The Capital Asset Pricing Model (CAPM) predicts that the expected return on a stock depends on its systematic risk as measured by its beta. However, recent empirical evidence suggests that the relation between beta and realized returns is weak or even non-existent. The traditional two-step...

The success of so-called neo-brokers has re-sparked the regulatory debate about potentially det- rimental effects of payment for order flow, culminating in a recent proposal by the Commission of the European Union to ban such arrangements. This study presents results of a field experiment...

This paper suggests a motive for bank mergers that goes beyond alleged and typically unverifiable scale economies: preemtive resolution of banks ́financial distress. Such "distress mergers" can be a significant motivation for mergers because they can foster reorganizations, realize...