We examine whether Regulation FD has reduced the informativeness of analysts' information outputs. For a sample of financial analysts' earnings forecasts and recommendations released between October 23, 1999 and October 23, 2001, we show that in the post-Regulation period the absolute price...

We examine whether Regulation FD has reduced the informativeness of analysts' information outputs. For a sample of financial analysts' earnings forecasts and recommendations released in a two-year window around Regulation FD's effective date, we show that in the post-Regulation FD period the...

We show that multi-bank loan pools improve the risk-return profile of banks' loan business. Banks write simple contracts on the proceeds from pooled loan portfolios, taking into account the free-rider problems in joint loan production. Thus, banks benefit greatly from diversifying credit risk...

We show that multi-bank loan pools improve the risk-return profile of banks ̕loan business. Banks write simple contracts on the proceeds from pooled loan portfolios, taking into account the free-rider problems in joint loan production. Thus, banks benefit greatly from diversifying credit risk...

This paper is an early response to Campbell's (2006) call to analyze the role of financial intermediaries in household finance. We first sketch a basic theory of financial advice that proceeds from cognitive errors and costly information acquisition. We then derive hypotheses about honest and...

Liquidity premiums have been widely documented for equity and bond markets. However, there is a lack of easily implementable measures of systematic liquidity for bond markets, which are typically far less liquid. We show that a simple liquidity factor - based on the difference between corporate...

We show that multi-bank loan pools improve the risk-return profile of regional banks' loan business. Banks write simple contracts on the proceeds from pooled loan portfolios, taking into account the agency problems in joint loan production. Thereby, banks benefit from diversifying credit risk...