1.1 Background The risk focused examination process has been adopted to direct the
inspection process to the more risk areas of both operations and business. Skills in risk …

Credit default swaps (CDS) have been growing in importance in the global financial
markets. However, their role has been hotly debated, in industry and academia, particularly …

Optimal dynamic capital structure choice is fundamentally a problem of commitment. In a
standard trade‐off setting with shareholder‐debtholder agency conflicts, full commitment …

We provide a synthesis of the empirical evidence on market liquidity. The liquidity
measurement literature has established standard measures of liquidity that apply to broad …

We find that manufacturing firms adopt more conservative capital structures in response to
the Nitrogen Oxides (NOx) Budget Trading Program (NBP) of 2004, a regional cap-and …

Using a measure of operating leverage that directly reflects the importance of fixed operating
costs in firms' cost structures, we investigate why operating leverage is related to financial …

We present a novel empirical benchmark for analyzing credit risk using “pseudo firms” that
purchase traded assets financed with equity and zero-coupon bonds. By no-arbitrage …

Financial covenants influence firm behavior by state-contingently allocating decision rights. I
develop a quantitative model with long-term debt where shareholders cannot commit to not …

This paper examines the role of corporate social performance in the CDS market, with a
focus on the differential effect conditional on the lengths of time horizons. We find that firm's …

In this paper, we embed optimal contracting between the manager and equity holders into
Leland-Toft endogenous structural credit risk model to study the impact of moral hazard on …