Asymmetric Information Research Papers - Academia.edu (original) (raw)

We empirically investigate the determinants of lenders concentration providing bank loans to European borrowers. We analyze the influence of loan and borrower characteristics but also legal enforcement variables that are expected to... more

We empirically investigate the determinants of lenders concentration providing bank loans to European borrowers. We analyze the influence of loan and borrower characteristics but also legal enforcement variables that are expected to influence the financial and strategic ...

The uprising of the pandemic COVID-19 has paralysed the whole Indian economy, and as a result the Indian stock market is severely affected too. The widely inclusive lockdown articulated on 24 th March 2020 by the Prime Minister as a... more

The uprising of the pandemic COVID-19 has paralysed the whole Indian economy, and as a result the Indian stock market is severely affected too. The widely inclusive lockdown articulated on 24 th March 2020 by the Prime Minister as a careful step against COVID-19, trailed by ensuing augmentations, has brought about a halt of all financial movement in the country. The objective of the study is to frame different asymmetric price volatility models for Selected Companies under Energy Sector using 1-min closing price from 15 th October 2019 to 15 th May 2020 to captivate the leverage effect of the pandemic. The asymmetric terms in the selected asymmetric models are providing sufficient proof that the stock price volatility of three companies out of six under NIFTY Energy i.e., BPCL, Power grid and Indian Oil Corporation are unfavourably influenced by the pandemic. The forecasting graphs for volatility of four companies have been plotted, reveals that there is consistency in the stock price returns of all these four companies but the graph of predicted variance of Indian Oil Corporation reveals that the volatility has been fluctuating drastically with many high peak variances or fluctuations during the 2 days of forecasted period.

In this review, I criticize the ability of popular asymmetric information-based models to explain the magnitude of the underpricing of initial public offerings (IPOs) that is observed. I suggest that the quantitative magnitude of... more

In this review, I criticize the ability of popular asymmetric information-based models to explain the magnitude of the underpricing of initial public offerings (IPOs) that is observed. I suggest that the quantitative magnitude of underpricing can be explained with a market structure in which underwriters want to underprice excessively, issuers are focused on services bundled with underwriting rather than on maximizing the offer proceeds, and there is limited competition between underwriters. Since the technology bubble burst in 2000, U.S. IPO volume has been low. Although regulatory burdens undoubtedly account for some of the decline, I suggest that much of the decline may be due to a structural shift that has lessened the profitability of small independent companies relative to their value as part of a larger, more established organization that can realize economies of scope. I also discuss the long-run performance literature. My interpretation of the evidence is that except for th...

Internationally active firms rely intensively on trade credits even though they are considered particularly expensive. This phenomenon has been little explored so far. Our theoretical analysis shows that trade credits can alleviate... more

Internationally active firms rely intensively on trade credits even though they are considered particularly expensive. This phenomenon has been little explored so far. Our theoretical analysis shows that trade credits can alleviate financial constraints arising from asymmetric information because they serve as a quality signal and reduce the uncertainty related to international transactions. We use unique survey data on German enterprises to test the effect of the use of trade credits on firms' exporting and importing behavior, both at the extensive and intensive margins. Our results support the assertion that trade credits have a positive impact on firms' exporting and importing activities.

This paper examines the possibility that regulation actually increases a monopolist’s cost-efficiency. When the firm’s cost-reducing effort depends on the output supplied, a binding price-cap, by compelling the monopolist to produce... more

This paper examines the possibility that regulation actually increases a monopolist’s cost-efficiency. When the firm’s cost-reducing effort depends on the output supplied, a binding price-cap, by compelling the monopolist to produce more, finally results in lower costs. On the basis of a two-period asymmetric information model with a repeated choice of effort, the paper demonstrates that regulation increases efficiency when the elasticity of demand is sufficiently low, even assuming very conservative preferences and a very poor information set for the regulator. Moreover, contrary to previous findings and conventional wisdom, we find that a periodical rate base review exerts also a positive effect on future cost-reducing effort countervailing the well known ratchet effect.

The aim of this paper is to study what is the best structure of a Board of Directors when collusive aspects between the Board and the CEO are taken into account. We analyze how shareholders should select the members of the Board in a... more

The aim of this paper is to study what is the best structure of a Board of Directors when collusive aspects between the Board and the CEO are taken into account. We analyze how shareholders should select the members of the Board in a framework with asymmetric information and uncertainty about the optimal projects for the …rm. In particular, we examine the optimal degree of independence of the Board from a shareholders perspective. This allows us to state when it is bene…cial for shareholders to have an insider-oriented board or an outsider oriented board with a majority of independent directors when collusion is a major threat.

The concept of information utilities under the Insolvency and Bankruptcy Code, 2016 was completely novel and without any parallels anywhere else in the world. It was meant to transform the Indian credit market by providing accurate and... more

The concept of information utilities under the Insolvency and Bankruptcy Code, 2016 was completely novel and without any parallels anywhere else in the world. It was meant to transform the Indian credit market by providing accurate and timely information about credit history and defaults, which would enable financial creditors to commence insolvency resolution process under the Code without cumbersome burdens of proof under the earlier regime. This paper studies the role and responsibilities of information utilities by tracing the evolution of the concept and the need for such agencies. It also looks at the envisaged competitive industry of information utilities and makes certain comments on the regulatory and legislative framework.

A tanulmány abból a megállapításból indul ki, hogy a szabályozás középpontjában az információs aszimmetria áll, a szabályozás történetét ennek az aszimmetriának a feloldásaként mutatja be. Áttekinti, hogy szabályozott ágazatok... more

A tanulmány abból a megállapításból indul ki, hogy a szabályozás középpontjában az információs aszimmetria áll, a szabályozás történetét ennek az aszimmetriának a feloldásaként mutatja be. Áttekinti, hogy szabályozott ágazatok születésének idő-szakában milyen feltételekkel alakult ki a szabályozás, miért és milyen információkat használtak fel. A nyilvánosság szabályozást segítő szerepe mellett a formalizált infor-mációgyűjtés kiépülését, a költségelemzéseket és a szabályozói számvitel kialakulá-sát is vizsgálja a szerző. Bemutatja a szabályozási folyamat legismertebb elemének az árszabályozásnak az információszerzés szempontjából áttekintett folyamatos át-alakulását, az ösztönző szabályozás bevezetését.

The article studies the optimal redistribution system, achieved by direct taxation, indirect taxation and public provision of the pseudo-necessary good, when individuals, who differ in productivity, can take hidden actions (tax evasion by... more

The article studies the optimal redistribution system, achieved by direct taxation, indirect taxation and public provision of the pseudo-necessary good, when individuals, who differ in productivity, can take hidden actions (tax evasion by moral hazard) and have hidden information (tax evasion by adverse selection). It proves that any Government willing to effectively reallocate resources among individuals has to undertake measures against tax evasion, i.e. to establish tax evasion fines.

Title in English: TOMASEVICIUS FILHO, Eduardo. The principle of good faith in Private Law. Sao Paulo: Almedina, 2020, 526 pages.

The intertemporal approach views the current-account balance as the outcome of forward-looking dynamic saving and investment decisions. This paper, a chapter in the forthcoming third volume of the Handbook of International Economics,... more

The intertemporal approach views the current-account balance as the outcome of forward-looking dynamic saving and investment decisions. This paper, a chapter in the forthcoming third volume of the Handbook of International Economics, surveys the theory and empirical work on the intertemporal approach as it has developed since the early 1980s. After reviewing the basic one-good, representative- consumer model, the paper