Firms, shareholders, and financial markets

Firms, Shareholders, and Financial Markets

We study the influence of the financial market on the decisions of firms in the real market. To that end, we present a model in which the shareholders portfolio selection of assets and the decisions of the publicly-traded firms are integrated through the market process. Financial access alters the objective function of the firms, and the market interaction of shareholders substantially influenc...

Financial Markets, Creation and Liquidation of Firms and Aggregate Dynamics

This paper models the impact of interest rate shocks on the creation and destruction of rms. The mechanism by which these shocks are transmitted across rms behavior is based on limited commitment to contractual arrangements. A rm's temptation to default limits the provision of credit by the bank. Credit constraints arise endogenously as part of the optimal long-term relationship between banks a...

Institutions, Financial Markets, and Firms' Choice of Debt Maturity

Dynamic Correlation between Oil Markets and Financial Markets and Oil and Petrochemical Industries in Iran

In this paper we study the effect of volatility in Brent oil prices on the important indices of financial markets in Iran, as well as the return on gold, from 2008 to 2018 using the Multivariate Exponential GARCH Model (MVEGARCH). We also use the ADCC-FIGARCH model to examine the asymmetric dynamic conditional correlation between Brent oil prices and financial markets in Iran. The results of th...

Voting in Assemblies of shareholders and Incomplete Markets