This paper develops a model of how the financial system is organized to most effectively create safe assets and analyzes its implications for asset prices, capital structure, and macroeconomic policy. In the model, financial intermediaries choose to invest in the lowest risk assets available in order to issue safe securities while minimizing their reliance on equity financing. Although househol...

I ran Insurance Company intends to raise its financial credit and render enhanced services to the insured and the public. The need to meet financial obligations arising from the claims requires determination of the optimum deposited claims reserve with banks. Therefore, the present research study aimed at finding the loss ratio (incurred losses to premiu...

BACKGROUND Recruitment and retention of health workers is a major concern. Policy initiatives emphasize financial incentives, despite mixed evidence of their effectiveness. Qualitative studies suggest that nurses especially may be more driven by altruistic motivations, but quantitative research has overlooked such values. This paper adds to the literature through characterizing the nature and d...

U niversity endowments are important and interesting institutions both in the investing community and society at large. First, they play a role in maintaining the academic excellence of many universities which rely heavily on income from their endowments. In recent years, well-heeled institutions such as Harvard and Princeton have used their deep pockets to increase admissions and reduce effect...

due to the fact that assets are recorded at their historical value and they may include unrealized gains (losses), managers may manipulate earnings through the sale of these assets and provide financial information which is not accurate and reliable. the aim of this study is to investigate the relationship between income from asset sales, earnings change and leverage of companies listed on tehr...

We study a model in which a special role for safe, short-term assets in facilitating financial intermediation encourages the private sector to issue these assets to supplement the public supply of safe, short-term assets, even though their role in providing liquidity can be put in jeopardy during financial panics that lead agents to question the low-risk nature of these assets. During “normal” ...

We develop a model of financial intermediation characterized by an inside agency problem such that asset managers, when they have access to high enough liquidity, “reach for yield” by overinvesting in risky assets and concurrently underinvesting in safer or medium-risk assets. The managers follow a pecking order whereby their first preference is to invest in risky assets; their second preferenc...

We review the international finance literature to assess the extent to which international factors affect financial asset demands and prices. International asset pricing models with mean-variance investors predict that an asset’s risk premium depends on its covariance with the world market portfolio and, possibly, with exchange rate changes. The existing empirical evidence shows that a country’...