This paper studies the properties and determinants of managers’ multi-year financial forecasts. We ask whether, by how much, and why biases in managers’ forecasts of revenues, expenses and profits depend on the forecasting horizon and the verifiability of firms’ assets. Since public companies rarely divulge their internal multi-year financial projections to outsiders, we use the oneto five-year...

It is commonly argued that banks play a special role in the financial system because they resolve an important information asymmetry. The recent development of an active secondary market for loans could however potentially diminish this special role. This study utilizes a unique dataset of secondary market loan prices to examine this issue. We find that new loan announcements are associated wit...

Analysts in a bank’s research department cover both, firms which have no relationship to the bank as well as companies in which the bank has a strategic interest. Officially, banks have to establish a Chinese Wall around the research department to allow the analysts to work independently and to avoid the flow of insider information. We examine long-term bank-firm relationships using ownership d...

We present the results from an XMM-Newton observation (January 24, 2001) of the bright Seyfert 1 galaxy ESO 198-G24 (z=0.045). We found that this Seyfert has an intrinsic 2–10 keV luminosity of about 10 erg s−1. This source shows no intrinsic absorption in addition to the Galactic absorption (NH ∼3×1020 cm−2). We found both with EPIC and RGS that this source possesses significantly steeper spec...

This paper empirically analyzes the initial and after-market returns for the Turkish initial public offerings (IPOs) to provide an emerging market case of international evidence on performances of IPOs. The sample consists of 163 firms listed and traded on the Istanbul Stock Exchange during the period of 1990–1996. The results show that the Turkish IPOs are underpriced on initial trading day on...

We develop a model of entrepreneurial choice in which some individuals have a comparative advantage in starting new businesses. Ef…ciency dictates that entrepreneurs should specialize in start-ups and sell successful start-ups to professional managers. We consider the role of capital gains taxation. Capital gains taxes create an incentive for entrepreneurs to manage their own enterprises and av...

Trust is an important determinant of start-up fi nancing. In a simple agentbased model it is determined what the best trusting strategy is for a collective of investors and whether it is rational for an individual investor to deviate from this collective optimum. Trust depends on a measure of social distance and is the precondition for investment. Trust increases and decreases based on whether ...

With an overall lack of gender and ethnic diversity in the innovation sector documented in Gompers and Wang (2017), we ask the natural next question: Does increased diversity lead to better firm performances? In this paper, we attempt to answer this question using a unique dataset of the gender of venture capital partners’ children. First, we find strong evidence that parenting more daughters l...

N,N-dlmethylguanosine (mJG) is a characteristic nucleoslde that is found in the bend between the dlhydrouridine (D) stem and the anticodon (AC) stem in over 80% of the eukaryotic tRNA species having guanosine at position 26 (G26). However, since a few eukaryotic tRNAs have an unmodified G in that position, G26 is a necessary but not a sufficient condition for dlmethylation. In yeast t R N A ^ G...

The positive transcription elongation factor b (P-TEFb), a complex of Cdk9 and cyclin T1/T2, stimulates transcription by phosphorylating RNA polymerase II. The 7SK small nuclear RNA, in cooperation with HEXIM1 protein, functions as a general polymerase II transcription regulator by sequestering P-TEFb into a large kinase-inactive 7SK/HEXIM1/P-TEFb complex. Here, determination and characterizati...