the expectations with respect to noise leaving information significance...