MoneyScience News |
- Published / Preprint: The Cross-Section of Credit Risk Premia and Equity Returns
- Published / Preprint: Legal Investor Protection and Takeovers
- Published / Preprint: Labor Mobility:Implications for Asset Pricing
- Blog Post: TheAlephBlog: A More Robust Career in Investment Banking
- Blog Post: TheFinancialServicesClub: SEPA: The proof of the pudding is in the testing
Published / Preprint: The Cross-Section of Credit Risk Premia and Equity Returns Posted: 16 Jan 2014 07:47 AM PST We explore the link between a firm's stock returns and credit risk using a simple insight from structural models following Merton (1974): risk premia on equity and credit instruments are related because all claims on assets must earn the same compensation per unit of risk. Consistent with theory, we find that firms' stock returns increase with credit risk premia estimated from CDS spreads. Credit... Visit MoneyScience for the Complete Article. |
Published / Preprint: Legal Investor Protection and Takeovers Posted: 16 Jan 2014 07:47 AM PST This paper examines the role of legal investor protection for the efficiency of the market for corporate control when bidders are financially constrained. In the model, stronger legal investor protection increases bidders' outside funding capacity. However, absent effective bidding competition, this does not improve efficiency, as the bid price, and thus bidders' need for funds, increases... Visit MoneyScience for the Complete Article. |
Published / Preprint: Labor Mobility:Implications for Asset Pricing Posted: 16 Jan 2014 07:47 AM PST Labor mobility is the flexibility of workers to walk away from an industry in response to better opportunities. I develop a model in which labor flows make bad times worse for shareholders who are left with capital that is less productive. The model shows that firms face greater operating leverage by providing flexibility to mobile workers. I construct an empirical measure of labor mobility... Visit MoneyScience for the Complete Article. |
Blog Post: TheAlephBlog: A More Robust Career in Investment Banking Posted: 16 Jan 2014 04:22 AM PST |
Blog Post: TheFinancialServicesClub: SEPA: The proof of the pudding is in the testing Posted: 16 Jan 2014 04:20 AM PST |
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