We provide evidence for a specific challenge in the design of macroprudential policy, namely political interference. Using panel data from 80 countries over the period of 1990-2016, we uncover the electoral cycles in macroprudential policy. We show that a loosening in macroprudential policy...

More than half of the 163 Statements of Financial Accounting Standards issued by the Financial Accounting Standard Board (FASB) between 1973 and 2007 were passed with dissenting votes. In this study, we investigate the factors associated with FASB board members' decision to dissent. We find that...

We develop a model of political cycles driven by time-varying risk aversion. Agents choose to work in the public or private sector and to vote Democrat or Republican. In equilibrium, when risk aversion is high, agents elect Democrats---the party promising more redistribution. The model predicts...

We study how reverse and opportunistic electoral investments cycles affect the timing, characteristics and performance of governmental venture capital fund (GVC) investments. Consistently with the reverse electoral investment cycle, which characterizes private investment, GVCs on average...

We study the effect of a huge sports sentiment shock, unrelated to economic conditions or government actions, on stock market outcomes. After Brazil's 7-1 humiliating defeat to Germany in the 2014 World Cup, which is likely to be one of the largest sports sentiment shocks ever, the stock market...