We prove that in smooth Markovian continuous–time economies with potentially complete asset markets, Radner equilibria with endogenously complete markets exist. JEL subject classification: D52, D53, G12 2010 Mathematics Subject Classification: 91B50, 91G80

Article history: Received 8 February 2010 Available online 11 February 2010 JEL classification: D50 D51 D53 D61 E40 E50 E51 E52 E58

Available online 13 November 2014 This study examines the relationship between family firms and earnings management by considering the influence of board independence. Based on a sample of 379 listed high-technology firms over 7 years in Taiwan, we find that family firms are positively related to earnings management. Further, we find two interaction effects: (1) the proportion of independent di...

We test the effect of audit effort on earnings management using a unique database of hours worked by auditors on 9,738 audits in Greece between 1994 and 2002. When audit hours are lower, (1) abnormal accruals are more often positive than negative, (2) positive abnormal accruals are larger, and (3) companies are more likely to manage earnings upwards in order to meet or beat the zero earnings be...

This paper examines the relation between earnings management and corporate governance in China by introducing a tunneling perspective. We document systematic differences in earnings management across the universe of China's listed companies during 1999–2005, and empirically demonstrate that firms with higher corporate governance levels have lower levels of earnings management. We study two Chin...

In this paper we deal with the utility maximization problem with a general utility function. We derive a new approach in which we reduce the utility maximization problem with general utility to the study of a fully-coupled Forward-Backward Stochastic Differential Equation (FBSDE). AMS Subject Classification: Primary 60H10, 93E20 JEL Classification: C61, D52, D53

This paper examines the differences in accrual-based and real earnings management across countries from the perspective of investor protection. Following prior research (Leuz et al., 2003), we hypothesize that accrual-based earnings management is more constrained by strict discipline in countries with stronger investor protection. For real earnings management in countries with stronger investor...

Article history: Received 17 July 2014 Received in revised form 18 March 2015 Accepted 2 April 2015 Available online 9 April 2015 This study investigates whether earnings management reduces the level of value relevance and whether good corporate governance restrains earnings management. Using hand-collected data comprising 1012 firm-year observations from all companies listed on the Shanghai SS...

We examine the impact of risk-based portfolio constraints on asset prices in an exchange economy. We show that constrained agents scale down their portfolio and behave locally like power utility investors with risk aversion that depends on current market conditions. In contrast to previous results in the literature, we show that the imposition of constraints dampens fundamental shocks, challeng...

In this paper, we provide an alternative definition of NTU convexity, strongly ordinal convexity. We show that if a game is strongly ordinal convex, then any marginal worth vector is in the core, and any marginal contribution is increasing. Some economic examples satisfy this convexity. KeywordsCooperative game; Convex game; NTU game; Core; Supermodularity JEL classification codes: C62; D52; D53