While industrial pollution is widespread in the modern world and affects everyone’s life, whether it influences the returns on stock investors is an important yet underexplored issue. In our recent paper, we attempt to examine why and how industrial pollution affects expected stock returns using both modeling and empirical approaches. Polluting firms may save costs… Read More »
There is a heated academic debate about the degree to which market prices of financial assets reflect underlying fundamental values, well summarized by this paper. There are two main schools of thought on the topic: behavioural finance and efficient-market theory. According to the first school of thought, market prices are the result of the interactions… Read More »
“Lessons from COVID-19: Liquidity Risk Management is Central to Open-Ended Funds.” —BlackRock (2020) “Liquidity risk management programs (LRMPs) will be a focus area for the Division.” —SEC (2021) Mutual fund liquidity management has become increasingly important since the financial crisis of 2007–2009, during which regulators and practitioners raised concerns about whether mutual fund portfolios had… Read More »
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