The fifth European Summer Symposium in Financial Markets took place at Gerzensee on 11/22 July 1994. CEPR thanks the Studienzentrum Gerzensee for its generous hospitality for the meeting, which was organized by Jean-Charles Rochet, Professor of Economics at the Université des Sciences Sociales, Toulouse, and Research Fellow in CEPR's Financial Economics and Industrial Organization programmes, Colin Mayer, Assistant Director of the School of Management Studies, University of Oxford, and Co-Director of CEPR's Financial Economics programme, and Rafael Repullo, Director of the Centro de Estudios Monetarios y Financieros, Madrid, and Co-Director of CEPR's Industrial Organization programme. A full report will appear in issue no. 11 of the Newsletter of the ESF Network in Financial Markets, October 1994. The following papers were presented:

`The Volume of Trade in Auction and Dealership Markets with Differential Information', Hyun Song Shin (University College, Oxford)

`Competing Exchanges', Thomas Gehrig (Universität Basel and CEPR), Konrad Stahl (Universität Mannheim and Zentrum für Europäische Wirtschaftsforschung, Mannheim) and Xavier Vives (Institut d'Anàlisi Econòmica (CSIC), Barcelona, and CEPR)

`Noise Trading, Professional Portfolio Management, and Economic Welfare', James Dow (London Business School and CEPR) and Gary Gorton (Wharton School, University of Pennsylvania)

`A Theory of Analyst Forecast Bias', Murugappa Krishnan (Purdue University) and K Sivaramakrishnan (Carnegie Mellon University)*** NB This is title cited on the programme and on the paper distributed in advance, of which we received a copy after the conference; but the rapporteur refers to a completely different paper by Krishnan, 'How Noisy are Noisy Rational Expectations? Evidence from Three Currency Futures Markets', written with Jin-Wan Cho. What happened?

`Incentive Constraints, Capital Accumulation, and Intergenerational Risk Sharing', Gabrielle Demange (Département et Laboratoire d'Economie Théorique et Appliquée, Paris) and Guy Laroque (Institut Nationale de la Statistique et des Etudes Economiques, Paris)

`The Governance of Exchanges: Members' Cooperatives versus Outside Ownership', John Hardman-Moore (LSE and CEPR) and Oliver Hart (Harvard University)

Focus Session on Banking Regulation:

`The Economics of Banking Regulation', Sudipto Bhattacharya (Université Catholique de Louvain) *** BUT `Contemporary Banking Theory' (with Anjan V Thakor) was the paper circulated.

`Optimal Liquidity Provision and Dynamic Incentive Compatibility', Ernst-Ludwig von Thadden (Universität Basel and CEPR)

`Bank Lending, Capitalization and Cross-Border Expansion', Arnoud Boot (Universiteit van Amsterdam and CEPR) and Liang Zou (Universiteit van Amsterdam)

`Closure Rules, Market Power and Risk-Taking in a Dynamic Model of Bank Behavior', Javier Suarez (Universidad Carlos III, Madrid)

`Who Should Decide on Bank Closures? An Incomplete Contracts Model', Rafael Repullo (Centro de Estudios Monetarios y Financieros, Madrid, and CEPR)

`Discriminatory versus Uniform Price Auctions: Evidence from When -Issued Transactions', Kjell Nyborg (London Business School) and Suresh Sundaresan (Columbia University)

`The Valuation of Non-Systematic Risks and the Pricing of Swedish Lottery Bonds', Richard C Green (Carnegie Mellon University) and Kristian Rydqvist (Carnegie Mellon University and Stockholm School of Economics)

`Underpricing, Ownership and Control in Initial Public Offerings of Equity Securities in the UK', Michael J Brennan (University of California, Los Angeles, and London Business School) and Julian Franks (London Business School)

`Auctions of Shares with a Secondary Market and Tender Offers', António Mello (Universidade Católica Portuguesa, Banco de Portugal and CEPR) and John E Parsons (Columbia University

`Large Shareholders, Monitoring and Fiduciary Duty', Mike Burkart and Denis Gromb (LSE) and Fausto Panunzi (MIT)

`Talking About Growth: The Evolution of Contractual Language', Oren Sussman (Hebrew University of Jerusalem)

Focus Session on International Finance:

`Current Research in International Finance', Bernard Dumas (Hautes Etudes Commerciales, Jouy-en-Josas, and CEPR)

`Research in the Theory of the Multinational Firm', Wilfred Ethier (University of Pennsylvania)*** This appears on rapporteur's draft and on the programme, but a different paper, `Multinational Firms, Technology Diffusion and Trade (NBER Working Paper No. 3825, joint with James R Markusen) appears to have been circulated.

`Research on Cross Border Acquisitions'***, Robert Harris (University of Virginia) *** (I assume this was a synthesis of the three papers circulated.)

`Net Capital Flows under Exchange Rate and Price Volatility', Philippe Bacchetta (Studienzentrum Gerzensee) and Eric van Wincoop (Boston University) [Not on programme, and we don't have the paper, but presumably this was not pure invention by your rapporteur!]

`An Analytic Solution for Interest Rate Swap Spreads', Mark Grinblatt (University of California, Los Angeles)

`Multiperiod Equilibrium with Endogenous Price Uncertainty', Philippe Henrotte (Hautes Etudes Commerciales, Jouy-en-Josas)