22 June 2018
The decline in investment in the aftermath of the European financial crisis of 2008-09 can be linked to higher leverage, increased debt service, and firms’ relationships with weak banks,
Sebnem Kalemli-Ozcan,
Luc Laeven, and
David Moreno find.
21 June 2018
After exogenous reductions of analyst coverage due to closures of brokerage firms, hedge funds scale up information acquisition, trade more aggressively, and earn higher abnormal returns on the affected stocks, mitigating impairment of market efficiency caused by coverage reductions,
Yong Chen,
Bryan Kelly, and
Wei Wu find.
20 June 2018
The combination of weak financial development and weak rule of law can sharply reduce output per capita in developing countries, in some cases by as much as 50 percent, according to a study by
Ashantha Ranasinghe and
Diego Restuccia.