We conjecture that the forward puzzle may reflect career risks: when professional investors observe public danger signals about a currency, they require a premium for holding it. We find evidence of this in ERM rates. As deep discounts do signal danger, we next specify nonlinear variants of the...

We use a difference-in-differences approach, and find that, on average, SWF investments are negatively related to target firms’ corporate governance. This impact holds for small SWF cross-border equity investments only, and is stronger for firms that are weakly governed and for those located...