How do country-level societal norms affect financial investments? We provide evidence that mutual funds managed in high social capital countries are inclined to consider environmental, social, and governance filters in their portfolios, especially when acquiring new stocks and investing abroad....

In an era when the boundaries between local risks and global risks are not clear, the occurrence of major public emergencies tends to lead to increased tension and risks of all types. Negative public opinions caused by rumors, fear and hostility during public emergencies can often exacerbate...

We examine whether and how the social capital surrounding firms’ headquarters affects firm decision-making regarding mergers and acquisitions (M&As). We document that M&A deals made by firms located in counties with higher levels of social capital are associated with superior acquirer...

Purpose – The aim of the paper is to study the long‐run under‐performance of UK initial public offerings (IPOs) by relating it to the pre‐IPO financial performance of the firm as well as the managerial decisions taken before the IPO. Design/methodology/approach – The three‐year share...

IPOs on the EuroNMs have shown very high underpricing.The majority of these IPOs possess specific characteristics such as lock-up agreements, venture-capital financing, ownership by the underwriter and over-allotment options.We study how these characteristics influence the underpricing of firms...