Drawing on recently disclosed information on the Pillar 2 capital requirements of banks directly supervised by the ECB, we find that bank-specific capital requirements are mostly driven by business model and profitability, credit risk, and internal governance and risk management issues....

Stakeholder theory implies that firms' economic and social purpose is to create value for all their stakeholders, without favoring any group. However, the distribution of the value created is a matter of choice for each firm. Thus, it may reflect the top managers' characteristics. Accordingly,...

In recent years, many have argued for a greater orientation of companies toward defending the interests of their various stakeholders, and many firms have proclaimed their adherence to stakeholder capitalism. However, there is not a single measure that can objectively quantify the orientation of...

Purpose – Investor relations literature reports that after an era that “the higher the stock price, the better”, currently investor relations entered into a new era where “overvaluation is perhaps as bad as undervaluation” (Laskin, 2018a, p. 19). This paper searches for evidence on...

An exchange-traded fund (ETF) is a marketable security that tracks a stock index, a commodity, bonds, or a basket of assets. Therefore, returns of ETFs that track a benchmark index portfolio should mimic the returns of their benchmark indexes. If a benchmark index’s performance exhibits a...

We measure the impact of the August 2011 bans on covered short-selling adopted by several European countries. Our results provide evidence that the impact on prices was shortlived: the positive price impact disappears after ten days. The short-selling restrictions did not contribute to reduce...

The literature provides broad evidence for the seasonality of stock market returns, but is very scarce regarding the potential seasonality of investment funds performance. Using a sample of 5349 Equity Europe or Equity Eurozone investment funds, this article contributes to fill this gap by...

Traditionally, the Latin model of corporate governance had been a predominant model in some countries; however, this model is increasingly becoming out of fashion. Using a database of Portuguese and Brazilian firms, we investigated whether the Latin model performs worse than other models (i.e....

In this paper, using a unique database, we compare the performance of a set of equity mutual funds to a set of equity savings funds, which are similar to equity mutual funds in all but one characteristic: the tax regime that strongly penalizes withdrawals from equity savings funds. We found...

Purpose – We develop a theoretical model to analyze the role that financial conglomerates may play in reducing agency costs in target firms.Methodology/Approach – We develop a model to analyze the activism of a financial conglomerate (that includes investment banking besides mutual fund...