All Outputs (10)

Can participation in IMF programs facilitate sovereign debt rescheduling? The role of program size (2024)
Journal Article

We develop a theoretical model to explain the possible inverted U-shaped relationship between IMF loan size and the probability of sovereign debt rescheduling. Given that the IMF is a de facto senior creditor, borrowing too much from the IMF leaves a... Read More about Can participation in IMF programs facilitate sovereign debt rescheduling? The role of program size.

Political connections, informational asymmetry, and the efficient resolution of financial distress (2022)
Journal Article

We show that securities issued by a distressed firm, often through exchange offers, provide the most efficient resolution of financial restructuring. Information asymmetry between the firm-bank coalition and small bondholders gives rise to other form... Read More about Political connections, informational asymmetry, and the efficient resolution of financial distress.

Money as a weapon: Financing a winner-take-all competition (2020)
Journal Article

We study capital structure of pioneering startup firms who are often credited with opening of new markets and niches in the digital era and often face the threat of potential entry of successful, cash-rich firms from adjacent markets. Our analysis is... Read More about Money as a weapon: Financing a winner-take-all competition.

Firm boundaries and financing with opportunistic stakeholder behaviour (2019)
Journal Article

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 about Firm boundaries and financing with opportunistic stakeholder behaviour.

Institutions, governance and finance in a globally connected environment (2018)
Journal Article

Political connections, bailout in financial markets and firm value (2016)
Journal Article

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 about Political connections, bailout in financial markets and firm value.

Universal banking, asymmetric information and the stock market (2016)
Journal Article

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 about Universal banking, asymmetric information and the stock market.

Corporate cash holdings: causes and consequences (2015)
Journal Article

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 about Corporate cash holdings: causes and consequences.

Monitoring costs, credit constraints and entrepreneurship (2015)
Journal Article

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 about Monitoring costs, credit constraints and entrepreneurship.

Borrower's moral hazard, risk premium, and welfare: a comparison of universal and stand-alone banking systems (2015)
Journal Article

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 about Borrower's moral hazard, risk premium, and welfare: a comparison of universal and stand-alone banking systems.