Sukūk Development and Income Inequality (2023)
Journal Article
Jatmiko, W., Ebrahim, M., & Smaoui, H. (2023). Sukūk Development and Income Inequality. Journal of International Financial Markets, Institutions and Money, Article 101852. https://doi.org/10.1016/j.intfin.2023.101852

This paper investigates the link between sukūk development and income inequality by scrutinizing twenty-two countries’ data from 1995 to 2019. We employ the two-stage Fractional Regression Model to illustrate that sukūk issuance is associated with in... Read More about Sukūk Development and Income Inequality.

Uncertainty and Bubbles in Cryptocurrencies: Evidence from Newly Developed Uncertainty Indices (2023)
Journal Article
Chowdhury, M. S. R., & Damianov, D. S. (2023). Uncertainty and Bubbles in Cryptocurrencies: Evidence from Newly Developed Uncertainty Indices. International Review of Financial Analysis, Article 102949. https://doi.org/10.1016/j.irfa.2023.102949

In this paper, we examine whether newly developed crypto price and policy uncertainty indices based on news coverage (Lucey et al., 2022) are associated with the emergence of bubbles in cryptocurrencies. Using probit regressions, we show that these i... Read More about Uncertainty and Bubbles in Cryptocurrencies: Evidence from Newly Developed Uncertainty Indices.

Bond Issuance and the Funding Choices of European Banks: The Consequences of Public Debt (2023)
Journal Article
Rancan, M., Cariboni, J., Keasey, K., & Vallascas, F. (2023). Bond Issuance and the Funding Choices of European Banks: The Consequences of Public Debt. Journal of Empirical Finance, 74, Article 101417. https://doi.org/10.1016/j.jempfin.2023.101417

European banks raise less funds in the bond market when there is a larger public debt in their national economies and this is reflected in lower leverage. We exploit numerous sources of heterogeneity in our data to demonstrate this result is driven b... Read More about Bond Issuance and the Funding Choices of European Banks: The Consequences of Public Debt.

Arbitrage problems with reflected geometric Brownian motion (2023)
Journal Article
Buckner, D., Dowd, K., & Hulley, H. (in press). Arbitrage problems with reflected geometric Brownian motion. Finance and Stochastics,

Contrary to the claims made by several authors, a financial market model in which the price of a risky security follows a reflected geometric Brownian motion is not arbitrage-free. In fact, such models violate even the weakest no-arbitrage condition... Read More about Arbitrage problems with reflected geometric Brownian motion.

Extremal quantiles and stock price crashes (2023)
Journal Article
Andreou, P., Anyfantaki, S., Maasoumi, E., & Sala, C. (2023). Extremal quantiles and stock price crashes. Econometric Reviews, https://doi.org/10.1080/07474938.2023.2241223

We employ extreme value theory to identify stock price crashes, featuring low-probability events that produce large, idiosyncratic negative outliers in the conditional distribution. Traditional methods employ approximations under Gaussian assumptions... Read More about Extremal quantiles and stock price crashes.

Precautionary motive or private benefit motive for holding cash: Evidence from CEO ownership (2023)
Journal Article
Yin, C., Sun, W., & Zeng, Y. (2023). Precautionary motive or private benefit motive for holding cash: Evidence from CEO ownership. International Review of Financial Analysis, 90(November 2023), Article 102820. https://doi.org/10.1016/j.irfa.2023.102820

This study examines how CEO ownership affects the motivation of firms to hold cash. We document a monotonic and positive relationship between CEO ownership and cash holdings. The effect is more pronounced for firms with higher firm-specific risk and... Read More about Precautionary motive or private benefit motive for holding cash: Evidence from CEO ownership.

Flight to Lottery Ahead of FOMC Announcements: Institutional Investors or Retail Investors? (2023)
Journal Article
Guo, H., Hung, C. D., Kontonikas, A., & Zeng, Y. (in press). Flight to Lottery Ahead of FOMC Announcements: Institutional Investors or Retail Investors?. British Journal of Management, https://doi.org/10.1111/1467-8551.12755

This paper studies the pre-Federal Open Market Committee (FOMC) announcement drift at the stock level. We hypothesize that investors have a higher propensity to speculate before the monetary policy announcements by the FOMC, due to the resolution of... Read More about Flight to Lottery Ahead of FOMC Announcements: Institutional Investors or Retail Investors?.

Earnings Expectations and the Quality of Financial Services (2023)
Journal Article
Shi, X., Nguyen, . D. D. (., & Wang, M. (2023). Earnings Expectations and the Quality of Financial Services. Journal of Accounting and Public Policy, 42(4), Article 107115. https://doi.org/10.1016/j.jaccpubpol.2023.107115

Using complaint data filed by consumers with the Consumer Financial Protection Bureau against financial institutions, we show that banks receive, on average, 13.3% more customer complaints in the quarter immediately after they narrowly beat analy... Read More about Earnings Expectations and the Quality of Financial Services.

Proximity to Bank Headquarters and Branch Efficiency: Evidence from Mortgage Lending (2023)
Journal Article
Lim, I., Nguyen, L. D. D., Nguyen, L., & Wilson, J. O. (in press). Proximity to Bank Headquarters and Branch Efficiency: Evidence from Mortgage Lending. Journal of Money, Credit and Banking,

We use the staggered introduction of new flight routes to identify reductions in travel time between banks’ headquarters and branches to examine their effects on branch outputs and efficiency. Reductions in headquarters-branch travel time increas... Read More about Proximity to Bank Headquarters and Branch Efficiency: Evidence from Mortgage Lending.

Implicit guarantees and the rise of shadow banking: The case of trust products (2023)
Journal Article
Allen, F., Gu, X., Li, C. W., Qian, J. "., & Qian, Y. (2023). Implicit guarantees and the rise of shadow banking: The case of trust products. Journal of Financial Economics, 149(2), 115-141. https://doi.org/10.1016/j.jfineco.2023.04.012

Implicit guarantees provided by financial intermediaries are a key component of China's shadow banking sector. We show theoretically that project screening by intermediaries, accompanied by their implicit guarantees to investors, can be the second-be... Read More about Implicit guarantees and the rise of shadow banking: The case of trust products.

Gender, workplace preferences and firm performance: Looking through the glass door (2023)
Journal Article
Chen, J., Jing, C., Keasey, K., Lim, I., & Xu, B. (2023). Gender, workplace preferences and firm performance: Looking through the glass door. European Financial Management, https://doi.org/10.1111/eufm.12421

Exploiting two quasi-natural experiments, we find that firms increase emissions of toxic pollution following decreases in analyst coverage. The effects are stronger for firms with low initial analyst coverage, poor corporate governance, and firms sub... Read More about Gender, workplace preferences and firm performance: Looking through the glass door.

Analyst Coverage and Corporate Environmental Policies (2023)
Journal Article
Jing, C., Keasey, K., Lim, I., & Xu, B. (in press). Analyst Coverage and Corporate Environmental Policies. Journal of Financial and Quantitative Analysis, https://doi.org/10.1017/S0022109023000340

Exploiting two quasi-natural experiments, we find that firms increase emissions of toxic pollution following decreases in analyst coverage. The effects are stronger for firms with low initial analyst coverage, poor corporate governance, and firms sub... Read More about Analyst Coverage and Corporate Environmental Policies.

Cross-country Disparities in Skill Premium and Skill Acquisition (2022)
Journal Article
Banerjee, A., Basu, P., & Keller, E. (2023). Cross-country Disparities in Skill Premium and Skill Acquisition. Economic Inquiry, 61(1), 179-198. https://doi.org/10.1111/ecin.13107

Skilled individuals are rewarded more in poor than in rich countries. Why aren’t more individuals acquiring skills in poor countries? We document that the unemployment rate of the skilled net of that of the unskilled decreases with a country’s level... Read More about Cross-country Disparities in Skill Premium and Skill Acquisition.

Political ties and raising capital in global markets: Evidence from Yankee bonds (2022)
Journal Article
Ambrocio, G., Gu, X., & Hasan, I. (2022). Political ties and raising capital in global markets: Evidence from Yankee bonds. Journal of Corporate Finance, 74, Article 102223. https://doi.org/10.1016/j.jcorpfin.2022.102223

This paper examines whether state-to-state political ties help firms obtain better terms when raising funds in global capital markets. Focusing on the Yankee bonds market, we find that issuances by firms from countries with close political ties with... Read More about Political ties and raising capital in global markets: Evidence from Yankee bonds.

Fintech, Cryptocurrencies, and CBDC: Financial Structural Transformation in China (2022)
Journal Article
Allen, F., Gu, X., & Jagtiani, J. (2022). Fintech, Cryptocurrencies, and CBDC: Financial Structural Transformation in China. Journal of International Money and Finance, 124, Article 102625. https://doi.org/10.1016/j.jimonfin.2022.102625

Fintech and decentralized finance have penetrated all areas of the financial system and have improved financial inclusion in the last decade. In this paper, we review the recent literature on fintech, cryptocurrencies, stablecoins, and central bank d... Read More about Fintech, Cryptocurrencies, and CBDC: Financial Structural Transformation in China.

Institutions and Corporate Reputation: Evidence from Public Debt Markets (2022)
Journal Article
Gu, X., Hasan, I., & Lu, H. (2022). Institutions and Corporate Reputation: Evidence from Public Debt Markets. Journal of Business Ethics, https://doi.org/10.1007/s10551-021-05020-x

Using data from China’s public debt markets, we study the value of corporate reputation and how it interacts with legal and cultural forces to assure accountability. Exploring lawsuits that change corporate reputation, we find that firms involved in... Read More about Institutions and Corporate Reputation: Evidence from Public Debt Markets.

Forward Guidance and Corporate Lending (2021)
Journal Article
Delis, M., Hong, S., Paltalidis, N., & Philip, D. (2022). Forward Guidance and Corporate Lending. Review of Finance, 26(4), 899-935. https://doi.org/10.1093/rof/rfab027

We suggest that forward guidance, via publicly committing the central bank to future actions and creating associated expectations, fundamentally affects bank lending decisions independently of other forms of monetary policy. To test this hypothesis,... Read More about Forward Guidance and Corporate Lending.

When It Rains It Drains: Psychological Distress and Household Net Worth (2021)
Journal Article
Balloch, A., Engels, C., & Philip, D. (2022). When It Rains It Drains: Psychological Distress and Household Net Worth. Journal of Banking and Finance, 143, https://doi.org/10.1016/j.jbankfin.2022.106620

This paper establishes a sizeable negative effect of poor mental health on individuals’ net worth. In a representative panel of U.S. households, we find that a one standard deviation (or four unit) increase in Kessler’s K6 psychological distress leve... Read More about When It Rains It Drains: Psychological Distress and Household Net Worth.

A Survey of Fintech Research and Policy Discussion (2021)
Journal Article
Allen, F., Gu, X., & Jagtiani, J. (2021). A Survey of Fintech Research and Policy Discussion. Review of corporate finance, 1(3-4), 259-339. https://doi.org/10.1561/114.00000007

The intersection of finance and technology, known as fintech, has resulted in the dramatic growth of innovations and has changed the entire financial landscape. While fintech has a critical role to play in democratizing credit access to the unbanked... Read More about A Survey of Fintech Research and Policy Discussion.

Dispersion in options investors' versus analysts' expectations: Predictive inference for stock returns (2021)
Journal Article
Andreou, P., Kagkadis, A., Maio, P., & Philip, D. (2021). Dispersion in options investors' versus analysts' expectations: Predictive inference for stock returns. Critical finance review, 10(1), 65-81. https://doi.org/10.1561/104.00000091

We create a market-wide measure of dispersion in options investors' expectations by aggregating across all stocks the dispersion in trading volume across moneynesses (DISP). DISP exhibits strong negative predictive power for future market returns and... Read More about Dispersion in options investors' versus analysts' expectations: Predictive inference for stock returns.