Regulators around the world often react to financial crises by restricting short sales of bank stocks to maintain financial stability. Then, a natural question to ask is whether these short-selling restrictions end up alleviating unwarranted price drops for banks and hence protect vulnerable financial institutions. In a forthcoming RCFS paper, “Short-Selling Bans and Bank Stability,” Alessandro Beber, Daniela Fabbri, Marco Pagano, and Saverio Simonelli… Read More »Paper Spotlight: Short-Selling Bans and Bank Stability

“The Effect of Taxation on Corporate Financing and Investment” by Hong Chen and Murray Frank “How are Bankers Paid?” by Benjamin Bennett, Radhakrishnan Gopalan, and Anjan V. Thakor

It is not just managers that can have a short-term orientation—the forthcoming theoretical paper “Competition for Flow and Short-Termism in Activism,” by Mike Burkart and Amil Dasgupta, shows that activist funds too can focus on the short term. In the model, activists add value by preventing wastage by the manager. To signal their type to their own investors, they take a short-term action such as boosting leverage to make a… Read More »Paper Spotlight: Competition for Flow and Short-Termism in Activism

RCFS has a submission option for papers that were previously reviewed by other journals. The goal of such review process is to help the editors arrive at a quick and informed decision on a paper based on feedback received by the authors from previous submissions. A paper is eligible for this optional review process if it was previously submitted to a few select journals; please see Prior Review Policy for… Read More »Prior Review Process