The current interest in sustainable resources by business begs the questions: does sustainability affect the value of the firm, and if so, would it's effect be detectable on the firm value? I propose a model where a possibly polluting input is part of the firm's production function. I find that...

The recent changes in the Chinese currency regime are examined by proposing, that due to a misunderstanding, the Chinese government was assumed to be adopting a currency basket, when their announced intention was really a period of “experimentation” that is intended to eventually lead to a...

I examine the theoretical determinants for US and European credit default swap spreads. In contrast to previous results, I find that interest rates play a smaller role in determining spreads, and that other equity factors, such as momentum and the Fama-French small-minus-big factor play...

As pointed out by Henisz (2000) and others, political policy can effect stock market returns through two basic ways: Macroeconomically, where arbitrary changes in economic policy, regulation and taxation can lead to greater investment uncertainty, thus leading to an overall increase in the price...

The effect of European Central Bank monetary policy upon EONIA swap spreads is investigated with GARCH-Jump models. I find that monetary policy, as expressed through the MRO (Main Refinancing Operations) rate, has an inverse relationship with the spread in EONIA swaps. At the same time, monetary...

I construct a neoclassical model of investment for a firm that greenwashes its commitment to corporate social responsibility in exaggerating its minimization of using polluting inputs and maximizing its investment in social capital. I assume that greenwashing allows the firm some pricing power...

I find that Managerial and Investor Sentiment are determined by differing sets of economic variables, that share some common factors: Inflation, Liquidity and the Term Premium. Decomposing the Sentiment Indices, I find that the Investor Sentiment Model Component and the Managerial Sentiment...

Using an APT model where global temperature shocks are a systematically priced factor, the risk premium is significant and positive. Evidence is provided that positive exposure to temperature shocks is related to increasing CO2 emissions by an industry or region. The global impact on the cost of...