Digests

Kartik Anand, Chanelle Duley, Prasanna Gai
Review of Finance, Volume 30, Issue 3, May 2026, Pages 1109–1150, https://doi.org/10.1093/rof/rfaf079

Cyber risks have emerged as a major threat to financial stability, with recent incidents demonstrating how cyberattacks can disrupt critical market infrastructure.… Read more...

Matthieu Chavaz, David Elliott
Review of Finance, Volume 30, Issue 3, May 2026, Pages 1071–1108, https://doi.org/10.1093/rof/rfaf071

Whether banks’ retail and investment banking activities should be separated has been debated since at least the Glass-Steagall Act of 1933. In the US and Japan, banks must split these activities into separate subsidiaries, whereas European and Canadian banking groups can operate as integrated “universal” banks.… Read more...

Olga Balakina, Claes Bäckman, Andreas Hackethal, Tobin Hanspal, Dominique M Lammer
Review of Finance, Volume 30, Issue 3, May 2026, Pages 1029–1069, https://doi.org/10.1093/rof/rfaf077

Family and friends are important sources of advice, including for financial decisions. Recent survey data indicate that 25 percent of surveyed investors rely on information `somewhat’ or `a great deal’ from friends, family, and colleagues when forming investment decisions, comparable to the reliance on financial advisors (27 percent) and significantly higher than information from social media (12 percent).… Read more...

Irem Erten, Ioana Neam?u, John Thanassoulis
Review of Finance, Volume 30, Issue 3, May 2026, Pages 995–1028, https://doi.org/10.1093/rof/rfaf076

We study the impact of ring-fencing on bank riskiness using short-term money markets. Ring-fencing is when the government restricts some banking activities to a subsidiary of the group whilst restricting intra-group transfers.… Read more...

Alexander Tuft and Emmanuel Yimfor
Review of Finance, Volume 30, Issue 2, March 2026, Pages 717–756, https://doi.org/10.1093/rof/rfaf057

We provide the first causal evidence that relationships between venture capital firms and investment banks matter enormously for accessing public markets. When VCs lose an established underwriter relationship through bank mergers or closures, their IPO exits fall by 9.5% and fund returns drop by 7.8%.… Read more...

I-Hsuan Ethan Chiang and Xi Nancy Mo
Review of Finance, Volume 30, Issue 2, March 2026, Pages 681–715, https://doi.org/10.1093/rof/rfaf047

This paper introduces a novel two-beta currency pricing model and uses it to analyze currency trading strategies. Literature on currency risk premiums has identified the predominant common factor in currency returns as the “dollar factor,” an equally weighted portfolio of floating exchange rate currencies.… Read more...

Stefano Lovo and Jacques Olivier
Review of Finance, Volume 30, Issue 2, March 2026, Pages 597–637, https://doi.org/10.1093/rof/rfaf060

We model the decision of a Rating Agency (RA) whether to adopt an “issuer pays” or “investors pay” business model, with the aims to explain why Environmental, Social, and Governance (ESG) ratings are predominantly paid by investors while credit ratings are paid by firms, and to analyze the implications of the choice for firms’ expected stock price and ESG performance.… Read more...