Research objectives and content
Efficient financial decisions and product-market decisions both are of vital importance for companies. Considerable progress has been made in understanding optimal financial and product market decisions as separate entities. However, interactions between financial constraints, financial contracts and real activity are still badly understood - despite its importance for policy, regulation and business strategy. Financial constraints are crucial in determining entry, firm survival and exit patterns. Similarly, market structure and business prospects have an important impact on a firm's financial structure.
During my stay at ULB and ECARE in Brussels, and building on my recent work at Universitat Autonoma de Barcelona, I want to analyse these interactions and derive implications for regulatory policy and business strategy. Specifically, I want to analyse the following issues, explained in detail in the research proposal:
- optimal financial contracts, market behaviour and structure under asset specificities;
- the impact of financial intermediaries on real activities and market structure, and implications for the regulation of bank activities; - the optimal regulation of financially constrained firms;
- optimal financial structures of regulated firms.
Training content (objective, benefit and expected impact)
Through my research stay at ULB and ECARE under the supervision of Mathias Dewatripont, I hope to be able to contribute to a deeper understanding of the issues outlined above and explained in detail in the research proposal. ULB and ECARE have one of the strongest European research groups in financial economics and industrial organization, which made important contributions to both fields. The stay at ULB and ECARE is therefore very important for the progress of my PhD thesis.