Category Archives: Finance

Coronavirus and Climate Change: Tragedies of the Horizon

By | March 18, 2020

Courtesy of Joseph Smith Can the current health crisis teach us about the looming environmental one?  I think so, particularly as a study of horizons in both time and space. While there is consensus among experts that climate change is real and its potential impact catastrophic or worse, there is also consensus that the worst-case… Read More »

Reversing the Fortunes of Active Funds

By | January 27, 2020

Courtesy of Adi Libson and Gideon Parchomovsky Recent years have witnessed a considerable growth of passive funds at the expense of active funds. This trend picked up in 2019, a year that saw passive funds surpass active funds in terms of total assets under management. The continuous decline of active funds is a cause for… Read More »

Summarization in Financial Disclosures: Determinants and Effects of Prospectus Summaries

By | January 14, 2020

Courtesy of Daniel Blaseg and Christina Bannier Issuers of financial securities must disclose vast amounts of information to capital markets. The increasing length and complexity of security prospectuses is an unambiguous sign of this development. To raise the comprehensibility of these documents, financial regulators around the world have started to require that issuers release an… Read More »

Career Experience and Executive Performance: Evidence from Former Equity Research Analysts

By | July 18, 2019

Courtesy of Shawn Huang Organizational outcomes have long been known to be, at least in part, determined by executives’ idiosyncratic characteristics. Prior research shows that Chief Executive Officers (CEOs) and Chief Financial Officers (CFOs) uniquely impact corporate practices and operations. Peering into these effects, recent studies examine executive heterogeneity with respect to aspects such as… Read More »

How are Bond Yields Affected by a Firm’s Ties to the Federal Government?

By | February 13, 2018

Courtesy of Reza Houston Do bondholders benefit from connections with the federal government?  We know that in the United States, there is ample evidence political connections confer benefits on firms.  Firms which make PAC contributions, hire lobbyists, or employ former politicians are more likely to be bailed out[1], avoid enforcement[2], and receive lucrative government contracts[3]. … Read More »