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Pagano, Marco; Immordino, Giovanni - 2021

We study regulation of the auditing profession in a model where audit quality is unobservable and enforcing regulation is costly. The optimal audit standard falls short of the first-best audit quality, and is increasing in the riskiness of firms and in the amount of funding they seek. The model...

Persistent link: https://www.econbiz.de/10013317070

The Effect of Regulatory Harmonization on Cross-Border Labor Migration : Evidence from the Accounting Profession

Bloomfield, Matthew J. - 2016

The paper examines whether international regulatory harmonization increases cross-border labor migration. To study this question, we analyze European Union (EU) initiatives that harmonized accounting and auditing standards. Regulatory harmonization should reduce economic mobility barriers,...

Persistent link: https://www.econbiz.de/10013000840

Asymmetries in Earnings, Employment and Wage Risk in Great Britain

Angelopoulos, Konstantinos - 2017

This paper examines the relationship between idiosyncratic risk in labour income and fluctuations in aggregate labour … BHPS sub-sample of Understanding Society for 2010-2014. We measure idiosyncratic risk in labour income by the relevant … idiosyncratic risk increases during contractions in the labour market. Furthermore, we find evidence of insurance, both at the …

Persistent link: https://www.econbiz.de/10012958452

Brexit and Uncertainty in Financial Markets

Caporale, Guglielmo Maria; Gil-Alaña, Luis A.; Trani, … - 2021

This paper applies long-memory techniques (both parametric and semi-parametric) to examine whether Brexit has led to any significant changes in the degree of persistence of the FTSE 100 Implied Volatility Index (IVI) and of the British pound’s implied volatilities (IVs) vis-à-vis the main...

Persistent link: https://www.econbiz.de/10013315435

Why Does Idiosyncratic Risk Increase with Market Risk

Bartram, Söhnke M. - 2017

From 1963 through 2015, idiosyncratic risk (IR) is high when market risk (MR) is high. We show that the positive … has roots in fundamentals. Higher market risk predicts greater idiosyncratic earnings volatility as well as dispersion and …

Persistent link: https://www.econbiz.de/10012950299

Systematic Consumption Risk in Currency Returns

Hoffmann, Mathias - 2013

boom yields consistently positive excess returns. This excess return compensates for the risk of high negative returns in … countries on risk aversion, and low (high) risk aversion currencies depreciate (appreciate) in times of global turmoil …

Persistent link: https://www.econbiz.de/10013080499

Proprietary Income, Entrepreneurial Risk, and the Predictability of U.S. Stock Returns

Hoffmann, Mathias - 2021

.S. stock market wealth. Fluctuations in entrepreneurs' hunger for risk could therefore help explain time variation in the … fluctuations in proprietary income, is highly correlated with cross-sectional measures of idiosyncratic entrepreneurial risk and … as entrepreneurial risk has become more easily diversifiable in the wake of U.S. state-level bank deregulation …

Persistent link: https://www.econbiz.de/10013317587

The Heterogeneous Impact of Brexit : Early Indications from the FTSE

Davies, Ronald B. - 2017

The UK's decision to leave the EU is surrounded by several studies simulating its potential effects. Alternatively, we examine expectations embodied in stock returns using a two-part estimation process. While most firms' prices fell, there was considerable heterogeneity in their relative...

Persistent link: https://www.econbiz.de/10012954358

No-Trade in the Laboratory

Angrisani, Marco; Guarino, Antonio; Huck, Steffen; … - CESifo - 2008

We test the no-trade theorem in a laboratory financial market where subjects can trade an asset whose value is unknown. Subjects receive clues on the asset value and then set a bid and an ask at which they are willing to buy or to sell from the other participants. In treatments with no gains...

Persistent link: https://www.econbiz.de/10005406359

Monetary Policy with Diverse Private Expectations

Kurz, Mordecai; Motolese, Maurizio; Piccillo, Giulia; … - CESifo - 2015

We study the impact of diverse beliefs on conduct of monetary policy. We use a New Keynesian Model solved with a quadratic approximation. Aggregation renders the belief distribution an aggregate state variable. Diverse expectations change standard results about a smooth trade-off between...

Persistent link: https://www.econbiz.de/10011205380