We analyze whether four market-based measures of the global systemic importance of financial institutions offer early warning signals during three financial crises. The tests based on the 2007/2008 crisis show that only one measure (∆CoVaR) consistently adds predictive power to conventional...

We analyze the appointments of outside CEOs of financial and non-financial firms as independent directors on US bank boards and their implications for the banks and the outside CEO firms. We show that outside CEOs from financial firms match with less traditional banks and their appointment...

The production methods, financial requirements, and supply and demand characteristics of the contract clothing manufacturing sector are studied in order to determine why market exchange relationships within the sector are often untypical (in spite of low entry barriers and set-up costs).The...

We analyze the impact of information asymmetry on bank default risk in Europe from 1993 to 2011 and show that banks that are more difficult to value by investors are characterized by a higher default risk. The risk-increasing effect of information asymmetry is present both before and during the...

This paper examines country specific herding behavior in European liquid constituent indices for the period of 2001-2012. While we report insignificant results for the whole period, we document significant herding behavior during crises and asymmetric market conditions. Particularly, herding...

Measuring fund clientele by investors’ revealed usage of different asset pricing models, we show that funds with more CAPM investors perform better, all else equal. This predictability is not because the CAPM-alpha predicts future fund performance but because it reflects investor...

Signaling theories of the pricing of initial public offerings are based on an equilibrium which separates high from low quality companies. In empirically testing these theories one issue which needs addressing is how to identify high and low quality companies. This paper develops a new test of...