The Managing Editor’s Report for 2024/25 is available here. Some highlights include:
Managing Editor’s Report 2024/25 Read More »
We are pleased to announce that Issue 4 of Volume 29 of the Review of Finance is now available.
Issue 4 is now available! Read More »
Tu Nguyen, Sandy Suardi, Jing Zhao
Review of Finance, Volume 29, Issue 4, July 2025, Pages 1259–1302, https://doi.org/10.1093/rof/rfaf026
This study investigates the systemic implications of industry tournament incentives—the external pay disparities among CEOs across similar firms—for financial stability. Motivated by Coles, Li, and Wang (2020), who argue that industry tournament incentives increase managerial risk-seeking behavior, we extend their insight to assess whether these incentives contribute to systemic risk in the financial sector.… Read more...
Industry Tournament Incentives and the U.S. Financial Systemic Risk Read More »
Bastian von Beschwitz , Pekka Honkanen , Daniel Schmidt
Review of Finance, Volume 29, Issue 4, July 2025, Pages 1137–1188, https://doi.org/10.1093/rof/rfaf023
Over the past two decades, passive investment has transformed financial markets, with passive funds surpassing active funds in assets under management in 2019.… Read more...
Passive Ownership and Short Selling Read More »
Marta Cota
Review of Finance, Volume 29, Issue 4, July 2025, Pages 1105–1136, https://doi.org/10.1093/rof/rfaf021
Biased income expectations shape retirement savings in ways that traditional policy models often overlook. In this paper, I outline a mechanism under which low-income workers, typically pessimistic about future earnings, delay retirement contributions, prioritizing liquidity as a buffer against uncertainty.… Read more...
Extrapolative Income Expectations and Retirement Savings Read More »
Lykourgos Alexiou, Amit Goyal, Alexandros Kostakis, Leonidas Rompolis
Review of Finance, Volume 29, Issue 4, July 2025, Pages 963–1007, https://doi.org/10.1093/rof/rfaf016
We document that the implied volatility (IV) curves of equity options frequently exhibit concavity prior to the earnings announcement dates (EAD).… Read more...
Pricing Event Risk: Evidence from Concave Implied Volatility Curves Read More »
Organisers: CEPR, European Central Bank, Review of Finance and Bocconi University (local host). Guest Editors Elena Carletti, Dirk Niepelt, Marcus M. Opp (Sponsoring RoF Editor), Claudio Tebaldi.
Date and Venue: A two-day conference will take place in Milan on September 25–26, 2025.… Read more...
We are pleased to announce that Issue 3 of Volume 29 of the Review of Finance is now available.
Issue 3 of Volume 29 of the Review of Finance is now available! Read More »
Hao Liang and Cara Vansteenkiste
Review of Finance, Volume 29, Issue 3, May 2025, Pages 851–886, https://doi.org/10.1093/rof/rfaf007
Corporate philanthropy often sparks debate about its impact on shareholder value, particularly in response to natural disasters. Is it a strategic move to enhance reputation, or does it reflect managerial agency problems?… Read more...
Disaster Relief, Inc.: When Is Corporate Philanthropy Good or Bad for Shareholders Read More »
Giorgia Simion and Ugo Rigoni
Review of Finance, Volume 29, Issue 3, May 2025, Pages 819–850, https://doi.org/10.1093/rof/rfaf014
As retail bond issuance can serve as an important funding source for banks during periods of market stress, it raises concerns about potential conflicts of interest between banks and their clients.… Read more...
Understanding Households’ Bank Bond Holdings Read More »