AbstractWe study the role of social networks in hedge fund activism. Actively managed funds whose managers are socially connected to activists are more likely than unconnected
managers to invest in target stocks; their investment decisions are profitable. Importantly, such effects are greater for funds facing more severe information asymmetry. [...]
AbstractActive mutual funds supply liquidity when demanding it becomes uneconomical. They tilt toward cheaper buy trades after inflows deplete their trading ideas, when trading
ideas in general run low, and when they have more stocks to supply liquidity to, and their cheaper trades perform worse. [...]
AbstractThis paper studies how anticipated disagreement between a financier and an entrepreneur affects optimal contracting and asset prices. The value of debt is uniquely
immune to anticipated disagreement, and when the set of anticipated disagreements is sufficiently rich, this immunity causes the optimal contract to give the financier [...]
AbstractAs with the global financial crisis, there are once again demands on central banks and financial regulators to take on new responsibilities, this time for supporting
the transition to a low-carbon economy. Regulators can indeed facilitate the reorientation of financial flows necessary for the transition. [...]
AbstractDeparting from the principle of absolute priority, contingent convertible (CoCo) bonds are particularly exposed to bank losses despite not having ownership rights.
In this article we show the link between adverse CoCo bond design and their yields, confirming the existence of market discipline in designated bail-in debt. [...]
ABSTRACTThis article introduces a revised and updated version of the Financial Reform Database, which is widely used by economists and political economists. In this revision,
country coverage is extended from 91 to 100 economies. Also, the time period covered is extended from 1973–2005 to 1973–2013. [...]
AbstractThe crisis management and deposit insurance (CMDI) framework in the euro area requires a reset. This article explains why and proposes a new framework. This could start
as early as 1 January 2024 when significant institutions in the euro area will have met requirements to have enough subordinated obligations outstanding to recapitalize [...]
AbstractCyber risk is one of the greatest threats facing any modern financial system; a result of increasing dependence on technology and the appeal of troves of personal data
to well-equipped hackers. This article examines the governance of cyber risk in the Canadian banking system in the context of the Covid-19 crisis, which has led to [...]
