Efficiency of financial markets is one of the most studied subjects in theoretical finance. Formalization of this idea is realised by the random walk model. Numerous tests have been developed to validate the hypothesis of identically and independently distributed innovations. But the results of...

The study reported here focused on determining what methods financial analysts use for the valuation of Initial Public Offerings. The conclusion is that practices have moved with the times and that “real” considerations are more and more often used to obtain the market value of the firm. The...

Controlled firms are in a framework where private benefits create a buffer between public earnings and economic profitability. We focus on debt leverage in the type II agency conflict between the controlling shareholder and outside investors. We use a simple discrete model comparing the capital...

We investigate the link between employee ownership and price levels of stocks. Using a comprehensive sample of firms in the Société des Bourses Françaises (SBF) 120 Index from 2000 to 2007, we document a negative correlation between share price levels and employee ownership. This suggests...

In the theoretical framework of corporate governance this article studies the efficiency of the control exerted by the ownership structure and the board of directors on managers. The confrontation of entrenchment theory and agency theory allows to determine the necessary conditions of the...

This article analyses an individual microcredit program developed in Rio’s shantytowns. We study its selection criteria and the determinants of borrowers’ repayment performance. More specifically, this work aims to study the link between informality and credit discipline. First, we question...

In this paper, we take up the analysis of a principal/agent model with moral hazard introduced by Pagès (J. Financ. Intermed. doi:10.1016/j.jfi.2012.06.001, 2012), with optimal contracting between competitive investors and an impatient bank monitoring a pool of long-term loans subject to...

The purpose of this working paper is to understand why banks reject the majority of requests for productive investment finance coming from local enterprises in Cameroon. The first section presents the specific characteristics of the credit markets and various models to explain the rationing of...