Internal versus External Liquidity: Investment Efficiency under Market Frictions
This paper analyses how firms respond to liquidity shocks when asset prices are endogenously determined through matching frictions. Building on...
The Network Drivers of Trade Currency Invoicing
Using an equilibrium network model and a large international panel of cross-border trade, we analyse empirically the drivers of foreign currency...
Equity Valuation Without DCF
We introduce discounted alpha - a novel framework for equity valuation. By correcting market prices rather than discounting long-horizon cash flows...
Market Information and the Impact of Public Health Insurance on the Private Insurance Market
We analyse how public health insurance affects private insurance markets in mixed public-private systems. Extending the standard selection framework...
Share Issues versus Share Repurchases
Almost all firms repurchase shares through open-market repurchase programs. In contrast, issue methods are more diverse: at-the-market offerings...
Macro Strikes Back: Term Structure of Risk Premia
We provide a novel priced Wold representation that, using the pricing restrictions of a large cross-section of asset returns, sharply identifies...
The Day Destroys the Night, Night Extends the Day: A Clientele Perspective on Equity Premium Variation
We provide a powerful new predictor of the equity premium: Smoothed past overnight market returns strongly negatively forecast the quarterly close-to...
Regulator Model-Implied Beliefs
Financial regulations rely on regulator-controlled models to generate probabilistic forecasts which determine firm constraints. I refer to these...
Anatomy of the Treasury Market: Who Moves Yields?
Factor regressions provide a model-agnostic way to identify what drives Treasury yields, but not which investors respond. We develop an equilibrium...
Research highlight
The Micro and Macro Dynamics of Capital Flows
The Review of Economic Studies, rdag066
Artificial Intelligence in the Boardroom
We analyze how the use of artificial intelligence affects the monitoring and advisory relationship between CEOs and corporate boards. AI can serve as...
The Impact of Uncertainty Shocks on Workforce Composition
We construct a firm-specific profit uncertainty index and profit shocks for Swedish firms and their employees (1997-2017) using shrinkage methods on...
Bankruptcy Law and the Market for Corporate Influence
The canonical view of bankruptcy law is that it solves a market failure by imposing a collective choice process that supplants the market. We propose...
Corporate Bond Multipliers: Substitutes Matter
Many economic questions require estimating the price effect of demand shifts (multipliers) in the bond market. Corporate bonds have salient...
Leverage, Engagement, and Welfare in Decentralised Financial Markets
Can financial intermediaries help solve the externalities of the real-economy, even when all investors are purely return-driven? This paper develops a...
