China may soon become the world’s largest economy, but most academic research in top journals is based on U.S. data. The insights from papers on U.S. data may not automatically apply to China, since it has a unique set of institutional features, hence the need for research specific to China. … Read more...
Call for Papers for Review of Finance Special Issue on China Read More »
The COVID-19 pandemic is a serious crisis. To understand its effects, and to guide policy responses, we need evidence. However, since the crisis is recent, we do not yet have enough data to understand its long-term effects; since some policy responses have not yet been tried, or have only recently been implemented, we are unable to assess their success. … Read more...
Virtual Issue: Effects and Responses to Economic Downturns Read More »
Trade Less and Exit Overcrowded Markets: Lessons from International Mutual Funds
Teodor Dyakov, Hao Jiang, Marno Verbeek
Review of Finance, Volume 24, Issue 3, May 2020, Pages 677–731, https://doi.org/10.1093/rof/rfz014
We study active investment skills in relation to returns to scale in the active mutual fund industry.… Read more...
Trade Less and Exit Overcrowded Markets: Lessons from International Mutual Funds Read More »
Shuffling through the Bargain Bin: Real-Estate Holdings of Public Firms
Irem Demirci, Umit G Gurun, Erkan Yönder
Review of Finance, Volume 24, Issue 3, May 2020, Pages 647–675, https://doi.org/10.1093/rof/rfz010
Collateral is an important aspect of debt contracts, and particularly when the borrower falls short on liquidity or defaults on its debt, asset-specific factors that determine the liquidation value of the collateral become a concern for the lender.… Read more...
Shuffling through the Bargain Bin: Real-Estate Holdings of Public Firms Read More »
How Rational and Competitive Is the Market for Mutual Funds?
Markus Leippold, Roger Rueegg
Review of Finance, Volume 24, Issue 2, March 2020, Pages 579–613, https://doi.org/10.1093/rof/rfz011
How rational and competitive is the market for mutual funds? The answer is: very.… Read more...
How Rational and Competitive Is the Market for Mutual Funds? Read More »
Loan Officer Incentives, Internal Rating Models, and Default Rates
Tobias Berg, Manju Puri, Jörg Rocholl
Review of Finance, Volume 24, Issue 3, May 2020, Pages 529–578, https://doi.org/10.1093/rof/rfz018
Manipulation of information has been at the center of a wave of recent investigations into fraudulent bank behavior.… Read more...
Loan Officer Incentives, Internal Rating Models, and Default Rates Read More »
Higher Bank Capital Requirements and Mortgage Pricing: Evidence from the Counter-Cyclical Capital Buffer
Christoph Basten
Review of Finance, Volume 24, Issue 2, March 2020, Pages 453–495, https://doi.org/10.1093/rof/rfz009
Basel III introduced the macroprudential tool Counter-Cyclical Capital Buffer (CCyB) as capital requirements that policy-makers can temporarily increase when lending appears excessive.… Read more...
Financial Loss Aversion Illusion
Christoph Merkle
Review of Finance, Volume 24, Issue 2, March 2020, Pages 381–413, https://doi.org/10.1093/rof/rfz002
Loss aversion has been frequently documented in psychology and economics, with the conclusion that losses loom larger than gains by a magnitude of about two.… Read more...
Financial Loss Aversion Illusion Read More »
Yield Spreads and the Corporate Bond Rollover Channel
Florian Nagler
Review of Finance, Volume 24, Issue 2, March 2020, Pages 345–379, https://doi.org/10.1093/rof/rfz005
When firms have exposure to rollover maturing bonds their rollover costs depend on the liquidity in the market.… Read more...
Yield Spreads and the Corporate Bond Rollover Channel Read More »
Managerial Short-Termism and Investment: Evidence from Accelerated Option Vesting
Tomislav Ladika, Zacharias Sautner
Review of Finance, Volume 24, Issue 2, March 2020, Pages 305–344, https://doi.org/10.1093/rof/rfz012
Do managers sometimes boost short-term performance at the expense of long-run value? Financial analysts and policymakers frequently express concern about managerial short-termism.… Read more...
Managerial Short-Termism and Investment: Evidence from Accelerated Option Vesting Read More »