Objective. This article reinvestigates the ‘‘catalytic’’ effects of IMF programs on investment controlling for the implementation of the program, allowing us to ascertain if capital markets respond to the mere announcement of a Fund program or its sustained positive implementation. Methods. Using a panel of data based on the experience of 106 developing countries entering Fund programs between ...

a r t i c l e i n f o a b s t r a c t In this paper we study the optimal design of credit derivative contracts when banks have private information about their ability in the loan market and are subject to capital requirements. First, we prove that when banks are subject to a maximum loss capital requirement the optimal signaling contract is a binary credit default basket. Second, we show that i...

In light of the various capital crises in the past few years, there has been a tendency to denigrate portfolio investment, while singing the praises of direct investment. Yet, it is also recognized that efficient capital markets help to mobilize financing for growth and development. Both direct and portfolio investment can promote sustainable growth in developing, and industrialized, economies,...

This paper proposes a general equilibrium model that aims at quantifying the distributive effects of anticipated inflation in an incomplete market economy with heterogeneous agents. Based on empirical evidence, this paper assumes a fixed cost to participate in financial markets, which in equilibrium generates a theory of money. Money is a return dominated asset, but also a costless mean to smoo...

2 I. Introduction The papers prepared for this volume focus on the important elements of the debate over transactions taxes for foreign exchange and international capital markets. The value added of this paper is intended to lie in drawing out the implications of the arguments for policy. The case for transactions taxes rests on judgments about a sequence of conditions, each of which is necessa...

commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for financing working capital and meeting short-term liabilities. it is one of the most important financial instruments that constitute a significant portion of issued debt securities in financial markets. nevertheless, commercial paper, like many other conventional financial instruments, has been st...

This study examines the contracting benefits of accounting conservatism on international debt and equity markets. Results show that firms domiciled in countries with more conservative financial reporting systems have significantly lower cost of debt and equity capital, after controlling for differences in legal institutions and securities regulations. I use one-year-ahead interest rate to measu...

(2015) Investing in low-carbon transitions: energy finance as an adaptive market. Climate Policy. This document is made available in accordance with publisher policies and may differ from the published version or from the version of record. If you wish to cite this item you are advised to consult the publisher's version. Please see the URL above for details on accessing the published version. C...

Financial markets in the past decade witnessed an enormous interest of IPO based financing of technology-based business. At the same time large sums of venture capital were provided to technology-oriented enterprises. In this article we review recent developments in the provision of equity for technology-based enterprises. After a brief introduction in the possibilities for financing enterprise...

The analysis of capital markets efficiency has attracted a considerable number of studies in empirical finance, but conflicting and inconclusive outcomes have been generated. The aim of this paper is to find any evidence that the selected emergent capital markets (eight emergent European and BRIC markets, namely Hungary, Romania, Estonia, Czech Republic, Brazil, Russia, India and China) abide b...