Lack of transparency in securitization transactions significantly contributed to thesevere financial crisis of 2007–2009. To increase transparency we—based on arecent idea by Markowitz (2009)—propose an incentive compatible mechanismfor future securitization transactions: financial claims...

The hedge fund industry represents a significant and viable alternative for mainstream investment business clientèle, as well as a growing number of sophisticated high net worth individuals. The hedge fund raison d'être has been relative independence of other (more traditional) asset classes...

In this study, we examine whether sell-side security analysts gain access to value relevant information through political connections. We measure analysts' political connections based on political contributions at the brokerage house level. We argue that if brokerages are able to obtain private...

We discuss the literature on the shift from stakeholder to shareholder finance behind the Great Financial Crisis (GFC). Traditional banks generally maximized stakeholder value (STV). But before the GFC also many of them started maximizing shareholder value (SHV). Moving from STV to SHV often...

This paper uses new data on the timing of sovereign defaults during 1869-1914 to quantify an informational channel of contagion via shared financial intermediaries. Concerns over reputation incentivized Britain's merchant banks to monitor, advise, and occasionally bail out sovereigns. Default...

This paper examines the impact of analyst corporate site visits on stock price crash risk using a unique data set of Chinese A-share stocks listed on the Shenzhen stock exchange (SZSE) over the 2012–2019 period. We find that the frequency of analyst corporate site visits is positively...

In this paper we explore how the 2008 financial crisis impacted sell-side analysts' research as well as the market reactions to the publication of such research. Based on over 350,000 analyst reports from 2005 to 2010, we find that during the crisis analysts only disproportionately adapted their...

Many people are unable or unwilling to spend the resources necessary to look beyond the short-term and integrate the local with the global. As illustrated by the global financial crisis, the costs of myopia for individual and collective welfare can be far-reaching. In the context of the global...

This paper examines the contagion effects of the U.S. subprime crisis on international stock markets using a DCC-GARCH model on 38 country data. We find evidence of financial contagion not only in emerging markets but also in developed markets during the U.S. subprime crisis. We also find...

Many observers have argued that credit default swaps contributed significantly to the credit crisis. Of particular concern to these observers are that credit default swaps trade in the largely unregulated over-the-counter market as bilateral contracts involving counter-party risk and that they...