Forthcoming Paper
“Double-Adjusted Mutual Fund Performance” by Jeffrey Busse, Lei Jiang, and Yuehua Tang
Code Sharing Policy
The Review of Corporate Financial Studies (RCFS) is enacting a Code Sharing Policy for papers accepted for publication, which will be effective on October 1, 2020. The policy is available here. This policy reflects the commitment of the RCFS to the highest standards of quality, as we believe that the policy will help improve the reproducibility and replicability of published research and by this will support the credibility and impact… Read More »Code Sharing Policy
Paper Spotlight: How Did COVID-19 Affect Firms’ Access to Public Capital Markets?
Sharp recessions and prolonged market stress periods are accompanied by drying up of equity and corporate bond issues, a big challenge for firms because the need for capital is very high during such periods. Disentangling supply-driven from demand-driven reasons is very problematic. In this paper, Michael Halling, Jin Yu, and Josef Zechner use the ongoing COVID-19 pandemic, a truly exogenous demand shock,… Read More »Paper Spotlight: How Did COVID-19 Affect Firms’ Access to Public Capital Markets?
Paper Spotlight: Historical Returns of the Market Portfolio
The market portfolio plays a special role in asset pricing. Although many finance researchers use a U.S. equity portfolio to proxy for the market portfolio, theory usually dictates a broad, world portfolio that includes global equities, global real estate, commodities, and fixed income. In a new Review of Asset Pricing Studies paper, “Historical Returns of the Market Portfolio,” Ronald Doeswijk, Trevin Lam, and Laurens… Read More »Paper Spotlight: Historical Returns of the Market Portfolio
Paper Spotlight: Do Proxies for Informed Trading Measure Informed Trading? Evidence from Illegal Insider Trades
Reliable proxies for informed trading are required to test many theories in finance. Theory suggests several possible proxies; however, validating these empirically has been challenging because trades by informed investors cannot (in general) be observed. Kenneth Ahern’s new paper, “Do Proxies for Informed Trading Measure Informed Trading? Evidence from Illegal Insider Trades,” addresses this challenge by using hand-collected data on illegal insider trades. He shows that the effective bid-ask spread… Read More »Paper Spotlight: Do Proxies for Informed Trading Measure Informed Trading? Evidence from Illegal Insider Trades
Paper Spotlight: Feverish Stock Price Reactions to COVID-19
The market reactions to the 2019 novel Coronavirus event, a truly exogenous shock, can help our understanding of how real economic shocks and financial policies drive firm value. In “Feverish Stock Price Reactions to COVID-19,” Stefano Ramelli and Alexander F. Wagner find strong causal evidence for the role of international trade and global value chains for corporate value. Initially, internationally-oriented firms, especially those more exposed to China, underperformed. As the… Read More »Paper Spotlight: Feverish Stock Price Reactions to COVID-19
Editor’s Choice 33(7)
The Editor’s Choice article for 33(7) is “On the Rise of FinTechs: Credit Scoring Using Digital Footprints” by Tobias Berg, Valentin Burg, Ana Gombović, and Manju Puri. You can read the paper free online.
Forthcoming Paper
“Feverish Stock Price Reactions to COVID-19” by Stefano Ramelli and Alexander F. Wagner
Call for Papers: ECB-RFS Macro-Finance Conference
The Call for Papers for the 2021 ECB-RFS Macro-Finance Conference is now available. The conference, which features a dual submission option with RFS, will take place March 22-23 at the ECB in Frankfurt. The RFS sponsoring editors are Itay Goldstein and Ralph Koijen. The submission deadline is November 15, 2020.
Statement of the SFS Council
The Society of Financial Studies Council believes that we cannot remain silent about the continued acts of racism that exist in our society. We acknowledge the numerous voices of the peaceful protesters and are determined to not let this moment pass without contributing to a changed society. In particular, the future of a robust financial system lies on the path of justice and equity. We are actively investigating ways to… Read More »Statement of the SFS Council