We document equity market reactions to an exogenous increase in expected balance sheet volatility – the time-series variation in equity book values. Our study is motivated by recent trends in accounting standard setting towards a ‘balance sheet approach’, which increases balance sheet...

We use wavelet analysis to examine the impact of macro-news announcements on the stock-bond correlation. Significant announcement effects appear after controlling for the recent financial crisis, with a link between the speed of reaction and the timing of announcements, with early released news...