In this paper, we model price dispersion effects in over-the-counter (OTC) markets to show that in the presence of inventory risk for dealers and search costs for investors, traded prices may deviate from the expected market valuation of an asset. We interpret this deviation as a liquidity effect and develop a new liquidity measure quantifying the price dispersion in the context of the US corpo...

In the wake of the global financial crisis, member jurisdictions of the G-20 have embarked upon an ambitious program of reforms to the structure and operation of financial markets. One key element of the reform program is to improve the management of counterparty risk and reduce interconnectedness in over-the-counter (OTC) derivative markets by encouraging greater use of centralised financial m...

We examine the announcement period stock returns for 179 over-the-counter (OTC) firms that issue common stock to reduce nonconvertible debt. We find that small OTC firms experience returns that are significantly more negative than large OTC firms. Regression tests reveal that firm size is a significant factor in accounting for stock returns. Other tests establish firm size as a dominant effect....

Advertising is an area that is covered by many researches, however, over-the-counter reactions to this important marketing tool has not yet been touched. This article present an exploratory study on this market segment as it respond to the marketing mix involved in the launching of an over-the-counter brand originally successful in the ethical market. The author found that advertising passes tw...

Objectives This analysis aims at determining how many OTCs were reimbursed before the exclusion and how many of them and under what conditions of reimbursement remained to be reimbursed. The second objective of the analysis is to estimate the financial effect of exclusion on the payers and patients. The third objective is to describe what type of OTCs are reimbursed and under what conditions of...

We study a model of interbank credit where physical and informational frictions limit the opportunities for intertemporal trade among banks and outside investors. Banks obtain loans in an over-the-counter market (involving search, bilateral matching, and negotiations over the terms of the loan) and hold assets of heterogeneous quality that in turn determine their ability to repay those loans. W...