Purpose – Study the role of sovereign wealth funds (SWFs) as an example of foreign and politically connected large shareholders, and their impact on firm value. Methodology/approach – Use a sample of SWF large U.S. investments where SWFs intend to actively engage with management to analyze...

This chapter examines crisis propagation mechanisms to the Southeast European exchange-rate markets during the 1998 Russian crisis and the Turkish crisis of 2001. It focuses on whether and how the crises spread to these markets after interdependencies and common external shocks are accounted...

We empirically examine how the global carry trade affects the dynamics of spot exchange rates and interest rates across 13 countries from 2000, through the world financial crisis, until the end of 2011. Our model identifies the weekly carry trade position in each currency by matching data on...

This article presents an overview of research on the Microstructure of Foreign Exchange Markets. We begin by summarizing the institutional features of FX trading and describe how they have evolved since the 1980s. We then explain how these features are represented in microstructure models of FX...

Electronic trading has transformed foreign exchange markets over the past decade, and the pace of innovation only accelerates. This formerly opaque market is now fairly transparent and transaction costs are only a fraction of their former level. Entirely new agents have joined the fray,...