Topic: Markets

A city full of smog Research Brief / Stock Returns

Your Chinese Supplier Pollutes – It Dents Your Stock Price?

The market penalizes customers' shares more than those of the polluter

Illustration of two dice Research Brief / Investing

You Call That Fun? Why Individual Stock Investors Bother

Avanidhar Subrahmanyam studies how some investors’ gambling mentality affects share prices

Monochrome picture of children cheering Research Brief / Investing

When Younger Investors Overreact to News, Others Feel It

Inexperienced investors, lacking historical context, impact markets

Lehman Brothers building on September 15 Research Brief / Investing

When Financial Intermediaries Sneeze, These Assets Catch a Cold

Some investment vehicles are more reliant than others on the health of trading firms

Monochrome photo of people standing in line for bread Research Brief / Banking

What Makes a True Financial Crisis?

Data back to 1870 show similarities in the worst banking system shocks — focusing on loose lending before a meltdown

An illustration that has interlocking chains to represent blockchain Research Brief / Currencies

What Happens to Pesos When Dollars Go Digital?

As major central banks adopt digital currency, emerging countries will feel mixed effects

Bar and line chart Research Brief / Corporate Finance

What Drives LBO Fever? More Than Just Cheap Loans

Private equity investors weigh the total cost of capital — not just debt, but equity as well — when pursuing buyouts

Research Brief / Investing

Treasury Securities Are Actually Cheap Sometimes

They don’t trade at an absolute equal to intrinsic value, despite their image as the world’s investment bedrock

Illustration balance of risk and reward on a scale Research Brief / Stock Returns

The Strange Case of the Missing Stock Market Return

Investors in leveraged companies take on extra risk, but research indicates they see no offsetting return

A castle with a moat Research Brief / Investing

The Moat That Keeps Complex Asset Strategies Profitable

Andrea Eisfeldt finds that hedge funds with infrastructure to execute sophisticated arbitrage crowd out less-expert investors

Two people watching a Progressive Insurance ad on TV Research Brief / Advertising

The Limited Payoff in Auto Insurance Advertising

Ads aimed at brand awareness are shown to be more effective

Illustration of a tightrope walker Research Brief / Investing

The Collective Wisdom of Options Trades as Interest Rate Predictor

Skewness, measuring the range of biases, strongly suggests rate moves

Two blue cartoon characters unravel a scribble knot black thread Research Brief / Markets

Separating Auditing from Consulting: More Complex than it Seems

Market concentration, price and quality drive choice of firms

Illustration of people riding a rollercoaster Research Brief / Investing

Rethinking Buy-and-Hold Investing

The case for using rising market volatility as a signal to pare back on stocks — does higher risk always mean higher return?

Different countries currencies in a collage format Research Brief / Bond Market

Out of the 1990s Asian Crisis, a New Bond Market Rises

Local currency sovereign bonds transfer risk from issuer to buyer

International flags and Euro sign Research Brief / Markets

One European Country Defaults: How Hard-Hit Is the Euro?

A predictive model employs credit default swaps across currencies