In this paper, we discuss the potential economic consequences of IFRS 13 endorsement in the European Union. Our focus is on private equity valuation.We review prior research and perform a field-test in order to shed light on the possible effects of its adoption.Our paper questions whether fair...

In this paper we study empirically the implications of macroeconomic disagreement for the time variation in bond market risk premia. If there is a source of heterogeneity in the belief structure of the economy then differences in beliefs can affect equilibrium asset prices, and the dynamics of...

This study provides new evidence on the impact of governance on the performance of privately defined contribution pension plans. Using a hand collected data set on governance factors, the study shows that the external and internal governance mechanisms in pension plans are weak. One explanation...

We propose a novel mechanism to facilitate understanding of systemic risk in financial markets. The literature on systemic risk has focused on two mechanisms, common shocks and domino-like sequential default. Our approach is a formal model that provides an intellectual combination of the two by...

This paper investigates whether the availability of credit insurance via credit default swaps (CDS) has inuenced the debt restructuring process in a sample of U.S. reference entities. Contrary to the predictions of the empty creditors theory, we do not find evidence that the presence of CDS...

The recent financial turmoil has refuelled the debate on the effectiveness of supervision and the overall architecture for the safeguard and stability of the international financial system. From this perspective, the design of the right incentives for a sounder and more prudent management of...

Using a sample of 50 countries during 2000-2008, this study investigates the possible impact of insurance regulations on life insurance consumption. The evidence reveals a negative and statistically significant association between supervisory control of the policy conditions of life annuities...

We examine the structure of lending syndicates formed to provide credit to the non-financial U.S. firms between 1990 and 2007. We find a significant relationship between the level of shareholder rights (as proxied by GIndex) of the borrowing firms and composition of their lending syndicate....

In this paper we realize an early warning system for hedge funds based on specific red flags that help to detect symptoms of impending extreme negative returns and contagion effect. To do this we rely on regression trees analysis identifying a series of splitting rules which act as risk signals....