Digests

The Failure of a Clearinghouse: Empirical Evidence
Vincent Bignon, Guillaume Vuillemey
Review of Finance, Volume 24, Issue 1, February 2020, Pages 99–128, https://doi.org/10.1093/rof/rfy039

Central clearing counterparties (CCPs) are critical institutions in post-crisis financial markets. The role of CCPs is to guarantee derivatives transactions against the failure of counterparties : they are thus supposed to reduce systemic risk and the potential for contagious failures of financial institutions.… Read more...

Specification Analysis of Structural Credit Risk Models
Jing-Zhi Huang, Zhan Shi, Hao Zhou
Review of Finance, Volume 24, Issue 1, February 2020, Pages 45–98, https://doi.org/10.1093/rof/rfz006

Empirical studies of structural credit risk models are usually carried out using calibration, rolling window estimation, or regression analysis.… Read more...

Some Borrowers Are More Equal than Others: Bank Funding Shocks and Credit Reallocation
Olivier De Jonghe, Hans Dewachter, Klaas Mulier, Steven Ongena, Glenn Schepens
Review of Finance, Volume 24, Issue 1, February 2020, Pages 1–43, https://doi.org/10.1093/rof/rfy040

This paper studies the strategic lending decisions made by banks after the freeze of the interbank funding market in September 2008.… Read more...

Does the Market for CEO Talent Explain Controversial CEO Pay Practices?
K. J. Martijn Cremers, Yaniv Grinstein
Review of Finance, Volume 18, Issue 3, July 2014, Pages 921–960, https://doi.org/10.1093/rof/rft024

Considerable debate remains among academics and practitioners regarding the economic forces that drive CEO compensation practices.… Read more...

Stock Market Literacy, Trust, and Participation
Adnan Balloch, Anamaria Nicolae, Dennis Philip
Review of Finance, Volume 19, Issue 5, August 2015, Pages 1925–1963, https://doi.org/10.1093/rof/rfu040

Why do households not hold stocks? A growing literature advocates that factors such as stock market return experience, lack of trust, educational attainment, financial sophistication and cognitive ability, explain the stock market non-participation puzzle.… Read more...

The Impact of Financial Advice on Trade Performance and Behavioral Biases
Daniel Hoechle, Stefan Ruenzi, Nic Schaub, Markus Schmid
Review of Finance, Volume 21, Issue 2, March 2017, Pages 871–910, https://doi.org/10.1093/rof/rfw032

A large fraction of households relies on financial advice when making investment decisions.… Read more...

Hidden Costs of Hidden Debt
Johan Almenberg, Artashes Karapetyan
Review of Finance, Volume 18, Issue 6, October 2014, Pages 2247–2281, https://doi.org/10.1093/rof/rft053

Results from authors’ survey on apartment owners’ knowledge about co-op and personal loans in Stockholm. Total apartment price = co-op debt+personal mortgage (+equity downpayment).… Read more...

Once Burned, Twice Shy? Financial Literacy and Wealth Losses during the Financial Crisis
Tabea Bucher-Koenen, Michael Ziegelmeyer
Review of Finance, Volume 18, Issue 6, October 2014, Pages 2215–2246, https://doi.org/10.1093/rof/rft052

The financial downturn and economic crisis of 2007 and 2008 stretched financial institutions, politicians, and corporations to their limits.… Read more...

Bank Regulation, CEO Compensation, and Boards
Julian Kolm, Christian Laux, Gyöngyi Lóránth
Review of Finance, Volume 21, Issue 5, August 2017, Pages 1901–1932, https://doi.org/10.1093/rof/rfw046

Bank compensation regulation is a new tool that was introduced after the financial crisis of 2008-2009.… Read more...

How Important Are Risk-Taking Incentives in Executive Compensation?
Ingolf Dittmann, Ko-Chia Yu, Dan Zhang
Review of Finance, Volume 21, Issue 5, August 2017, Pages 1805–1846, https://doi.org/10.1093/rof/rfx019

There is an extensive discussion whether risk-taking incentives play a role in executive compensation.… Read more...