This study applies a novel way of measuring, quantifying and modelling the systemic risk within the financial system. The magnitude of risk spill over effects is gauged by introducing a specific weighting scheme. This approach originally stems from spatial econometrics. The methodology allows...

Cross-sectional asset pricing tests with GMM can generate spuriouslyhigh explanatory power for factor models when the moment conditions are specifiedsuch that they allow the estimated factor means to substantially deviate from theobserved sample averages. In fact, by shifting the weights on the...

This paper shows how the average maturity of corporate bonds can affect the transmission of shocks if financial frictions prevail. We modify a standard financial accelerator model à la Bernanke, Gertler, and Gilchrist (1999) and allow for market-based debt which has a market-determined price....

In this paper, we discuss the consequences of imperfect information about financial frictions on the macroeconomy. We rely on a New Keynesian DSGE model with a banking sector in which we introduce imperfect information about a limited enforcement problem. Bank managers divert resources and can...

The OECD Guidelines for the responsible business conduct of Multinational Enterprises is one of the largest corporate social responsibility programs (CSR) in the world. By February 2021, 501 allegations of misconduct by multinational companies have been brought to the attention of the National...

This study examines managerial disciplining in poorly performing firms using large panels for Belgian, French, German and UK firms. We consider the monitoring role of large blockholders, the market for share blocks, creditors, and non-executive directors. Board restructuring is correlated to...

Political parties play a crucial gatekeeping role in elections, including controlling electoral resources, candidate recruitment, and electoral list compositions. In making these strategic choices, parties aim to encourage candidates to invest in the campaign, while also trying to secure...

We present and test a theory of prospective and retrospective pocketbook voting. Focusing on two large reforms in Sweden, we establish a causal chain from policies to sizeable individual gains and losses and then to voting. The Social Democrats proposed budget cuts affecting parents with young...

Regression discontinuity designs (RDD) are widely used in the social sciences to estimate causal effects from observational data. Scholars can choose from a range of methods that implement different RDD estimators, but there is a paucity of research on the performance of these different...