Foresight: The Future of Computer Trading in Financial Markets
SRC researchers were involved in a study that explores how computer generated trading in financial markets will evolve over the next 10 years. The...
From Female Labor Force Participation to Boardroom Gender Diversity
The list of barriers to female representation in management is analogous to the list of barriers to female labor force participation. Accordingly, we...
International Correlation Risk
We provide novel evidence of priced correlation risk in the foreign exchange market. Currencies that perform badly (well) during periods of high...
What should we do about (Macro) Pru? Macro Prudential Policy and Credit
Credit growth is widely used as an indicator of potential financial stress, and it plays a role in the new Basel III framework. However, it is not...
Taming the finance monster
The best way to resolve global financial instability is for the owners of capital to assert themselves, with sovereign funds well positioned to take...
Maintaining Confidence - Understanding and preventing a major financial institution failure mode
This paper proposes the solvency/liquidity spiral as an failure mode affecting large financial institutions in the recent crisis. The essential...
Bank Capital Standards: A critical review
The aim of this paper is to review the significant flaws in the Basel Accords, which undermine their contribution to stability in banking and...
A Coasean Approach to Bank Resolution Policy in the Eurozone
The Eurozone needs a bank resolution regime that can work across seventeen independent nations of diverse sizes with varying levels of financial...
A flow-based explanation for return predictability
Review of Financial Studies, 25 (12). pp. 3457-3489.
Shareholder Empowerment and Bank Bailouts
We investigate the hypothesis that shareholder empowerment may have led to more bank bailouts during the recent financial crisis. To test this...
Adjustment Mechanisms in a Currency Area
Both the euro-area and the United States suffered an initially quite similar housing and financial shock in 2007/8, with several states in both...
Bankers and bank investors: Reconsidering the economies of scale in banking
We study economies of scale in banking by viewing banks as combinations of financial and human capital that create rents which accrue to investors and...
Agency, Firm Growth, and Managerial Turnover
We study managerial incentive provision under moral hazard in a firm subject to stochastic growth opportunities. In our model, managers are dismissed...
Do Standard Corporate Governance Practices Matter in Family Firms?
We study the unique governance dynamics surrounding family ownership in a voluntary regulatory arena where we can directly observe the impact of firm...