Insurers act as institutional investors and underwriters of risk, therefore improving their own environmental, social, and governance (ESG) performance is important for the transmission of ESG values to all other economic sectors. We analyze ESG scores of worldwide Property and Casualty (P&C)...

This paper shows that corporate risk-taking is a response to peer influence. Firms take more risks if they encounter greater peer firms’ risk-taking. We further identify four plausible channels through which peer influence on corporate risk-taking operates. First, we find that firms with...

This study presents compelling experimental evidence indicating that the core intertemporal choice anomalies, encompassing extreme short-run impatience, present bias, hyperbolicity, and transitivity violations, are primarily attributable to complexity rather than time or risk preferences....

We analyze the effects of (not) bailing out uninsured deposits in a quantitative, general equilibrium model in which firms’ deposits are valued for their safety and uninsured deposits might be bailed out by the government. Although an important fraction of households’ deposits are uninsured,...

This paper exploits the recent rise in corporate venture capitalists (CVC) to examine the effect of shareholders’ strategic incentives on firms’ IPO disclosure. CVCs’ investments are often driven by both financial and strategic incentives. I argue that, due to their strategic incentives,...

In the liquidity crises since 2008, central banks have extended the ability of banks to take recourse to central bank credit operations through changes of the collateral framework. Remarkably, in March 2020, the ECB even lowered haircuts across a broad range of assets and the Fed in March 2023...

This study investigates the impact of caps and floors on investment timing, leverage decisions, firm value, and credit spreads. It finds that a floor below a critical threshold has a moderate impact on leverage. However, surpassing this threshold allows firms to issue reduced-risk or risk-free...

Sustainable investing is the buzzword in the market right now. But do they help the investors? Using new datasets with textual analysis, we find that the ESG does help the firm to reduce the risk during COVID-19

The trading events in the automotive industry across various countries worldwide encompass numerous interrelationships that have significant implications for decision-making regarding the capital allocation within the respective companies. Hence, this research aims to investigate and identify...

The article examines share allocation practices of over 300 initial public offerings (IPOs) in Hong Kong during the years immediately following the enacting of a ‘Claw-Back’ provision for IPO share reallocation. The examination of exhaustive micro-level data reveals that small (uninformed,...