Using a unique dataset of detailed portfolio holdings of US money market funds, we study the funds' behavior in the context of the European sovereign debt crisis. These important players in the shadow banking sector were particularly vulnerable to liquidity shocks before the introduction of...

We represent the market for syndicated loans as a dynamic financial network and find that financial institutions have developed strong cross-border linkages over the 2000–2019 period. The most-connected financial institutions hold large shares of leveraged and covenant-lite loans. Our analysis...

We investigate the impact of deregulation-induced banking competition on corporate credit risk. Although banking competition does not, on average, affect corporate bankruptcy rates, we find that it causes corporate bankruptcies to increase significantly for high-leverage firms. This effect lasts...

We represent the market for syndicated loans as a dynamic financial network and find that financial institutions have developed strong cross-border linkages over the 2000–2019 period. The most-connected financial institutions hold large shares of leveraged and covenant-lite loans. Our analysis...

In the Subprime Crisis of 2008/9, European firms with high Corporate Social Responsibility (CSR) scores had stock returns 1.8 to 2.6 percentage points higher than those with lower scores. This is believed to be the effect of social capital – an asset which becomes incrementally valuable during...

We investigate the impact of escalating temperature and heavy rainfall on the default probability of small and micro firms (SMiEs) in six European countries from 2005 to 2014. Our findings reveal that a one standard deviation increase (2.56°C) in the yearly mean temperature amplifies a firm’s...

We study how investors price voluntary climate adaptation disclosure by using natural disasters as exogenous shocks to information uncertainty about firms’ fundamentals. We show that affected firms that mention adapting to climate risks suffer a 2.2% decrease in market-adjusted returns, akin...

With comprehensive financial data from Bureau van Dijk and gridded weather data from E-OBS, we estimate the impact of temperature shocks on small and micro firm performance across Europe. Our study contributes to the limited economic climate literature outside the US market and is the first...

We study the impact that lower complexity in bank securitisations has on mortgage quality before and during the COVID-19 pandemic. We find that mortgages issued after the introduction of the new European regulation in 2018 that aims to reduce deal complexity are characterised by up to 0.10%...