We develop and test a theory of the interaction between investors' heterogeneity, risk, transactions costs and trading volume. To test our model we take advantage of the specific nature of trading motives around the distribution of cash dividends namely the costly trading of tax shields. Consistent with the theory, we show that when trades occur because of differential valuation of cash flows a...

Frictions are introduced in the information structure of a cash-in-advance dynamic stochastic general equilibrium model with the interest of studying the impact of serially correlated monetary shocks on the variability of velocity. Possessing no analytical solution this dynamic environment, a projection method which parameterizes expectations and employs finite elements in the approximation of ...

Using the unique dataset of banking transactions data that contains 236 million transactions of 1.7 million …rms, I identify "spacemen", short-lived special purpose entities created for cash ‡ow diversion purposes. I estimate diversion in Russia as 11.3% of GDP in 2003 and 13.1% of GDP in 2004 that corresponds to tax evasion 4.6%-5.0% and 5.4%-5.8% of GDP accordingly. Based on transfers to "spa...

Due to the nature and costs of data collection, many realworld databases consist of large numbers of independent transactions. Finding evidence of structured groups of entities reflected in this data is a task aptly suited to Link Analysis. However, the databases usually must be restructured to allow effective search and analysis of the linkage structures hidden in the original transactions. Th...

This paper examines the determinants of the choice of financial advisors and their impact on the announcement effects of US acquirers in cross-border M&As. Two hypotheses are tested: one pertains to the acquiring firms’ home preference in selecting financial advisors, and the other relates to advisors’ experience in target countries. Evidence supports the home preference hypothesis in the selec...

Decentralized ledger-based currencies such as Bitcoin provide a means to construct payment systems without requiring a trusted bank. Removing this trust assumption comes at the significant cost of transaction privacy. A number of academic works have sought to improve the privacy offered by ledger-based currencies using anonymous electronic cash (e-cash) techniques. Unfortunately, this strong de...

We examine the effect of relationship-specific investment on the use of detailed contracts using data on transactions from a survey of Romanian firms. In those transactions, seller relationship-specific investment increases the amount of contractual detail, while buyer relationship-specific investment decreases it. We interpret these results using a hostages model applied to cash-flow and credi...

This paper presents an integrated analysis of production and financing decisions. We construct a model in which a cash storage unit is installed to manage the cash flows associated with production activities such as raw material procurement, process operating setup, inventory holding costs and finished product sales. Temporary financial investments are allowed to increase profit. The production...

The main approach of this study is to provide solutions to managers, economists, and tax auditors. To have a clearer perspective of the transactional relationships that distress the taxpayer transaction tax also help them to choose the best strategy to improve tax revenue. In this paper the fuzzy Delphi method was used to identify the indicators affecting suspicious bank accounts. The data coll...

Based on a survey of 1000 Hispanic and 1000 African-American business owners on the impacts e-commerce and e-cash are expected to have upon business practices, there were significant discrepancies between perceptions of these two groups regarding their ability to track and retain customers and to authenticate the source of e-cash payments. In addition, while both groups of owners agreed that e-...