The second volume of the series contains a combination of theoretical and empirical studies of issues in financial economics, investments, and banking authored by leading researchers in the US and Europe. Specific topics examined include asset pricing, corporate governance, dividend policy, pricing of financial services, portfolio theory, interest rate risk, capital structure, diversification strategies, and credit risk modelling. In addition to theoretical and empirical papers included in the volume, two represent applied articles written from a regulatory perspective by practising regulators.
On equilibrium asset prices when markets are incomplete (V. Madrigal, S.D. Smith). Managers block-holders and takeovers (S.A. Ravid and M. Spiegel). Monies and Banking (J. Seater). Dividend policy and clientele rationality (L.B. Nelson). Pricing of transaction services: The distortionary effects of taxation (J. Tarkka). Equity returns and inflation: The puzzling long lags (J.R. Lothian, C. McCarthy). Swapping default risk for interest rate risk: The rise of fixed rate mortgage loans in Hong Kong (J. He, M. Lu). Firms' inventory investments, financial conditions and banking crisis (B. Vale). The Dynamics of capital structure: Evidence from Swedish micro and small firms (A. Hasmati). Eggs in too few baskets: The impact of loan concentration on bank-sector systematic risk (B. Wilson, G. Caprio Jr.). Shrinking size premia at the London stock exchange (L. Becchetti, L Cavalo). The risk/return effects of loan portfolio diversification: An empirical test based on Italian banks (A. Resti). Determinants of leverage and access to credit: Evidence on western and eastern European countries (L. Weill). Credit risk in the traditional banking book (C. Zazzara).