Search is embeded in an overlapping-generations model. Young people participate a centralized market and a decentralized market sequentially and olds only participates the centralized market. The demographic feature allows analytical tractability. In a series examples, positve inflation rates are Pareto optimal. JEL classification: E31

This article empirically examines the relationship between order sizes and spreads in the foreign exchange market based on a FX dealer’s quotes. It is found that spreads are independent of order sizes in the inter-dealer market, but they are negatively correlated in the customer market. JEL classification: F31; G14

SYNOPSIS Extant literature demonstrates that whistleblowing is associated with changes in the target’s financial reporting. This paper provides compelling evidence also affects peer firms’ Specifically, we find industry peers reduce their reporting aggressiveness following a allegation. deterrent effect stronger when firm geographically closer to target, and target share board member, predicted...

A firm facing employment protection will defend its market position more fiercely than a firm operating without such restrictions. However, ex ante it will be more reluctant to expand its market position. For the benchmark case of contest competition, the defensive effect dominates. A firm facing employment protection has a stronger average market position. JEL classification: D44, J63

s tructural change is defined as a change in the relative weight of the important constituents of the macro-economic indicator such as production, taxes, imports and exports, workforce etc. since the structure change is one of the main reasons for the growth and economic development of countries, the investigation of the trend of changes in economic important constituents is important. tax as a...

The aim of this work is to analyze the factors that help companies avoid liquidation following spirit Spanish insolvency law. This focuses on phase starting when file for bankruptcy and ending with completion common phase. We apply agency theory explain how administrators court characteristics influence outcome process (liquidation or reorganization). unique accounting data from 2,627 filed dur...

We investigate whether the top management of all legacy U.S. airlines used their quarterly earnings calls as a mode of communication with other airlines to coordinate output reduction (fewer passenger seats) on competitive routes. We build an original and novel dataset on the public communication content from the earnings calls, and use Natural Language Processing techniques from computational ...

In this paper, we apply Markowitz’s approach of portfolio selection to government bond portfolios. As a main feature of our analysis, we use term structure models to estimate expected returns, return variances, and covariances of different bonds. Our empirical study for the German market shows that a small number of risky bonds is sufficient to reach very promising predicted risk-return profile...

The paper investigates the impact on credit risk of capital structure choices driven by firm’s investments and financing decisions. We propose a realistic dynamic structural model featuring endogenous investment, capital structure and default. We calibrate the model on accounting and market data. Using simulation, we find that, credit spreads as well as other standard metrics of credit worthine...