This paper studies the effect of new fund flows on investment behavior and the resulting equilibrium price of risk. The … equilibrium. New flow of funds to the asset management industry lead to inefficient investment decisions, mispricing of risk, and … Small Fund Industry model shows equilibria with overinvestment in unprofitable and underinvestment in profitable investment …

This paper defines risk-on risk-off (RORO), an elusive terminology in pervasive use, as the variation in global … investor risk aversion. Our high-frequency RORO index captures time-varying investor risk appetite across multiple dimensions …: advanced economy credit risk, equity market volatility, funding conditions, and currency dynamics. The index exhibits risk …

asset portfolio considerations. Based on the modified exchange market pressure index, the paper also proposes a global risk … response index, which reflects the country-specific sensitivity of capital flow pressures to measures of global risk aversion …. For a large sample of countries over time, we demonstrate time variation in the effects of global risk on exchange market …

proprietary individual-level trading data around a natural experiment – the release of a popular mobile trading application (“app …”) by a leading investment adviser in China. “Going mobile” raises investor attention and trading volume through aggravating …

foreign and domestic investors or institutional risk, cannot explain bilateral data well. On the other hand, our results show … that global crises have an asymmetric impact on the risk attitudes of banking institutions towards country …-specific uncertainty: global crises make investors more risk-averse towards foreign uncertainty, but have no effect on the responsiveness …

even in markets with largely risk-seeking participants. The evidence indicates that capital allocation decisions are partly … facilitate gambling behavior, a result with implications for the many settings in which decision-makers are not globally risk … averse but rather exhibit local risk-seeking behavior. Our findings also inform policy debate on whether and how to use …

' perceived ambiguity have the opposite effect, and lead to less risk-sharing. Entrepreneurs from capital-scarce countries finance … ambiguity, that is, when investors only perceive risk. New facts uncovered from cross-country firm-level data are consistent …

Portfolio Investment Survey” (CPIS). For years, the scope of the related empirical literature had been bounded with limited data … availability since the estimation of cross-border investment positions using flows data would be misleading (see Warnock F., 2002 …, since the mid-1980s, the investment environment in Turkey had been gradually liberalized. Given this facilitated access to …