Arbitrage

Why Don?t All Banks Practice Regulatory Arbitrage? Evidence from Usage of Trust Preferred Securities

We investigate why only some banks use regulatory arbitrage. We predict that banks wanting to be riskier than allowed by capital regulations (constrained banks) use regulatory arbitrage while others do not. We find support for this...

Where Do Firms Issue Debt?

Issuer Choice in Europe

Silence Is Golden: The European Company Statute as a Catalyst for Company Law Arbitrage

The Transactional Scope of Takeover Law in Comparative Perspective

The core activity regulated by takeover codes is the voluntary offer by a bidder addressed to all the shareholders of a target company (other than the bidder) to acquire their shares in order to give the bidder control of the company....

The Czech Societas Europaea Puzzle

The Societas Europaea: Good News for European Firms

Tilting the Balance Between Capital and Labor? The Effects of Regulatory Arbitrage in European Corporate Law on Employees

Feedback Effects, Asymmetric Trading, and the Limits to Arbitrage

We analyze strategic speculators' incentives to trade on information in a model where firm value is endogenous to trading, due to feedback from the financial market to corporate decisions. Trading reveals private information to...