On September 3-4, 2009 SUERF and Utrecht University School of Economicsorganized the Colloquium "The Quest for Stability" in Utrecht, the Netherlands. The papers included in this SUERF Study are based on contributions to the Colloquium.

We analyze the history of the equity risk premium from surveys of U.S. Chief Financial Officers (CFOs) conducted every quarter from June 2000 to March 2009. The risk premium is the expected 10-year S&P 500 return relative to a 10-year U.S. Treasury bond yield. The last two surveys were conducted...

There is tension underlying whether asset redeployability, which refers to the salability of corporate capital assets, shapes crash risk. On one hand, asset redeployability enables managers to opportunistically exploit asset sales to manage earnings upwards to hoard bad news, which, in turn,...

Minsky proposed classifying firms in three categories: 1) hedge finance units which borrow no more than they are able to service in interest and principal out of operating cash flows, 2) speculative finance units which are over-leveraged to the point where they can service interest on their debt...

On September 3-4, 2009, SUERF and Utrecht University School of Economics jointly organized the 28th SUERF Colloquium on "The Quest for Stability" in Utrecht, the Netherlands. The papers contained in this SUERF Study jointly published with DNB and Rabobank are based on contributions to this...

The authors, on the basis of Kuhn's theory of science development, discuss whether the paradigm of economic value estimated by discounted cash flow method is still valid and can explain the current changes of radical overestimation of values. The authors ask the question whether the current...

This paper examines the effect of accounting conservatism on firm-level investment during the 2007-2008 global financial crisis. Using a differences-in-differences design, we find that firms with less conservative financial reporting experienced a sharper decline in investment activity following...

This chapter revisits the relationship between the connection CEOs develop with other top executives through appointment decisions and firm performance where the 2008-2009 financial crisis acts as a negative exogenous shock to internal trust. Contrary to the conventional wisdom that less...

This paper examines the effect of accounting conservatism on firm-level investment during the 2007-2008 global financial crisis. Using a differences-in-differences design, we find that firms with less conservative financial reporting experienced a sharper decline in investment activity following...

Using a novel approach based on hurricanes, this paper contributes to the recent debate on whether nonfundamental price variations affect real economic activities. Hurricanes create liquidity demand from investors living in disaster zones. This translates into additional outflows for mutual...