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Mutual funds have traditionally attracted retail investors seeking diversified market exposure. While the focus has historically been on asset liquidity and quality, recent attention has turned to assessing fund liquidity and the risks of asset fire sales. Our study analyzes Israeli mutual...
Persistent link: https://www.econbiz.de/10014350019
The annual percentage rate of charge (APRC) designed to reflect all costs of borrowing is a widely used measure to compare different credit products. It disregards completely, however, risks of possible future changes in interest and exchange rates. As an unintended consequence of the general...
Persistent link: https://www.econbiz.de/10012023954
Despite a heated debate on the perceived increasing complexity of financial regulation, there is no available measure … measures from the computer science literature by treating regulation like an algorithm - a fixed set of rules that determine … regulation of a bank in a theoretical model, to an algorithm computing capital requirements based on Basel I, and to actual …
Persistent link: https://www.econbiz.de/10012291737
Regulations introduce significant fixed costs and add to operating leverage. Fixed regulatory costs that contribute to operating leverage should generate a risk premium. To explore whether such a premium exists, we introduce a measure of "regulatory operating leverage" that reflects the...
Persistent link: https://www.econbiz.de/10012827897
offering ; regulation …
Persistent link: https://www.econbiz.de/10009673044
This paper provides causal evidence for the impact of changes in regulation on shareholder value. Using the 2016 US … economic mechanisms through which investors expected firms to benefit from de-regulation, I find that the positive effect on … shareholders' wealth is primarily driven by ex-ante high growth firms. Furthermore, in line with the public choice theory of …
Persistent link: https://www.econbiz.de/10012852655
positively correlated. It is observed that the implementation of the regulation change decreased intraday volatility and … indicator of informed trading, and regulatory authorities can use volume to oversight volatility. This very rare regulation …
Persistent link: https://www.econbiz.de/10013307168
We consider an exchange who wishes to set suitable make-take fees to attract liquidity on its platform. Using a principal-agent approach, we are able to describe in quasi-explicit form the optimal contract to propose to a market maker. This contract depends essentially on the market maker...
Persistent link: https://www.econbiz.de/10012899366
Some people are concerned that existing market structure regulation and liquidity incentives have skewed financial … sudden market downturn driven by computer-automated trading.According to these critics, additional regulation should be … market integrity and avoid flash crashes. Yet, further regulation may be counterproductive, since it risks creating an …
Persistent link: https://www.econbiz.de/10013012226
argued that these practices create risk and require aggressive regulation. Purported risks to the stability and integrity of … those calling for increased regulation predate the emergence of HFT, and thus those concerns are not particular to HFT …
Persistent link: https://www.econbiz.de/10013078488