infonet-economy

This paper introduces and analyzes an evolutionary model of a financial market with a risk-free asset. Focus is on the study of local stability of the wealth dynamics through the application of recent results on the linearization and stability of random dynamical systems (Evstigneev, Pirogov and Schenk-Hoppé, Proceedings of the American Mathematical Society 139, 1061-1072, 2011)....

We argue that there is a connection between the interbank market for liquidity and the broader financial markets, which has its basis in demand for liquidity by banks. Tightness in the interbank market for liquidity leads banks to engage in what we term “liquidity pull-back,” which involves selling financial assets either by banks directly or by levered investors. Empirical tests...

We study a continuous-time principal–agent model in which a risk-neutral agent withlimited liability must exert unobservable effort to reduce the likelihood of large but rel- atively infrequent losses. Firm size can be decreased at no cost or increased subject to adjustment costs. In the optimal contract, investment takes place only if a long enough period of time elapses with no...

Das Earnings Management der Unternehmen ist seit vielen Jahren ein beliebter Untersuchungsgegenstand. Seine Aktualität lässt sich an zahllosen Bilanzskandalen der letzten Jahre ablesen. Um (strategische) Rechnungslegungspolitik und -delikte zu verhindern, wurden Methoden zur Aufdeckung ausgearbeitet. Jede Methode hat ihre Stärken; der sichere Nachweis ist in der Regel aber unmöglich...

This article examines the recent regulatory developments with regard to short selling. Short selling regulation is an important factor in firm governance because it affects the way in which firms are subject to market discipline. As the financial crisis has attracted regulators’ notice to short selling once again, it is important to understand the fundamental legal and economic...

Studying a critical value function $\vi$ in parametric nonlinear programming, we recall conditions guaranteeing that $\vi$ is a $C^{1,1}$ function and derive second order Taylor expansion formulas including second-order terms in the form of certain generalized derivatives of $D \vi$. Several specializations and applications are discussed. These results are understood as supplements...

Miliz heisst freiwilliges Engagement. Verschiedene Beobachtungen deuten darauf hin, dass dieses zunehmend unter Druck kommt. Erodiert die Freiwilligkeit, oder ist es der Arbeitsmarkt, der solche Engagements nicht mehr zulässt? Vergleicht man die Einkommensverläufe von jüngeren Milizkadern der Armee mit Nichtkadern, so zeigt sich, dass sich eine militärische Weiterausbildung auf das...