Finance
The growing popularity of cryptocurrencies has helped fuel interest in decentralized finance, or DeFi, a financial system designed to operate without traditional intermediaries such as…
How Public Sentiment on the Economy Shapes Hedge Fund Returns
Economists have long used measures of public sentiment about the economy to forecast financial outcomes such as consumer spending and economic growth. New research from…
Sector Indices May Not Tell the Full Financial Story of S&P 500 Companies
Investors and analysts often compare companies operating within the same sector, assuming that businesses in similar industries share important financial characteristics. However, a study examining…
Why Bigger Isn’t Always Better for Bank Networks
Interbank lending can help banks cope with unexpected withdrawals by allowing connected institutions to share liquidity when it is needed. But these connections can also…
High Expectations, Bigger Disappointments: ESG Downgrades Weigh Most on Optimistic Investors
A new study from Murdoch University has found that Environmental, Social and Governance (ESG) downgrades can trigger significantly larger share price losses when they come…
Credit Ratings and Corporate Financing Strategies
On the surface, credit rating agencies assess a company’s financial health by examining its debt, equity, and ability to meet financial obligations. They assign letter…
A Better Approach to Federal Stress Testing
Could another financial crisis on the scale of 2008 happen again? And if it did, how well would today’s banks withstand the shock? To answer…
Islamic Bonds Boosted Corporate Capital Access
In the late 1990s, Malaysia introduced a new way for corporations to raise capital by allowing the issuance of Shariah-compliant bonds, known as sukuk. Unlike…
Housing Market Inflated by Pandemic Loan Fraud
For many Americans hoping to buy a home, the past several years have been exceptionally difficult. Between the end of 2019 and the end of…
Higher Board Interpersonal Diversity Correlates with Reduced Tax Avoidance Practices
New research analysing two decades of corporate data suggests that greater board interpersonal diversity is associated with lower levels of aggressive tax avoidance. The findings…
Artificial Intelligence Gauges Corporate Complexity
Warren Buffett once advised that you should never invest in a business you cannot understand. Yet, that principle has not deterred many investors from backing…
Delays Persist in Financial Justice for Older Americans and Veterans
When a bank wrongly charges fees, a debt collector pursues someone over a disputed bill, or a mortgage servicer misapplies payments, Americans do have a…