Publications
in Main Journals
How
(Not) to Pay for Advice: A Framework for Consumer Financial Protection
(with M. Ottaviani), Journal of Financial
Economics, forthcoming
Loan
Prospecting
(with F. Heider), Review of Financial Studies, forthcoming
CEO Replacement under Private Information
(with H.Müller), Review of Financial Studies,
2010, 23(8), 2935-2969
Early-Stage Financing and Firm Growth in New
Industries
(with H. Müller), Journal of Financial Economics, 2009, 93(2),
276-291
Bank Capital Structure and Credit Decisions
(with H. Müller), Journal of Financial Intermediation, 2008,
17(3), 295-314
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“Irresponsible Lending”
with a Better Informed Lender
Economic
Journal, 2008, 118(532), 1499-1519
(previously
circulated as: Consumer Lending When Lenders are More Sophisticated
Than Households)
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Innovation,
Endogenous Overinvestment, and Incentive Pay
(with M. Klein), Rand Journal of Economics, 2007, 38(4),
881-904
“In a setting where capital budgeting crucially relies on
the information provided by (division) managers we study the role of
incentive contracts and the implications of creating an internal
capital market. Various predictions linking incentive pay to
investment decisions are obtained.”
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Financing a Portfolio of Projects
(with F.
Münnich and H. Müller), Review of Financial Studies, 2007, 20(4),
1289-1325
(previously entitled “The Benefits of Shallow Pockets”)
“The paper takes a portfolio perspective to real
investments, with a particular application to venture capital,
determining the optimal loading of a fund as a function of the
characteristics of the financed projects.”
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A
Lender-Based Theory of Collateral
(with H. Müller), Journal of Financial Economics, 2007, 84(3),
826-859
“We use an informed-lender approach to obtain a novel theory of
the optimal use of collateral. The theory is in line with stylized
facts on the correlation between collateralization and riskiness. New
implications on the relation between collateral and loan market
competition are obtained.”
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Informed
Lending and Security Design
(with H. Müller), Journal of Finance, 2006, 61(5), 2137-2162
“Optimal security design is undertaken in a novel framework
where lenders possess to some extent better information than their
(small business) borrowers. We obtain conditions for when debt or
levered equity are optimal, mirroring the use of these contracts in
bank or venture capital financing. Conditions are obtained for when
lenders are too conservative or too aggressive.”
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Conglomerate Entrenchment under Optimal Financial
Contracting
(with A. Faure-Grimaud), American Economic Review, 2005,
95(3), 850-861
“The “deep-pocket” argument is revisited in a framework of
optimal financial contracts and under the operation of an internal
capital markets. Conditions are derived for when being part of a
conglomerate both shields a business unit from predatory activity and
increases own incentives to engage in predation.”
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Incentives in Internal Capital Markets
(with C. Laux), Rand Journal of Economics, 2005, 36(1),
215-228
“The paper analyzes what implications an internal
capital market has on the incentives to generate new growth
opportunities. Winner picking can both increase and stifle
incentives, which gives rise to a theory of the optimal project mix
inside a firm.”
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The Effect of Capital Market Characteristics on
the Value of Start-Up Firms
(with H. Müller), Journal of Financial Economics, 2004, 72(2),
319-356
“Bilateral bargaining between VCs and entrepreneurs over
financial contracts is studied in a search-market environment. This
allows to derive predictions on how market characteristics affect
contracts as well as the flow and nature of funded projects.”
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Internal
vs. External Financing: An Optimal Contracting Approach
(with H. Müller), Journal of Finance, 2003, 58(3), 1033-1062
”In a model where a borrower has only imperfect commitment to
repay a loan out of future cash flows, we study the benefits and
costs of integrating previously stand-alone business units. This is done
under the respective optimal financial contracts.”
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Book Chapters
& Other Journals
Public Policy,
Early-Stage Financing, and Firm Growth in New Industries,
Book chapter,
"Challenges to the Financial System", Stiftung Geld und
Währung, 2009
Law and Finance as a District Field of
Research
(Editorial)
European
Business Organization Law Review, 2009, 10, 323-329
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