This study explores whether different types of sanctions, such as arms, military, trade, finance, and travel sanctions, affect bilateral tourist flows from the sender to the sanctioned country. It also investigates the moderating roles of religious and geographical proximity on the underlying...

An increasing body of literature discusses how and to which extent the financial crisis of 2007-2009 transmits to the real economy. This paper investigates the impact of the financial crisis of 2007-2009 on corporate investment, in particular research and development (R&D) expenditures. We...

This paper develops an hourly forward curve for power markets where the intra-day and intra-week shapes (profiles) depend on the level of the hydrological balance. The shaping model is based on a feed-forward Artificial Neural Network (ANN), which is trained on a historical data set of hourly...

I measure the value of political connections through their liquidity effect on privately controlled firms and state-owned enterprises (SOEs) in China’s stock market over the period of 2003 to 2012. State participation among the top ten shareholders is used as a criterion for classifying a firm...

Equity market liberalizations allow foreign investors to acquire ownership stakes in domestic firms. Previous research on the real impact of these events has therefore emphasized the interactions between firms and investors. This paper shows that cross-border equity flows also improve...

This paper applies the GARCH-MIDAS (Mixed Data Sampling) model to examine whether information contained in macroeconomic variables can help to predict short-term and long-term components of the return variance. A principal component analysis is used to incorporate the information contained in...

We analyze how firms hedge in the oil and gas industry. Our main finding is that CEO age determines hedging behavior. The probability of being a hedger as well as the use of linear hedging strategies decreases with CEO age. These results are consistent with an argument that financial distress,...

We show that exported products exit the US market sooner if they violate the Heckscher-Ohlin notion of comparative advantage. Crucially, this pattern is stronger when exporting country has a well-developed banking system, measured by a high ratio of bank credit over the GDP. Banks thus push...

Size and book-to-market equity (BM) strongly explain stock returns’ cross section; the risk they capture is the relative distress of small and value stocks. This study examines the default risk’s pricing power, measured by U.S. firms’ market-revealed credit-default-swap premiums...

We document that ethnicity is a major determinant of how founders of U.S. startup companies match with partners of U.S. VC firms. A shared ethnicity increases the likelihood that a VC firm invests in a startup, strengthens the degree of the VC firm’s involvement, increases the size and scope...