Abstract Focusing on the art market, where auction houses act as brokers between sellers and buyers, we investigate whether more experienced achieve better performance information providers matchmakers. We find that with artist‐specific experience are likely to a sale provide precise pre‐sale estimates. These findings suggest in specific market segment plays an important role for reduce illiquidity opacity markets asymmetric information. Our analysis also shows matters above beyond other...

Supranational institutions, academics and market analysts have increasingly questioned the reliability of bank risk-weighted assets (RWAs), a cornerstone system minimum capital ratios designed by Basel Committee on Banking Supervision. In fact, significant differences can be found in banks' average risk weights, both over time across countries. Such explained several factors, some which may reflect actual content bank's assets, while others conceal distortions due to "RWA tweaking"...

Theories suggest that asset encumbrance, the ring-fencing of certain assets for protected debtholders, can affect banks' risk-taking and lead to funding instability. We test these hypotheses using a unique, hand-collected dataset on outstanding covered bonds issued by sample listed European banks. Our results effect encumbrance risk depends proportion debtholders exerting market discipline bank's liquidity buffers. deal with concerns regarding omitted variables reverse causality several...

Population-wide increase in life expectancy is a source of aggregate risk. Longevity-linked securities are natural instrument to reallocate that This paper extends the standard Campbell–Viceira (2005) strategic asset allocation model by including longevity-linked investment possibility. Model estimation, based on prices for standardized annuities publicly offered U.S. insurance companies, shows shocks survival probabilities predictors long-term returns securities, and reveals an unexpected...

We evaluate the impact of government ownership on issuer and individual ratings a sample 224 large European banks over 1999-2004 period. Individual differ from traditional ones in that they focus banks' economic financial conditions do not take into account any external support owners, local or national governments, monetary authorities other official institutions. Two main results emerge our analysis. First, after controlling for accounting variables, government-owned have better average...

We use cross country data on a sample of 210 large Western European banks during the ten year period from 2000 to 2009 evaluate impact government ownership bank risk and lending activity across economic political cycles. Three main results emerge our analysis. First, government-owned have lower default but higher insolvency than private ones, indicating that they benefit protection mechanism in form explicit and/or implicit guarantees. Second, owned behavior cycle is not significantly...

We document that reliance on internal ratings-based (IRB) models to compute credit risk and capital requirements reduces bank opacity. Greater IRB is associated with lower absolute forecast error reduced disagreement among analysts regarding expected earnings per share. These results are stronger for banks apply ratings the most opaque loans adopt advanced version of models, which entail a more granular assessment greater disclosure parameters. The stem from higher informativeness...

Our hand-collected sample of 298 U.S. SPACs reveals that the modal SPAC CEO is a 50-year-old male MBA graduate with substantial financial expertise. In accordance signaling theory, greater reputation gained through prior experience in public companies linked to larger SPACs. As IPO process continues, CEO’s expertise becomes important raising external capital.

We investigate how the link between bond spreads and credit ratings is affected by cycle. Using a simple model of assessment process, we show that when debt market more opaque, information content becomes poorer, creating an incentive for investors to increase amount spent on private information. test this hypothesis empirically. Results that, opaqueness (proxied spread Aaa Baa-rated bonds) increases, explanatory power other control variables as increasingly price in non-public

As the size of art market increases and a growing number investors are attracted by high returns, amount quality information available to participants becomes increasingly relevant, especially for less experienced investors. One most relevant sources in is price estimate provided auction houses, that auctioneers believe piece might bring at auction. Auction houses regarded as providing additional valuable participants. Thus pre-sale estimates could be useful reference points valuation...

Focusing on the art market, where auction houses act as brokers between sellers and buyers, we investigate whether more experienced achieve better performance information providers. We use a unique data set of auctions Italian paintings in various around world, measure experience number times an auctioneer has auctioned artworks certain artist given location. find that (i) are likely to sell (ii) provide precise pre-sale estimates. These findings suggest plays important role for reduce...

Using data on more than 5,000 mutual funds domiciled in four European countries 2006, we investigate whether distribution costs embedded into the expense ratio can be held responsible for differences of ratios different countries. We confirm existence relevant country effects pricing fund management services. Comparing load and no-load using survey fee retrocession to channel, provide evidence that these are heavily influenced by cost ratio.

This paper proposes a framework to evaluate the impact of longevity-linked securities on risk-return trade-off for traditional portfolios. Generalized unexpected raise in life expectancy is source aggregate risk insurance sector balance sheets. Longevity-linked are natural instrument reallocate these risks by making them tradable financial market. extends strategic asset allocation model Campbell and Viceira (2005) include investment addition equity fixed income describe resulting term...

One of the most relevant information sources in art market is price estimate provided by auction houses, Art experts are regarded as providing additional valuable to participants: pre-sale estimates could be useful reference points for any valuation process and should drive operators’ investment divestment decisions. However, each unique artwork affected inconstant intangible factors, usually expressed a range within which forecast final will fall. The informational content such can examined...

We analyze the characteristics of banks that issue green bonds to understand: (i) why some are more likely than others resort these funding instruments, and (ii) if issuance translates into an improvement in a bank’s environmental footprint. find large had already publicly expressed their support for transition bonds. Conditional on being bond issuer, smaller tend persistent manner larger amounts, while occasional basis amounts. This heterogeneity is also reflected our findings only...