Polarization, Purpose and Profit
We present a model in which firms compete for workers who value nonpecuniary job attributes, such as purpose, sustainability, political stances, or...
Marketwide Memory
We propose a novel measure that allows us to study memory associations in financial markets over the course of several decades. Using our measure, we...
The surprising leadership effect accelerators have on startup employees
Entrepreneurship training programs across the world aim at boosting the success of startups. But even when startups fail, these programs bring...
Bond Supply, Yield Drifts, and Liquidity Provision Before Macroeconomic Announcements
UK government bond yields tend to rise in a two-day window before labor market data releases and monetary policy news. This effect, particularly...
Causal Narratives
We study causal narratives – narratives which describe a (potentially incorrect) causal relationship between variables. In a series of experiments...
Research highlight
Reaching for Yield: Evidence from Households
Journal of Financial Economics, 168, 104057
Arbitrage Networks
This paper studies the general equilibrium implications of arbitrage trades in segmented financial markets. Arbitrageurs choose a category of trades...
When Private Firms Provide Public Goods: The Allocation of CSR Spending
This paper studies how firms allocate their Corporate Social Responsibility (CSR) expenditures to inform the welfare effects of corporate...
How central banks can meet the financial stability challenges arising from artificial intelligence
The growing use of artificial intelligence (AI) poses difficult challenges for the financial authorities. AI allows private-sector firms to optimise...
Five systemic threats and what to do about them
Systemic financial risk has both internal and external drivers. So, when we focus too strongly on preventing internal crises, such as the 2008 Global...
Financial instability transition under heterogeneous investments and portfolio diversification
We analyze the stability of financial investment networks, where financial institutions hold overlapping portfolios of assets. We consider the effect...
Corporate Social Responsibility Committee: International Evidence
We provide worldwide large-sample evidence of a recent innovation in corporate governance: the voluntary creation of a separate board committee to...
Private Companies: The Missing Link on The Path to Net Zero
A global consensus is growing on the contribution that corporations and finance must make towards the net-zero transition in line with the Paris...
Is the market about to sort?
The anti-ESG backlash could have an unexpected upside for European index fund managers.
Inferring Mutual Fund Intra-Quarter Trading - An Application to ESG Window Dressing
We develop a novel method to infer intra-quarter trading of individual mutual funds. After a mutual fund executes a trade, its reported portfolio...
