Publications

This paper examines the entry decisions of generic pharmaceutical manufacturers into markets opened by patent expiration. In particular, I examine the role of pre-expiration brand advertising to see if it deters generic entry. Other drug…

When commercial banks make loans to firms and also underwrite securities, does this hamper or enhance their role as certifiers of firm value? ¶his paper examines empirically the pricing of bank-underwritten securities as compared to investment-…

The theories of supermodular optimization and games provide a framework for the analysis of systems marked by complementarity. We summarize the principal results of these theories and indicate their usefulness by applying them to study the shift…

Recent research has demonstrated that, contrary to the assumption of value maximization, consumer choices are influenced by the configuration of the set of options under consideration (“context effects”). We examine whether two types of context…

This paper demonstrates that, in a simple setting with managerial concern for reputation and asymmetric information on ability, most managers may refrain from undertaking innovations that stochastically dominate an industry standard. Common…

This article argues that the size-related regularities in asset prices should not be regarded as anomalies. Indeed, the opposite result is demonstrated. Namely, a truly anomalous regularity would be if an inverse relation between size and return…

In this paper we apply ideas to the specific issue of deposit mobilization. This issue is central to the debate on financial deepening. Mobilizing deposits is crucial in many developing countries. Domestic funds provide a cheap and reliable…

This paper presents an empirical analysis of the value of a coordinated market exchange mechanism. I present a model of efficient trading mechanisms under uncertainty, and develop a measure of the value of an interfirm trade agreement in the…

We analyze intraday patterns for a set of cross-listed securities in four markets: the London Stock Exchange (LSE), the NYSE, AMEX, and Nasdaq. Differences in intraday patterns are shown to extend across both geographical and structural…

Returns in emerging capital markets are very different from returns in developed markets. While most previous research has focused on average returns, we analyze the volatility of the returns in emerging equity markets. We characterize the time…

State tort laws that govern the apportionment of damages from accidents often bar potential plaintiffs who played even a minor causal role in the accident from recovering damages from other culpable parties. However, anecdotal evidence suggests…

This paper examines a set of financial policies, call financial restraint, that address financial market stability and growth in an initial environment of low financial deepening. Unlike with financial repression, where the government extracts…

The performance and the effectiveness of financial institutions in an economy are an important consideration for policy makers concerned about economic growth. Growths, after all, is heavily dependent on investment, and a significant fraction of…

This paper is a response to suggestions by the GASB that academics are in a position to contribute to its standard setting process by viewing financial reporting issues in a broader context than that associated with addressing specific issues…

We model the effects of alternative coordination structures on the performance of a firm that faces uncertain demand in multiple horizontal markets. The firm’s coordination structure is jointly determined by its decision-rights structure and by…