Carbon Pricing and Investment

Gustav Martinsson¹, James Brown², Per Strömberg³, Christian Thomann⁴

¹Stockholm University, Sweden; ²Texas A&M University; ³Stockholm School of Economics; ⁴Royal Institute of Technology

Discussant: Stefano Ramelli (University of St. Gallen)

Cap and Trade with Imperfect Hedging

Johan Hombert¹, Bruno Biais¹, Daniel Schmidt¹, Pierre-Olivier Weill²

¹HEC Paris; ²UCLA

Discussant: Thorsten Hens (University of Zurich)

Insurers' Carbon Underwriting Policies

Olimpia Carradori¹, Felix von Meyerinck², Zacharias Sautner³

¹Swiss Finance Institute and University of Zurich; ²Lake Lucerne Institute and University of Zurich; ³Swiss Finance Institute and University of Zurich

Discussant: Gustav Martinsson (Stockholm University)

Financial Market Effects of FOMC Communication: Evidence from a New Event-Study Database

Miguel Acosta², Andrea Ajello³, Michael Bauer¹, Francesca Loria³, Silvia Miranda-Agrippino⁴

¹Federal Reserve Bank of San Francisco; ²University of Wisconsin-Madison; ³Federal Reserve Board of Governors; ⁴Oxford University

Discussant: Xiyuan Ma (Singapore Management University)

Monetary Transmission in Equity Markets: Evidence from Financial Intermediaries

Pranav Garg¹, Matthew Famiglietti²

¹Yale University; ²Yale University

Discussant: Andreas Schrimpf (BIS)

Under Pressure? Central Bank Independence Meets Blockchain Prediction Markets

Barry Eichengreen³, Ganesh Viswanath¹, Junxuan Wang², Zijie Wang¹

¹Warwick Business School; ²HKUST Guangzhou; ³UC Berkeley

Discussant: Michael Bauer (Federal Reserve Bank of San Francisco)

Perils of Cross-Selling: How Lack of Diversification between Deposit and Loan Clients Can Engender Bank Fragility

Karolis Liaudinskas¹, Christoph Basten², Ragnar Juelsrud¹, Viral Acharya³

¹Norges bank; ²European Central Bank; ³NYU Stern

Discussant: Ahmet Degerli (Federal Reserve Board)

Banking on Bundles: Identifying Cross-Selling in Retail Banking

Fatima Zahra Filali Adib¹, Steffen Andersen², Kasper Meisner Nielsen¹, Yingjie Qi¹

¹Copenhagen Business School; ²Danmarks Nationalbank

Discussant: Gazi Kabas (Tilburg University)

Bank Specialization within Production Networks

Olivier De Jonghe^1,4, Yushi Peng², Tong Zhao^1,3

¹National Bank of Belgium; ²Tilburg University; ³KU Leuven; ⁴European Central Bank

Discussant: Ramin Baghai (Stockholm School of Economics)

The Global Credit Cycle

Nina Boyarchenko^1,2, Leonardo Elias¹

¹Federal Reserve Bank of New York, United States of America; ²CEPR

Discussant: Pasquale Della Corte (Imperial College London)

Macro Strikes Back:Term Structure of Risk Premia

Svetlana Bryzgalova¹, Jiantao Huang², Christian Julliard³

¹London Business School; ²The University of Hong Kong; ³London School of Economics

Discussant: Can Gao (University of St.Gallen and Swiss Finance Institute)

Price-to-Trend Ratios: Return Predictability and Stock-Price Decompositions

Sebastian Hillenbrand¹, Odhrain McCarthy²

¹Harvard Business School; ²NYU Stern

Discussant: Oleg Gredil (Tulane University)

The Response of Debtors to Rate Changes

Andreas Fuster¹, Virginia Gianinazzi², Andreas Hackethal³, Philip Schnorpfeil³, Michael Weber⁴

¹EPFL and Swiss Finance Institute; ²Nova SBE; ³Goethe University Frankfurt; ⁴Purdue University

Discussant: Ankit Kalda (Indiana University)

Buy, Correct, or Agree? The Drivers of Retail Investor Belief Updating and Investment within Financial Advice

Monika Burckhardt¹, Jan Müller-Dethard¹, Martin Weber^1,2

¹University of Mannheim; ²CEPR

Discussant: Jane Chen (Chinese University of Hong Kong)

PIK Now and Pay Later - How Deferred Interest Reshapes Private Credit

Paul Rintamäki, Sascha Steffen

Frankfurt School of Finance & Management

Discussant: Vesa Pursiainen (University of St.Gallen)

Infrastructure Capacity, Risk, and Firm Value: Evidence from U.S. Electricity Tightness

Marcin Kacperczyk, David Licher

Imperial College London

Discussant: Johan Hombert (HEC Paris)

Is AI Trained on Public Money? Evidence from U.S. Data Centers

Adam Feher¹, Emilia Garcia-Appendini², Roxana Mihet¹

¹University of Lausanne; ²University of St. Gallen

Discussant: Philip Valta (University of Bern)

Risk on the Run: Public Pensions, Migration Risk and Pivot to Alternatives

Rahul Singh Chauhan

University of Chicago

Discussant: Aleksandar Andonov (University of Amsterdam)

Distant Investments: Decoding Mutual Fund Skills with Large Language Models

Xiyuan Ma¹, Spiegel Matthew², Zhang Hong¹, Zhou Yijun³

¹Singapore Management University; ²Yale University; ³Florida State University

Discussant: Laurent Barras (University of Luxembourg)

How do lenders manage collateral illiquidity?

Francisco Amaral¹, Gianmarco Ruzzier²

¹University of Zurich and Swiss Finance Institute; ²Banco de España

Discussant: Pedro Gete (IE University)

Monetary Policy Exposure of Banks and Loan Covenant Strictness

Ahmet Degerli¹, Jing Wang²

¹Federal Reserve Board; ²University of Missouri

Discussant: Alberto Manconi (Bocconi University)

Tax Incentives and Venture Capital Risk-Taking

Murillo Campello¹, Guilherme Junqueira²

¹University of Florida & NBER; ²University of Florida

Discussant: Ettore Croci (Università Cattolica del Sacro Cuore)

FX Neglect in Private Equity Buyouts

Vesa Pursiainen, Wang Tang

University of St. Gallen and Swiss Finance Institute

Discussant: Daniel Urban (Erasmus University Rotterdam)

Market Fragmentation: A Cushion Against Exchange Outages?

Hans Degryse¹, Bjorn Hagstromer², Niklas Landsberg¹

¹KU Leuven; ²Stockholm Business School

Discussant: Brandon Yueyang Han (University of Maryland)

Equilibrium VIX in Inelastic Markets

Albert Menkveld

Vrije Universiteit Amsterdam

Discussant: Fabricius Somogyi (Northeastern University)

Passive Flows, Index Rebalancing, and Price Impact: Evidence from a Quasi-Experiment in Hong Kong

Hongcheng Xu

University of Oxford

Beyond Content: News Consecutiveness Impacts the Market

Min Yang

University of Zurich and Swiss Finance Institute

Beyond Credit Spreads: What Loan Fund Flows Reveal about Real Activity?

Wing Lam Cheung

University of Lausanne and Swiss Finance Institute

The Double-Edged Sword of Executive Personal Liability: Firm Value vs. Social Responsibility

Ali Ahmadi

York University

What Happens to Markets When Capital Constraints Collapse?

Simeng Li

Imperial College London

Green Patents as Collateral

Xin Yuan

Vrije Universiteit Amsterdam

The Materiality of Biodiversity Risk for SMEs in the United Kingdom

Lisa Schopohl¹, Simone Varotto¹, Guglielmo Alessandro Visentin¹, Adriana De Palma², Andy Purvis²

¹University of Reading; ²Natural History Museum London

Signaling with words or debt? The effect of voluntary disclosure on external public financing choices

Fulvia Oldrini

University of Zurich

The Impact of IPOs on Workers

Ramin Baghai¹, Rui Silva², Margarida Soares²

¹Stockholm School of Economics; ²Nova School of Business and Economics

Discussant: Harald Hau (University of Geneva)

When the Tax Break Breaks: CEO Pay and Turnover Following TCJA

Ilona Babenko², Ben Bennett³, Dragana Cvijanovic¹

¹Cornell University; ²Arizona State University; ³TCU

Discussant: Florian Peters (University of Amsterdam)

The Real Effects of Valuation Mistakes: Estimates from Mergers and Acquisitions

Derrien François¹, Hombert Johan^1,3, Ovtchinnikov Alexei¹, Philip Valta²

¹HEC Paris; ²University of Bern; ³CEPR

Discussant: Stefano Cassella (Tilburg School of Economics and Management)

Gambling with Dividends

Alexander Klos¹, Jan Müller-Dethard², Niklas Reinhardt¹, Martin Weber²

¹Kiel University; ²University of Mannheim

Discussant: Samuli Knüpfer (Aalto University)

Investing When Fewer Expect to Parent: Fertility Expectations and Financial Risk-Taking

Judith Bohnenkamp¹, Ville Rantala¹, Melina Vosse²

¹Univeristy of Miami; ²University of San Diego

Discussant: Arna Olafsson (Copenhagen Business School)

Monetary Policy Wealth Effects: Evidence from the 2015 Swiss Franc Shock

Martin Brown^1,3, Daniel Hoechle², Alejandra Perez³, Markus Schmid³

¹Study Center Gerzensee; ²University of Applied Sciences and Arts Northwestern Switzerland; ³University of St.Gallen

Discussant: Tobin Hanspal (WU Vienna University of Economics and Business)

Collateral Law and Enforcement Risk: Evidence from Native American Reservations

Leo Leitzinger

Goethe University Frankfurt

Discussant: Francesca Zucchi (ECB)

Loan Spreads and Interest Rates: The Role of The Deposit Channel and Lending Market Power

Antoine Hubert de Fraisse¹, Pierre Dubuis²

¹London School of Economics and NBER; ²Bank of England

Discussant: Rainer Haselmann (Goethe University)

Does Your Neighbor’s Debt Crowd Out Yours?

Irem Demirci², Alberto Manconi¹, Sameh Marei³

¹Bocconi University; ²Nova SBE; ³ESADE Business School

Discussant: Alberto Plazzi (Università della Svizzera Italiana)

Text Is All You Need: Asset Pricing Without Returns

Christian Breitung

Technical University of Munich

Discussant: Thomas Dangl (Vienna University of Technology)

Beyond Carr–Madan: A Projection Approach to Risk-Neutral Moment Estimation

Tjeerd de Vries

HEC Paris

Discussant: Olivier Scaillet (University of Geneva and Swiss Finance Institute)

When Complexity Outpaces Factor Models: A Unified Theory for High-Dimensional Asset-Pricing Puzzles

Carter Davis¹, Alejandro Lopez Lira²

¹Ohio State University; ²University of Florida

Discussant: Patrick Gagliardini (Università della Svizzera italiana)

Survey Expectations Meet Option Prices: New Insights from the FX Market

Pasquale Della Corte¹, Alexander Jeanneret², Can Gao³

¹Imperial College London; ²UNSW; ³University of St. Gallen

Discussant: Svetlana Bryzgalova (LBS)

Demand-Based Expected Returns

Alessandro Crescini¹, Fabio Trojani², Andrea Vedolin³

¹University of Geneva and Swiss Finance Institute; ²University of Geneva, University of Turin, Swiss Finance Institute; ³Boston University, NBER, CEPR

Discussant: Sebastian Hillenbrand (Harvard Business School)

No News is News: Volatility Speculation and Multidimensional Heterogeneous Beliefs

Can Gao¹, Brandon Yueyang Han²

¹University of St. Gallen and Swiss Finance Institute; ²University of Maryland

Discussant: Albert Menkveld (Vrije Universiteit Amsterdam)

Do Public Equities Span Private Equity Returns?

Eric Ghysels², Oleg Gredil¹, Mirco Rubin³

¹Tulane University Freeman School of Business; ²University of North Carolina; ³EDHEC Business School

Discussant: Axel Buchner (ESCP Business School)

Industrial Policy via Venture Capital

Martin Aragoneses¹, Sagar Saxena²

¹INSEAD; ²University of Pennsylvania

Discussant: Tereza Tykvová (University of St.Gallen)

Fintech to the (Worker) Rescue: Earned Wage Access, Financial Health and Employee Retention

Jose Murillo³, Boris Vallee¹, Dolly Yu²

¹INSEAD; ²Yale School of Management; ³Centrito

Discussant: Andreas Fuster (EPFL)

Financial Technology and the Inequality Gap

Roxana Mihet

University of Lausanne, Swiss Finance Institute, CEPR

Discussant: Yucheng Yang (University of Zurich)

AI in Corporate Governance: Can Machines Recover Corporate Purpose?

Boris Nikolov^1,2,3, Norman Schürhoff^1,2,4, Sam Wagner^1,2

¹University of Lausanne; ²Swiss Finance Institute; ³ECGI; ⁴CEPR

Discussant: Urs Peyer (Insead)

Corporate policies and the term structure of risk

Matthijs Bruegem¹, Roberto Marfe¹, Francesca Zucchi²

¹Collegio Carlo Alberto; ²European Central Bank

Discussant: Ilona Babenko (ASU)

Partisan Inequality in Property Tax Assessments: The Hidden Fiscal Burden on Political Minorities

Ankit Kalda¹, Vikas Soni², Qianfan Wu¹

¹Indiana University; ²University of South Florida

Discussant: Francisco Amaral (University of Zurich)

Giving up on the Home? How Downpayment Requirements Shape Consumption and Saving

Yann Cerasi¹, Gazi Kabas², Steven Ongena¹, Kasper Roszbach³

¹University of Zurich and Swiss Finance Institute; ²Tilburg University; ³Norges Bank

Discussant: Martin Brown (Study Center Gerzensee)

Disclosure and Liquidity: The Ownership Channel

Adrian Finke¹, Julia Meyer², Martin Nerlinger³, Ryan Riordan⁴, Sebastian Utz⁵

¹University of Augsburg,; ²ZHAW and University of Zurich; ³University of St. Gallen and Swiss Finance Institute; ⁴Ludwig-Maximilians-University Munich; ⁵University of Augsburg

Discussant: Francois Derrien (HEC Paris)

Green Silence: Double machine learning carbon emissions under sample selection bias

Cathy Yi-Hsuan Chen¹, Abraham Lioui², Olivier Scaillet³

¹AUniversity of Glasgow; ²EDHEC Business Schoo; ³University of Geneva and Swiss Finance Institute

Discussant: Marco Ceccarelli (Vrije Universiteit Amsterdam)