Results 1 - 10 of 6,275

Separation of ownership and control

by Eugene F. Fama, Michael C. Jensen - JOURNAL OF LAW AND ECONOMICS , 1983
"... This paper analyzes the survival of organizations in which decision agents do not bear a major share of the wealth effects of their decisions. This is what the literature on large corporations calls separation of “ownership” and “control.” Such separation of decision and risk bearing functio ..."
Abstract - Cited by 1661 (8 self) - Add to MetaCart
functions is also common to organizations like large professional partnerships, financial mutuals and nonprofits. We contend that separation of decision and risk bearing functions survives in these organizations in part because of the benefits of specialization of management and risk bearing but also

Investor psychology and security market under- and overreactions

by Kent Daniel, David Hirshleifer - Journal of Finance , 1998
"... We propose a theory of securities market under- and overreactions based on two well-known psychological biases: investor overconfidence about the precision of private information; and biased self-attribution, which causes asymmetric shifts in investors ’ confidence as a function of their investment ..."
Abstract - Cited by 698 (43 self) - Add to MetaCart
We propose a theory of securities market under- and overreactions based on two well-known psychological biases: investor overconfidence about the precision of private information; and biased self-attribution, which causes asymmetric shifts in investors ’ confidence as a function of their investment

The Determinants of Credit Spread Changes.

by Pierre Collin-Dufresne , Robert S Goldstein , J Spencer Martin , Gurdip Bakshi , Greg Bauer , Dave Brown , Francesca Carrieri , Peter Christoffersen , Susan Christoffersen , Greg Duffee , Darrell Duffie , Vihang Errunza , Gifford Fong , Mike Gallmeyer , Laurent Gauthier , Rick Green , John Griffin , Jean Helwege , Kris Jacobs , Chris Jones , Andrew Karolyi , Dilip Madan , David Mauer , Erwan Morellec , Federico Nardari , N R Prabhala , Tony Sanders , Sergei Sarkissian , Bill Schwert , Ken Singleton , Chester Spatt , René Stulz - Journal of Finance , 2001
"... ABSTRACT Using dealer's quotes and transactions prices on straight industrial bonds, we investigate the determinants of credit spread changes. Variables that should in theory determine credit spread changes have rather limited explanatory power. Further, the residuals from this regression are ..."
Abstract - Cited by 422 (2 self) - Add to MetaCart
are highly crosscorrelated, and principal components analysis implies they are mostly driven by a single common factor. Although we consider several macro-economic and financial variables as candidate proxies, we cannot explain this common systematic component. Our results suggest that monthly credit spread

Does function follow organizational form? Evidence from the lending practices of large and small banks.

by Allen N Berger , Nathan H Miller , Mitchell A Petersen , Raghuram G Rajan , Jeremy C Stein - Journal of Financial Economics , 2005
"... Abstract: Theories based on incomplete contracting suggest that small organizations may do better than large organizations in activities that require the processing of soft information. We explore this idea in the context of bank lending to small firms, an activity that is typically thought of as r ..."
Abstract - Cited by 359 (29 self) - Add to MetaCart
of as relying heavily on soft information. We find that large banks are less willing than small banks to lend to informationally "difficult" credits, such as firms that do not keep formal financial records. Moreover, controlling for the endogeneity of bank-firm matching, large banks lend at a greater

Equilibrium and welfare in markets with financially constrained arbitrageurs

by Denis Gromb , Dimitri Vayanos , 2002
"... We propose a multiperiod model in which competitive arbitrageurs exploit discrepancies between the prices of two identical risky assets traded in segmented markets. Arbitrageurs need to collateralize separately their positions in each asset, and this implies a financial constraint limiting positions ..."
Abstract - Cited by 272 (21 self) - Add to MetaCart
We propose a multiperiod model in which competitive arbitrageurs exploit discrepancies between the prices of two identical risky assets traded in segmented markets. Arbitrageurs need to collateralize separately their positions in each asset, and this implies a financial constraint limiting

Gender, Agricultural Productivity and the Theory of the Household

by Christopher Udry, I Thank Joe Altonji, Richard Blundell, Bob Evenson, Alan Frishman, Jan Gunning, Michael Kevane, Patrick Francois, Robert Pollak - Timbergen Institute Discussion Paper , 1994
"... preliminary draft. I have benefitted from the comments of participants at a number of seminars. Financial support from the National Science Foundation is gratefully Virtually all models of the household have the minimal implication that the equilibrium allocation of resources is Pareto efficient. Wi ..."
Abstract - Cited by 318 (7 self) - Add to MetaCart
preliminary draft. I have benefitted from the comments of participants at a number of seminars. Financial support from the National Science Foundation is gratefully Virtually all models of the household have the minimal implication that the equilibrium allocation of resources is Pareto efficient

Law, Finance and Firm Growth

by Asli Demirgüc-Kunt, Vojislav Maksimovic - Journal of Finance , 1998
"... We investigate how differences in legal and financial systems affect firms' use of external financing to fund growth. We show that in countries whose legal systems score high on an efficiency index, a greater proportion of firms use long-term external financing. An active, though not necessaril ..."
Abstract - Cited by 295 (18 self) - Add to MetaCart
We investigate how differences in legal and financial systems affect firms' use of external financing to fund growth. We show that in countries whose legal systems score high on an efficiency index, a greater proportion of firms use long-term external financing. An active, though

The Asymptotic Elasticity of Utility Functions and Optimal Investment in Incomplete Markets

by D. Kramkov, W. Schachermayer - Annals of Applied Probability , 1997
"... . The paper studies the problem of maximizing the expected utility of terminal wealth in the framework of a general incomplete semimartingale model of a financial market. We show that the necessary and sufficient condition on a utility function for the validity of several key assertions of the theor ..."
Abstract - Cited by 264 (19 self) - Add to MetaCart
. The paper studies the problem of maximizing the expected utility of terminal wealth in the framework of a general incomplete semimartingale model of a financial market. We show that the necessary and sufficient condition on a utility function for the validity of several key assertions

International Institutions for Reducing Global Financial Instability

by Kenneth Rogoff - JOURNAL OF ECONOMIC PERSPECTIVES—VOLUME 13, NUMBER 4—FALL 1999—PAGES 21–42 , 1999
"... It is hard to open a business newspaper or magazine these days without confronting another sweeping proposal to reform the “international financial architecture.” George Soros (1998) has called for the formation of an international deposit insurance corporation, while Jeffrey Sachs (1995) advocates ..."
Abstract - Cited by 173 (3 self) - Add to MetaCart
It is hard to open a business newspaper or magazine these days without confronting another sweeping proposal to reform the “international financial architecture.” George Soros (1998) has called for the formation of an international deposit insurance corporation, while Jeffrey Sachs (1995) advocates

A Comparative Anatomy of Credit-Risk Models

by Michael B. Gordy - Journal of Banking and Finance
"... Within the past two years, important advances have been made in modeling credit risk at the portfolio level. Practitioners and policy makers have invested in implementing and exploring a variety of new models individually. Less progress has been made, however, with comparative analyses. Direct compa ..."
Abstract - Cited by 227 (9 self) - Add to MetaCart
comparison often is not straightforward, because the different models may be presented within rather different mathematical frameworks. This paper offers a comparative anatomy of two especially influential benchmarks for credit risk models, J.P. Morgan’s CreditMetrics and Credit Suisse Financial Product’s
Results 1 - 10 of 6,275