Climate finance
by Dr Mehrshad Motahari, Research Associate, Cambridge Centre for Finance and Cambridge Endowment for Research in Finance The risk of climate change and its potentially drastic consequences has reshaped many industries in recent years. The financial industry has been no…
Firms’ capital structure dynamics, market competition, and industry dynamics
by Shiqi Chen, Research Associate, Cambridge Centre for Finance and Cambridge Endowment for Research in Finance Debt-equity conflict is undoubtfully one of the core paradigms of corporate finance research. It is well-known that, once debt is in place, the misalignment…
Do firm locations affect stock prices?
by Dr Mehrshad Motahari, Research Associate, Cambridge Centre for Finance and Cambridge Endowment for Research in Finance A large body of literature documents how firms' geographical locations can affect their stock returns. For example, Pirinsky and Wang (2006) show that…
The rise of the special purpose acquisition company
by Dr Sunwoo Hwang, Research Associate, Cambridge Centre for Finance and Cambridge Endowment for Research in Finance 2020 has been the year of special purpose acquisition companies or SPACs. A SPAC is a blank check shell company designed to take…
Welfare implications of bank valuation disagreement
by Dr Hormoz Ramian, Research Associate, Cambridge Centre for Finance and Cambridge Endowment for Research in Finance Regulatory interventions have always been ensued by heated debates. In the years after the financial crisis reached its darkest moment, academic literature and…
Machine learning challenges in finance
by Dr Mehrshad Motahari, Research Associate, Cambridge Centre for Finance and Cambridge Endowment for Research in Finance Dr Mehrshad Motahari Machine learning (ML) is the most important branch of artificial intelligence (AI), providing tools with wide-ranging applications in finance. My…
Contingent employment and innovation
by Dr Sunwoo Hwang, Research Associate, Cambridge Centre for Finance and Cambridge Endowment for Research in Finance There has been a rapid increase in contingent employment worldwide. As of 2015, it accounts for 15.8 per cent of the US labor…
Negative interest rate: the interaction between monetary and financial regulatory policies
by Hormoz Ramian, Research Assistant, Cambridge Centre for Finance and Cambridge Endowment for Research in Finance The negative interest rate has been among the frontier policies to counter the recent economic downturns. The 2020 pandemic resurfaced the policy's role that…
Managerial commitment and long-term firm value
by Dr Adelphe Ekponon and Dr Scott Guernsey, Research Associates, Cambridge Centre for Finance and Cambridge Endowment for Research in Finance Dr Adelphe Ekponon Dr Scott B. Guernsey Motivated by preliminary empirical evidence showing that firms with more committed managers…
Can robots beat the market?
by Dr Mehrshad Motahari, Research Associate, Cambridge Centre for Finance and Cambridge Endowment for Research in Finance Dr Mehrshad Motahari The growing trend of replacing active investment managers with computer algorithms (The Economist, 2019) has led to a surge in…
