Supplement to 'Market Selection with Differential Financial Constraints'

Supplement to “Market Signaling with Grades”

C Supplementary Appendix: More than Two Types Let us expand the type space to be {1, ..., N}, N > 2. The receivers’ prior, μ0, is a probability distribution with full support over the type space. When describing beliefs (be they prior, interim or final) we use superscripts to denote the probability assigned to the various types (e.g., μ0 is the probability the prior assigns to type t). We now a...

Supplement to " Financial Institutions , Technology

This supplement considers the role of trade in vertically differentiated final goods in the vintage human capital model, when countries differ in their borrowing constraints. Each new technology is a differentiated good of higher quality in the sense of Lancaster (1966).

Government–Financial Market Relations after EMU New Currency, New Constraints?

The European Monetary Union (EMU) has generated a variety of changes, including the loss of national monetary policy autonomy and the creation of deeper integrated intraEuropean markets for goods, services, and financial instruments. This article explores the extent to which EMU has changed the ways in which and the extent to which international financial markets influence national policy choic...

Financial Constraints and Corporate Disclosure: Evidence from Capital Market Segmentation∗

The sharp distinction drawn between firms rated narrowly above (BBB–) and below (BB+) the investment-grade cutoff provides variation in debt financing availability unrelated to firm fundamentals. We exploit this market segmentation to identify an asymmetric effect of debt capital supply on voluntary disclosure: BB+ firms step up disclosure in response to high-yield bond mutual fund outflows. Th...

Financial market crisis and financial market channel