Crisis

Did Corporate Governance 'Fail' During the 2008 Stock Market Meltdown? The Case of the S&P 500

In 2008, share prices on U.S. stock markets fell further than they had during any one year since the 1930s. Does this mean corporate governance...

The Flight Home Effect: Evidence from the Syndicated Loan Market During Financial Crises

In the context of the global market for syndicated bank loans, we provide evidence that the collapse of international markets during financial crises...

Economic Crisis and Share Price Unpredictability: Reasons and Implications

During the recent financial crisis, there was a dramatic spike, across all industries, in the volatility of individual firm share prices after...

International Evidence on Firm Level Decisions in Response to the Crisis: Shareholders vs. Other Stakeholders

The relationship between changes in GDP and unemployment during the 2008 financial crisis differed significantly from previous experiences and...

Bail-outs and Bail-ins are better than Bankruptcy: A Comparative Assessment of Public Policy Responses to COVID-19 Distress

COVID-19 has severely disrupted the conduct of business around the globe. In jurisdictions that impose one or more ‘lockdowns’, multiple sectors...

Credit Default Swaps and the Credit Crisis

Evolving Directors’ Duties in the Common Law World

Legal scholars have long discussed the gap, or “acoustic separation”, between stringent standards of conduct (“conduct rules”) and more...

Understanding Bank Payouts During the Crisis of 2007-2009

We study U.S. banks’ payout policy in 2007-2008. We benchmark these payouts against payouts before the crisis, measure stock price reactions to...

The Use of Credit Ratings in the Delegated Management of Fixed Income Assets

Investment mandates of fixed income funds constrain managers’ portfolio decisions, often employing credit ratings to classify asset risk. We...

Corporate Financial Frictions and Employee Mental Health

This paper argues that corporate financial frictions can have an adverse effect on employee mental health, an important determinant of employee...

Investors’ Horizons and the Amplification of Market Shocks

During episodes of market turmoil, institutional investors with short trading horizons are inclined or forced to sell their holdings to a larger extent...

Making Bank Resolution Credible

Financial difficulties at large financial institutions present governments and regulators with an unenviable dilemma. On the one hand, they are...