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...
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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...
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One Central Bank to Rule them All (Editor’s Choice)
Francesca Brusa, Pavel Savor, Mungo Wilson
Review of Finance, Volume 24, Issue 2, March 2020, Pages 263–304, https://doi.org/10.1093/rof/rfz015
Stock markets across the globe universally enjoy high returns on days surrounding FOMC meetings, which account for the bulk of the global equity risk premia in recent decades.… Read more...
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Mood, Memory, and the Evaluation of Asset Prices
Aaron L Bodoh-Creed
Review of Finance, Volume 24, Issue 1, February 2020, Pages 227–262, https://doi.org/10.1093/rof/rfz001
I model the effect of associative memory on asset prices. The model includes mood-congruent memory, which predicts that the subjective goodness (or badness) of the agent’s affective state (e.g.,… Read more...
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Follow the Leader: Using the Stock Market to Uncover Information Flows between Firms
Anna Scherbina, Bernd Schlusche
Review of Finance, Volume 24, Issue 1, February 2020, Pages 189–225, https://doi.org/10.1093/rof/rfy038
News developments experienced by one firm, such as labor force scandals, intellectual property disputes, or geopolitical challenges encountered in other countries, can also impact other firms in similar circumstances.… Read more...
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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...
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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...
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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...
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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...
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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...
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