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 »
Pierre Chaigneau and Nicolas Sahuguet
Review of Finance, Volume 29, Issue 3, May 2025, Pages 779–818, https://doi.org/10.1093/rof/rfaf012
How can corporate executives be motivated to generate both financial and social value? One approach is to integrate Environmental, Social, and Governance (ESG) performance metrics into executive compensation plans.… Read more...
Executive Compensation with Environmental and Social Performance Read More »
Donald E Bowen and Jérôme P Taillard
Review of Finance, Volume 29, Issue 3, May 2025, Pages 747–777, https://doi.org/10.1093/rof/rfaf010
The 2002 NYSE/NASDAQ board independence mandates allow us to study how changes in board composition affect firm performance. The mandates required firms to have a majority of independent directors, with two paths to compliance: (1) replacing non-independent directors with independent directors or (2) “reclassifying” existing non-independent directors as independent once they met certain criteria (such as being three years removed from prior employment at the firm).… Read more...
Revisiting Board Independence Mandates: Evidence from Director Reclassifications Read More »
Itzhak Ben-David, Mark J. Johnson, René M. Stulz
Review of Finance, Volume 29, Issue 3, May 2025, Pages 711–745, https://doi.org/10.1093/rof/rfaf009
The paper examines the resilience of data-driven lending during the unprecedented economic upheaval caused by the COVID-19 crisis, focusing specifically on small business fintech lending in March 2020.… Read more...
Models behaving badly: The limits of data-driven lending Read More »