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This chapter presents evidence of persistence in pricing new corporate bond issues. Both transition matrix and regression analyses show that cross-sectional differences in the yields of initial public bond offerings across issuers persist over time, and the persistence effect is stronger for firms with no rating changes, less frequent bond issuance, and higher information asymmetry. Our findings support the hypothesis of the “ride on past” behavior and confirm the value of information production accumulated from the past bond issuances for the pricing of newly issued bonds.

This chapter investigates the cost of public debt for firms using a comprehensive sample consisting of 17,368 industrial bond issues from 1970 to 2011. The empirical evidence shows that yield spreads for seasoned bond issues are significantly lower than those for initial bond issues. This seasoning effect is robust across different sample periods, subsamples, and model specifications. On average, the yield spreads for seasoned bond issues are around 50 bps lower than those for initial bond issues. This difference cannot be explained by other bond and firm characteristics. The seasoning effect is more pronounced for firms with higher levels of uncertainty, lower information disclosure quality, and longer time intervals between the first and subsequent issues. Our empirical findings provide supportive evidence for the extant theories that aim to rationalize the information role in determining the cost of capital.

Policymakers worldwide have proposed a new contract – the ‘social impact bond’ (SIB) – which they claim can allay the underperformance afflicting not-for-profits, by tying the private returns of (social) investors to the success of social programs. We investigate experimentally how SIBs perform in a first-best world, where investors are rational and able to obtain hard information on not-for-profits’ performance. Using a principal-agent multitasking framework, we compare SIBs to inputs-based contracts (IBs) and performance-based contracts (PBs). IBs are based on a piece-rate mechanism, PBs on a non-binding bonus mechanism, and SIBs on a mechanism that, due to the presence of an investor, offers full enforceability. Although SIBs can perfectly enforce good behaviour, they also require the principal (i.e., government) to relinquish control over the agent’s (i.e., not-for-profit’s) payoff to a self-regarding investor, which prevents the principal and agent from being reciprocal. In spite of these drawbacks, in our experiment SIBs outperformed IBs and PBs. We therefore conclude that, at least in our laboratory test-bed, SIBs can allay the underperformance of not-for-profits.

This chapter investigates whether shareholders of firms that enter bond markets for the first time benefit from a reduction in free cash flows or suffer from controlling owners keeping a lock on control. We analyze an international sample of 225 bond initial public offerings (IPOs) from 37 countries. We find that announcement returns are higher for firms with higher free cash flows and lower for firms with controlling owners that have majority control. These effects depend on the level of legal shareholder protection. We find that the disciplinary power of public debt is more important in countries with strong shareholder protection. In countries with weak shareholder protection, the negative lock on control effect dominates.

In 1958 the Daily Express began publication of a comic strip adaptation of Casino Royale authorised by Ian Fleming, predating the original film version by four years. For the next 10 years adaptations of the novels and short stories appeared in the newspaper with Bond’s appearance fashioned firstly by John McLusky and then Yaroslav Horak. When the supply of Fleming’s stories was exhausted, new adventures were penned by Jim Lawrence with artwork by Horak, McLusky or Harry North. From 1977 publication switched to the Sunday Express and then the Daily Star. Eventually, the strips were reprinted for a whole new audience by Titan Books.

Subsequently, Bond appeared in a number of other comic book adaptations and reworkings, including key adaptations by the independent publishers Dark Horse and Dynamite, offering contemporary re-imaginings of this iconic, but always controversial, male icon. Taken together they provide a run of Bond adventures over more than 50 years. As such, they contain an alternative Bond universe, where his embodiment of male heroism mimics and varies Fleming’s original and the images constructed in the film franchise. This chapter will consider these mirror images and their responses to changing societal pressures as Bond adapts to new definitions of what constitutes the male hero.

One of the most important, least-known documents of the American Revolution was a 25-page pamphlet published in Amsterdam early in 1787: An Explanatory Message Concerning the Funds by Pieter Stadnitski. ¹ Within a year of its publication Peter Stadnitski's Message quite literally revolutionized American sovereign finance. My paper will summarize in detail the report's content and analyze its arguments in light of Dutch archival materials including deeds, newspaper reports, and letters, as well as congressional records from American sources. It will describe what Dutch investors knew (and did not know) of the state of American public finance and American political landscape, and the Dutch financial community's view of the American future. Its essential argument is that thanks initially to Stadnitski's persuasive case and ultimately to the success of the trusts he pioneered, Dutch investment specialists came to see the American republic as a safe haven at a time that Dutch Republic's own future seemed increasingly perilous. If their dream of achieving a new Golden Age through trade and investment with the new nation ultimately proved illusory, the effects of Dutch capital in creating financial stability for the United States government and igniting the first peacetime economic expansion in American history were revolutionary indeed.