Tag Archives: Finance

Maximizing the benefits from R&D subsidies: How some enterprise support policies can discourage high-growing entrepreneurship

Many governments offer support for entrepreneurs in a bid to boost entrepreneurship and startup success. However, as Annamaria Conti shows, both policymakers and entrepreneurs need to thoroughly assess the impact of that support to ensure that it is having the desired effect.

5 min read Continue reading Maximizing the benefits from R&D subsidies: How some enterprise support policies can discourage high-growing entrepreneurship

The effect of screening for environmental, social and governance performance on passive and smart beta investing strategies

Using environmental, social, and governance (ESG) scores of firms belonging to the MSCI World universe, we measure the impact of score-based exclusion on both passive investment and smart beta strategies. We find that exclusion leads to improved scores of otherwise standard portfolios without deterioration of their risk-adjusted performance. Smart beta strategies exhibit a similar pattern, often in a more pronounced way. Moreover, our results demonstrate that exclusion also implies regional and sectoral tilts as well as (possibly undesirable) risk exposures of the portfolios.

5 min read Continue reading The effect of screening for environmental, social and governance performance on passive and smart beta investing strategies

Keeping the lights on: are electricity firms the next “too big to fail” crisis?

In the aftermath of the 2008 financial crisis it became clear that regulators had allowed many financial services firms to become “too big to fail”. Yet this system-critical firm problem is not confined to financial services. In their paper “Can electricity companies be too big to fail?” Ann van Ackere, Erik R. Larsen and Sebastian Osorio explain how a similar challenge faces the electricity sector, and offer some suggestions to help regulators prevent the lights from going out.

5 min read Continue reading Keeping the lights on: are electricity firms the next “too big to fail” crisis?

Tales of the unexpected: understanding risk at the extremes

Business as usual is the normal state affairs, and the world that managers and policymakers operate within most of the time. Occasionally, however, that world is shaken by unforeseen extreme events, from stock market crashes to earthquakes.

5 min read Continue reading Tales of the unexpected: understanding risk at the extremes

Contagion, capital and crashes: a new measure of systemic risk in Europe

How secure are Europe’s financial institutions? What are the chances of another crisis? Eric Jondeau and Michael Rockinger create a model for assessing the ability of European financial institutions, industry sectors, and countries, to withstand market shocks.

4 min read Continue reading Contagion, capital and crashes: a new measure of systemic risk in Europe