We propose a direct measure of abnormal institutional investor attention (AIA) using news searching and news reading activity for specific stocks on Bloomberg terminals. AIA is highly correlated with ...institutional trading measures and related to, but different from, other investor attention proxies. Contrasting AIA with retail attention measured by Google search activity, we find that institutional attention responds more quickly to major news events, leads retail attention, and facilitates permanent price adjustment. The well-documented price drifts following both earnings announcements and analyst recommendation changes are driven by announcements to which institutional investors fail to pay sufficient attention.
A Conditioned Exchange Torisson, Fredrik
Footprint : Delft School of Design journal,
12/2019, Volume:
13, Issue:
25
Journal Article
Peer reviewed
Open access
The emergence of financial institutions such as the exchanges or bourses of northern Europe in the sixteenth and the seventeenth centuries made possible the emergence of speculation in financial ...instruments. Speculation evolved into a game with its own logic, and the implied ethos of the speculator prioritised abstract notions and self-interest. This article investigates the relation between this ethos of speculation and architecture in this timeframe. During this period, the architecture of the exchanges transformed; what was a square with an inside at the outset gradually became an enclosed institution with representative façades toward the end of the period. The transition of the physical environment of exchange and the increasingly complex financial instruments interact, and this interaction is traced through a sequence of exchange-structures inspired by one another. The question explored is: what is the relationship between the emergence of an ethos of speculation and the architectural space of the exchange? This relationship can be discussed in terms of a different kind of conditioning that has less to do with industrialisation, but which could, in extension, form a starting point for discussions on architecture's role in the formation and conditioning of homo œconomicus.
On the Rise of FinTechs Berg, Tobias; Burg, Valentin; Gombović, Ana ...
The Review of financial studies,
07/2020, Volume:
33, Issue:
7
Journal Article
Peer reviewed
Open access
We analyze the information content of a digital footprint—that is, information that users leave online simply by accessing or registering on a Web site—for predicting consumer default. We show that ...even simple, easily accessible variables from a digital footprint match the information content of credit bureau scores. A digital footprint complements rather than substitutes for credit bureau information and affects access to credit and reduces default rates. We discuss the implications for financial intermediaries’ business models, access to credit for the unbanked, and the behavior of consumers, firms, and regulators in the digital sphere.
According to our survey about climate risk perceptions, institutional investors believe climate risks have financial implications for their portfolio firms and that these risks, particularly ...regulatory risks, already have begun to materialize. Many of the investors, especially the long-term, larger, and ESG-oriented ones, consider risk management and engagement, rather than divestment, to be the better approach for addressing climate risks. Although surveyed investors believe that some equity valuations do not fully reflect climate risks, their perceived overvaluations are not large.
Examining a shock to the salience of the sustainability of the U.S. mutual fund market, we present causal evidence that investors marketwide value sustainability: being categorized as low ...sustainability resulted in net outflows of more than $12 billion while being categorized as high sustainability led to net inflows of more than $24 billion. Experimental evidence suggests that sustainability is viewed as positively predicting future performance, but we do not find evidence that high-sustainability funds outperform low-sustainability funds. The evidence is consistent with positive affect influencing expectations of sustainable fund performance and nonpecuniary motives influencing investment decisions.
This work investigates the problem of negotiations between producers and reverse-logistics (RL) suppliers for cooperative agreements under government intervention. Utilizing the asymmetrical Nash ...bargaining game with uncertainties, this work seeks equilibrium negotiation solutions to player agendas. Analytical results indicate that financial intervention by a government generates a significant effect on the relative bargaining power of green supply chain members in negotiations. Over intervention by a government may result in adverse effects on chain members’ profits and social welfare. Furthermore, a bargaining framework underlying the duopoly–oligopoly context may contribute to a negotiation outcome most profitable for green supply chain members.
This paper documents "runs" on asset-backed commercial paper (ABCP) programs in 2007. We find that one-third of programs experienced a run within weeks of the onset of the ABCP crisis and that runs, ...as well as yields and maturities for new issues, were related to program-level and macro-financial risks. These findings are consistent with the asymmetric information framework used to explain banking panics, have implications for commercial paper investors' degree of risk intolerance, and inform empirical predictions of recent papers on dynamic coordination failures.
This paper assesses whether shareholders drive the environmental and social (E&S) performance of firms worldwide. Across 41 countries, institutional ownership is positively associated with E&S ...performance with additional tests suggesting this relation is causal. Institutions are motivated by both financial and social returns. Investors increase firms’ E&S performance following shocks that reveal financial benefits to E&S improvements. In cross section, investors increase firms’ E&S performance when they come from countries with a strong community belief in the importance of E&S issues, but not otherwise. As such, these institutional investors transplant their social norms regarding E&S issues around the world.
PDF
