Author: Jorge Caballe VilellaPublisher:
ISBN:
Category : Economics - Penn dissertations
Languages : en
Pages : 151
Book Description
Imperfectly Competitive Financial Markets
Author: Jorge Caballe VilellaPublisher:
ISBN:
Category : Economics - Penn dissertations
Languages : en
Pages : 151
Book Description
Imperfect Competition in Financial Markets and Capital Structure
Author: Sergei GurievPublisher:
ISBN:
Category :
Languages : en
Pages : 35
Book Description
We consider a model of corporate finance with imperfectly competitive financial intermediaries. Firms can finance projects either via debt or via equity. Because of asymmetric information about firms' growth opportunities, equity financing involves a dilution cost. Nevertheless, equity emerges in equilibrium whenever financial intermediaries have sufficient market power. In the latter case, best firms issue debt while the less profitable firms are equity-financed. We also show that strategic interaction between oligopolistic intermediaries results in multiple equilibria. If one intermediary chooses to buy more debt, the price of debt decreases, so the best equity-issuing firms switch from equity to debt financing. This in turn decreases average quality of equity-financed pool, so other intermediaries also shift towards more debt.
Transmission of Information in Imperfectly Competitive Financial Markets
Author: Jordi CaballéPublisher:
ISBN:
Category : Insider trading in securities
Languages : en
Pages : 30
Book Description
Allocation, Information and Markets
Author: John EatwellPublisher: Springer
ISBN: 1349202150
Category : Business & Economics
Languages : en
Pages : 321
Book Description
This is an extract from the 4-volume dictionary of economics, a reference book which aims to define the subject of economics today. 1300 subject entries in the complete work cover the broad themes of economic theory. This volume concentrates on the topic of allocation information and markets.
Timing of Investment and Financing Decisions in Imperfectly Competitive Financial Markets
Author: Elazar BerkovitchTransmission of Information in Imperfectly Competitive Financial Markets
Author: Jordi Caballé VilellaPrice-Signal Relations in an Imperfectly Competitive Financial Markets with Public and Private Information
Author: Carolina Manzano TovarPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
In this paper we are interested in analyzing how the relation between public and private information affects the impact of a signal (either public or private) in the price in an imperfectly competitive financial market. This aspect has been examined by Lundholm (1988) in a competitive context. However, we show that when the errors on private and public signals are correlated the number of investors has an upper bound. Consequently, we believe that could be interesting to develop Lundholm's analysis in a noncompetitive framework.
How Markets Work and Fail, and What to Make of Them
Author: Bart NooteboomPublisher: Edward Elgar Publishing
ISBN: 1783477563
Category : Business & Economics
Languages : en
Pages : 193
Book Description
øIn this thought-provoking book, Bart Nooteboom offers a radical critique of the principal intellectual and moral assumptions underlying economic science, unravelling the notion of markets: how they work and fail, and how they may be redirected to bett
Financial Markets and Inflation Under Imperfect Information
Author: Mr.Jose De GregorioPublisher: International Monetary Fund
ISBN: 1451848358
Category : Business & Economics
Languages : en
Pages : 34
Book Description
This paper studies the effect of inflation on the operation of financial markets, and shows how the ability of financial intermediaries to distinguish among heterogenous firms is reduced as inflation rises. This point is illustrated by presenting a simple model where inflation affects firms’ productivity. In particular, productivity differentials narrow as inflation increases. This effect creates incentives for risky and less productive firms to behave as high productivity firms. At high rates of inflation this may result in financial intermediaries being unable to differentiate among customers.
Financial Super-markets
Author: Philippe J. MartinPublisher:
ISBN:
Category : Capital market
Languages : en
Pages : 52
Book Description
We introduce a new theoretical framework to analyze imperfectly competitive financial markets and trade in assets in an international context. We present a two-country macroeconomic model in which agents are risk averse, assets are imperfect substitutes, the number of financial assets is endogenous, and cross-border asset trade entails transaction costs. We show that demand effects have important implications for the link between market size, asset prices and financial market development. These effects are consistent with existing empirical evidence. Due to co-ordination failures, the extent of financial market incompleteness is inefficiently high. We also analyze the impact of domestic transaction costs and issuing costs on financial markets and returns.