Arbitrage
Working Paper
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 managers and...Read more
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 hypothesis...Read more
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. Around this...Read more