2025

Marco Pagano and Luca Picariello
Review of Finance, Volume 29, Issue 2, March 2025, Pages 349–379, https://doi.org/10.1093/rof/rfae042

This paper explores the impact of corporate governance standards on firms’ hiring and promotion policies, focusing on meritocracy versus power retention by entrepreneurs. Effective corporate governance can influence firms to adopt meritocratic practices, promoting skilled employees based on merit rather than favoritism.… Read more...

Meng Han, Lammertjan Dam, Walter Pohl
Review of Finance, Volume 29, Issue 2, March 2025, Pages 315–347, https://doi.org/10.1093/rof/rfae043

In financial markets, price variation generally reflects variation in discount rates rather than in expected cash flows, a pattern observed in many asset markets. … Read more...

Rebel A Cole, Jason Damm, John Hackney, Masim Suleymanov
Review of Finance, Volume 29, Issue 1, January 2025, Pages 275–313, https://doi.org/10.1093/rof/rfae037

In the U.S., state-level exemption laws determine the amount of property that individuals can protect from creditor liquidation during the debt settlement process of bankruptcy proceedings.… Read more...

Amit Goyal, Narasimhan Jegadeesh, Avanidhar Subrahmanyam
Review of Finance, Volume 29, Issue 1, January 2025, Pages 241–273, https://doi.org/10.1093/rof/rfae038

Ever since the publication of Jegadeesh and Titman (1993), the profession has been puzzling over the causes of stock return momentum (the tendency for the relative performance of stocks over the past 3-12 months to repeat itself).… Read more...

Agostino Capponi, Albert J. Menkveld, Hongzhong Zhang
Review of Finance, Volume 29, Issue 1, January 2025, Pages 201–239, https://doi.org/10.1093/rof/rfae036

Institutional investors have become so large in many markets that their orders experience substantial price impact.  In response, they started to algorithmically shred the order into smaller pieces that are sent to the market over a particular time interval. … Read more...

Andreas Johansson, Riccardo Sabbatucci, Andrea Tamoni
Review of Finance, Volume 29, Issue 1, January 2025, Pages 103–139, https://doi.org/10.1093/rof/rfae034

We construct tradable risk factors for institutional and retail investors by combining large, liquid mutual funds for the long leg and ETFs for both long and short legs.… Read more...

Tomas Breach, Thomas B King
Review of Finance, Volume 29, Issue 1, January 2025, Pages 33–73, https://doi.org/10.1093/rof/rfae033

Short-term borrowing arrangements collateralized by financial assets—collectively referred to as “securities financing” transactions—are key mechanisms through which investors obtain leverage and engage in arbitrage. … Read more...

Ohad Kadan, Asaf Manela
Review of Finance, Volume 29, Issue 1, January 2025, Pages 1–32, https://doi.org/10.1093/rof/rfae040

In financial markets, the value of information is a crucial factor for investors, analysts, and money managers who allocate resources to research assets. Understanding how much investors would pay for information has broad implications, from determining security analysts’ compensation to penalizing insider trading.… Read more...