A large amount of activity in the financial sector occurs in secondary financial markets,
where securities are traded among investors without capital flowing to firms. The stock …

Governments intervene in firms' lives in a variety of ways. To enhance the efficiency of
government intervention, many researchers and policy makers call for governments to make …

Many economic agents take corrective actions based on information inferred from market
prices of firms' securities. Examples include directors and activists intervening in the …

Banks, around the world, are subject to stringent regulations, the impact of which is
contested. This paper aims to present a comprehensive overview of the literature on banking …

We investigate whether information in credit default swap spreads (CDS) is useful for
assessing the default risk of large banks. Because of banks' special capital structure two …

In recent years, authorities from bank supervisors to firm managers or even terrorism fighters
have shown increasing interest in the extraction of information from market prices. We argue …

Various laws and policy proposals call for regulators to make use of the information reflected
in market prices. We focus on a leading example of such a proposal, namely that bank …

Banking is risky and prone to failure. Yet banking regulation is surprisingly not all that risk-
sensitive in practice. I show that when the bank has an informational advantage over the …

Early regulator interventions into problem banks is one of the key suggestions of Basel II.
However, no guidance is given on their design. To fill this gap, we outline an incentive …

Banking is risky and prone to failure. Yet bank regulation is surprisingly not all that risk-
sensitive in practice. We show that when the bank has an informational advantage over the …