There is evidence that machine learning (ML) can improve the screening of risky borrowers, but the empirical literature gives diverse answers as to the impact of ML on credit markets. We provide a model in which traditional banks compete with fintech (innovative) banks that screen borrowers...

This study presents the first comprehensive compilation of the number of people around the world who own shares directly and indirectly. We document that at least 310 million people in 59 countries (24 developed and 35 emerging market nations) own stock directly [Table 1]. Nearly 173 million of...

This paper analyses the regulatory attitudes to asset valuation in the 20th century. It focuses in particular on the U.S. experience from Smith v Ames 169 U.S. 466 (1898) to Federal Power Commission v Hope Natural Gas 320 U.S. 591 (1944) and on the experience in the U.K. in last two decades of...

In this paper, we look at the effect of the financial crisis from an angle overlooked to date in the finance literature by investigating composition effects arising from the financial crisis. A composition effect is a change in the market risk of a sector that is caused not by a direct change in...

The paper outlines various measures of profitability and considers what role they can play in competition law. We argue that profitability measures can provide a good answer to the wrong question and a much less good answer to the question we really want to answer. Using appropriate definitions...

Circularity arises in regulation if the value of a company's assets used to set prices is itself determined by future earning capacity. The view that it is not possible to determine values and prices in these circumstances has become well established in the literature. Textbooks have...

Traditional portfolio diversification arguments suggest that if executives are granted options then they should hold less company stock than they would otherwise have done, diluting the incentive effects. There is little evidence, however, that companies do anything to prevent this and the...

Traditional portfolio diversification arguments suggest that if executives are granted options then they should hold less company stock than they would otherwise have done, diluting the incentive effects. There is little evidence, however, that companies do anything to prevent this and the...

This study presents the first comprehensive compilation of the number of people around the world owning shares voluntarily. We document that at least 317 million people in 70 countries (24 developed and 46 emerging market nations) invest in equity of publically listed companies or mutual funds....

Understanding the impact of changes in regulation on market risk is crucial but there is no literature giving clear evidence that market risk responds to expected changes in regulation designed to change risk (mostly because of a dearth of cases where the risk effect is isolated). This paper...