This paper examines the underlying dynamics of selected euro-area sovereign bonds by employing a factor-augmenting vector autoregressive (FAVAR) model for the first time in the literature. This methodology allows for identifying the underlying transmission mechanisms of several factors; in...

This paper examines the effect of host economy creditor rights and information sharing on the profit performance of foreign banks vis-à-vis domestic banks for a global sample of commercial banks over the 2005-2009 period. To this end, we employ the recent foreign bank ownership dataset of...

We examine the effect of economic policy uncertainty (EPU) on the financial reporting quality of US firms over 1999-2015. Using accruals-based earnings management as a proxy for financial reporting quality and the index of Baker et al. (2016) as an EPU measure we show that they exhibit a...

We show that tax enforcement benefits US firms that borrow from banks. Using data on syndicated loans over the 1993-2017 period, we find that higher IRS audit probabilities exert a negative and significant effect on the cost of loans. The baseline estimates show that a one standard deviation...