Research Repository

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Firm boundaries and financing with opportunistic stakeholder behaviour (2019)
Journal Article
Aney, M. S., Appelbaum, E., & Banerji, S. (2019). Firm boundaries and financing with opportunistic stakeholder behaviour. Journal of Corporate Finance, doi:10.1016/j.jcorpfin.2018.12.003

We explore the impact of strategic behaviour of equity holders, debt holders and an opportunistic supplier of a critical input on the firm's capital structure, organisational design, and its outsourcing decision. We show that the supplier can trigger... Read More

Political connections, bailout in financial markets and firm value (2016)
Journal Article
Banerji, S., Duygun, M., & Shaban, M. (2018). Political connections, bailout in financial markets and firm value. Journal of Corporate Finance, 50, (388-401). doi:10.1016/j.jcorpfin.2016.12.001. ISSN 0929-1199

The paper shows that politically motivated interventions in the financial market in the form of bailing out borrowing firms reduce banks’ incentives to gather valuable information about firms’ projects. This loss of information is a hidden cost which... Read More

Universal banking, asymmetric information and the stock market (2016)
Journal Article
Banerji, S., & Basu, P. (2017). Universal banking, asymmetric information and the stock market. Economic Modelling, 60, doi:10.1016/j.econmod.2016.09.009. ISSN 0264-9993

This paper aims to explore the role of the universal banking system in contributing to the stock market bust in the wake of the financial crisis 2008–2009 when bankers might have incentive to hide information from shareholders. We set up a stylized m... Read More

Corporate cash holdings: causes and consequences (2015)
Journal Article
Amess, K., Banerji, S., & Lampousis, A. (2015). Corporate cash holdings: causes and consequences. International Review of Financial Analysis, 42, doi:10.1016/j.irfa.2015.09.007. ISSN 1057-5219

The considerable growth in corporate cash holdings around the world has prompted scholarly interest. Consequently, there is now a large academic literature examining cash holdings and their impact on corporate outcomes and firm values. This article r... Read More

Monitoring costs, credit constraints and entrepreneurship (2015)
Journal Article
Banerji, S., Raj, R. S., & Sen, K. (2016). Monitoring costs, credit constraints and entrepreneurship. Manchester School, 84(5), doi:10.1111/manc.12122. ISSN 1463-6786

Access to finance is seen as a binding constraint on the growth of household enterprises in developing countries. We develop a principal-agent model of a household enterprise and show that limited access to finance and monitoring costs constrain the... Read More

Borrower's moral hazard, risk premium, and welfare: a comparison of universal and stand-alone banking systems (2015)
Journal Article
Banerji, S., & Basu, P. (in press). Borrower's moral hazard, risk premium, and welfare: a comparison of universal and stand-alone banking systems. Journal of Economic Asymmetries, 12(1), doi:10.1016/j.jeca.2015.01.003. ISSN 1703-4949

Does the unification of retail and investment banking necessarily heighten risk in financial markets? Using a simple two period intertemporal model with borrower's moral hazard and uninsured risk, we argue that the integration in financial service ma... Read More