G24 - Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies

• Broker Routing Decisions in Limit Order Markets

  Staff Working Paper 2016-50 David A. Cimon

  The primary focus of this paper is to study conflict of interest in the brokerage market. Brokers face a conflict of interest when the commissions they receive from investors differ from the costs imposed by different trading venues.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial markets, Market structure and pricing JEL Code(s): G, G2, G24, G28

• Capital Structure, Pay Structure and Job Termination

  Staff Working Paper 2016-12 Jason Allen, James R. Thompson

  We develop a model to analyze the link between financial leverage, worker pay structure and the risk of job termination. Contrary to the conventional view, we show that even in the absence of any agency problem among workers, variable pay can be optimal despite workers being risk averse and firms risk neutral.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial Institutions, Labour markets JEL Code(s): G, G2, G24, J, J3, J33

• On the Existence and Fragility of Repo Markets

  Staff Working Paper 2012-17 Hajime Tomura

  This paper presents a model of an over-the-counter bond market in which bond dealers and cash investors arrange repurchase agreements (repos) endogenously.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial markets, Financial stability, Payment clearing and settlement systems JEL Code(s): G, G2, G24

• A Note on Central Counterparties in Repo Markets

  Staff Discussion Paper 2012-4 Hajime Tomura

  The author introduces a central counterparty (CCP) into a model of a repo market. Without the CCP, there exist multiple equilibria in the model. In one of the equilibria, a repo market emerges as bond dealers and cash investors choose to arrange repos in an over-the-counter bond market.

  Content Type(s): Staff Research, Staff Discussion Papers Topic(s): Financial markets, Financial stability, Payment clearing and settlement systems JEL Code(s): G, G2, G24

• The Private Equity Premium Puzzle Revisited

  Staff Working Paper 2011-6 Katya Kartashova

  In this paper, I extend the results of Moskowitz and Vissing-Jørgensen (2002) on the returns to entrepreneurial investments in the United States. First, following the authors’ methodology I replicate the original findings from the Survey of Consumer Finances (SCF) for the period 1989–1998 and show that the returns to private and public equity are similar.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial markets, Interest rates, Recent economic and financial developments JEL Code(s): G, G1, G11, G12, G2, G24, G3, G31, G32

• Estimation of the Default Risk of Publicly Traded Canadian Companies

  Staff Working Paper 2006-28 Georges Dionne, Sadok Laajimi, Sofiane Mejri, Madalina Petrescu

  Two models of default risk are prominent in the financial literature: Merton's structural model and Altman's non-structural model.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Credit and credit aggregates, Debt Management, Econometric and statistical methods, Financial markets, Recent economic and financial developments JEL Code(s): G, G2, G21, G24, G28, G3, G33

• A Search Model of Venture Capital, Entrepreneurship, and Unemployment

  Staff Working Paper 2005-24 Robin Boadway, Oana Secrieru, Marianne Vigneault

  The authors develop a search model of venture capital in which the number of successful matches of entrepreneurs and venture capitalists (VCs) at any moment in time is a function of the number of entrepreneurs searching for funds, the number of VCs searching for entrepreneurs, and the number of vacancies posted by each VC.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial markets, Fiscal Policy, Labour markets JEL Code(s): D, D8, D82, G, G1, G18, G2, G24, H, H2, H21, J, J6, J64

• Public Venture Capital and Entrepreneurship

  Staff Working Paper 2004-10 Oana Secrieru, Marianne Vigneault

  Entrepreneurship is a key factor in promoting growth in output and employment. Consequently, to encourage new start-ups, most governments in developed countries have public venture capital programs.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial markets, Fiscal Policy, Labour markets JEL Code(s): D, D2, G, G2, G24, G28, J, J2, J24, M, M1, M13