The Long-Run Behavior of Debt and Equity Underwriting Spreads

Equity Underwriting Spreads at Commercial Bank Holding Companies and Investment Banks

The Short and Long Run Effects of Debt- Equity Ratios and Dividend Payout Ratios on Corporation Stock Prices

were of significant help at various stages of this study.

Private Equity and Long-Run Investment: The Case of Innovation

A long-standing controversy is whether LBOs relieve managers from shortterm pressures from public shareholders, or whether LBO funds themselves sacrifice long-term growth to boost short-term performance. We examine one form of long-term activities, namely investments in innovation as measured by patenting activity. Analyzing 472 LBO transactions, we find no evidence of any decrease in these act...

Debt, Equity and Warrants

This paper considers project financing under adverse selection and moral hazard and makes three contributions. First, the issue of combinations of debt and equity is explained as the outcome of the interaction between adverse selection and moral hazard. Second, it shows that, in the presence of moral hazard, adverse selection may result in the conversion of negative into positive NPV projects l...

Durable Consumption, Long-Run Risk and The Equity Premium

This paper develops the CCAPM model to allow for long-run risk in durable consumption. Allowing Epstein-Zin preferences to incorporate non-separability of durable and non-durable consumption in utility provides for an Euler equation which can be shown to provide a much better explanation of equity market features than either the basic CAPM or CCAPM. .The paper incorporates this discount factor ...