FRANKFURT SCHOOL

BLOG
RESEARCH - FINANCE

RESEARCH

5 May, 2020
Have you felt the sustainable finance-related regulatory attention already?

Menglu Zhuang

Together with Karsten Löffler and Sebastian Rink, we have written a chapter in the new book on sustainable finance Nachhaltige Finanzwirtschaft. In our chapter, we provide a historical look-back on the fast regulatory developments in Europe, inter alia Germany and make several suggestions on how financial institutions could prepare themselves for the upcoming challenges and opportunities. If you have already felt the regulatory attention in your job, it is time to get an overview on the current situation.
1 October, 2019
Institutional Investors’ Views and Preferences on Climate Risk Disclosure
Zacharias Sautner
Financial market efficiency relies on timely and accurate information regarding firms’ risk exposures. An increasingly important risk exposure relates to climate change. Climate risks can originate from more severe and more frequent natural disasters, government regulation to combat a rise in temperature, or climate-related innovations that disrupt existing business models.
Basically a financial market is a machine that takes money from investors and distributes it to entre­preneurs that need money for their businesses. Those businesses promise a return to the investors. Depending on the business an in­vestment comes with a certain risk.
12 March, 2019
What is sustainable finance?
Ulf Moslener
9 August, 2018
The Tragedy of the Horizon: A Mandate for Financial Sector Regulations?
Oliver Schenker
Investment to the tune of around $6.3 trillion per annum in core infrastructure, energy efficiency and energy production is required globally over the next 15 years. Making these infrastructure investments consistent with the goal to limit global temperature increase to 2°C as stated in the Paris Agreement requires an additional $600 billion per year and a major change in the composition of investment towards zero or low-carbon assets, climate resilient sectors, and adaptation infrastructure.
The Belgium lender Dexia was a quintessential example with respect to risk-taking behavior of large European banks during the 2007-2009 global financial and subsequent European sovereign debt crisis. Towards the end of 2010, Dexia had built a huge portfolio of risky sovereign bonds (issued by Greece, Ireland, Italy, Portugal and Spain (GIIPS)) after yields have widened substantially betting on a compression of sovereign bond yields to pre-crisis levels.
26 July, 2018
This time’s the same: Eurozone sovereign and financial sector credit risk
Prof. Dr. Sascha Steffen
25 March, 2020
How the Corona crisis will affect blockchain ecosystems

Prof. Dr. Philipp Sandner

The Corona virus crisis is also affecting the crypto market. In this short article, I seek to present some thoughts about the effect of the Corona virus on the blockchain sector — including startups, corporates and Bitcoin.
19 February, 2020
Banken 2020: Zerrissen zwischen Tradition und Hightech

Jürgen Moormann

Aktuell befinden sich die europäischen – und insbesondere die deutschen – Banken in einem für die Branche einzigartigen Umbruch. Es ist die Kombination aus mehreren Trends, die das Bankgeschäft so radikal verändern.
15 September, 2017
Why Does an Equal-Weighted Portfolio Outperform Value- and Price-Weighted Portfolios?
Grigory Vilkov
Simplicity is everything! According to Ockham's razor or "law of parsimony," among competing hypotheses, the one with the fewest assumptions should be selected. What can be simpler than an equal-weighted portfolio?
Die Regierung (ersatzweise die EZB, „die Banken“ oder schwarze Mächte) will das Bargeld abschaffen! Dieser Panikruf schallt durch Talk-Shows und Gazetten. Demnach gibt es demnächst keine
20 September, 2016
Abschaffung des Bargelds – eine Geisterdebatte
Jürgen Moormann
27 July, 2016
Do Private-Equity Firms Create Value in Cross-Border M&A?
Zacharias Sautner
Cross-border mergers and acquisitions (M&A) have become increasingly important, comprising, in terms of deal value, about 40% of all M&A. Yet, cross-border deals are exposed to severe problems
Contracts between firms are at the heart of economics. In a new paper, me and my co-author Rajkamal Iyer from MIT Sloan School of Management study how contracts between buyers and sellers are
21 June, 2016
How do Contracts between Firms address Opportunistic Behavior?
Zacharias Sautner
5 November, 2019
Sentimental Recovery

Grigory Vilkov

Financial markets are constantly evolving, providing investors with more efficient ways to trade, with instruments spanning more states of nature, making markets more complete. For example, in the last decade, instruments giving direct access to volatility, such as VIX futures, have shown an enormous gain in popularity.
22 January, 2019
Implications of Financial Innovation for Capital Markets and Household Welfare

Grigory Vilkov

Financial markets are being transformed by the rapid pace of financial innovation, which makes available new asset classes (The new asset classes into which households can invest include hedge funds, private equity, emerging-market equity and debt, mezzanine and distressed debt, real estate, infrastructure, commodities, and cryptocurrencies) and financial products with increasingly complex payoff structures (for an example of a structured product designed to increase household participation in the stock market by offering downside protection, see Calvet, Celerier, Sodini, and Vallee (2017).
25 February, 2016
Do top executives behave myopically?
Zacharias Sautner
When surveyed, the vast majority of top executives attest that they would cut or delay long-term investment projects to meet upcoming performance targets. In a new paper me and my coauthor
Financial markets have historically been regulated. This regulation is motivated by the desire to rule out anti-competitive behavior, to prevent agency problems that arise in the presence of asymmetric information
26 January, 2016
The Intended and Unintended Consequences of Financial-Market Regulations
Grigory Vilkov
Have you felt the sustainable finance-related regulatory attention already?
5 May, 2020
Menglu Zhuang
Institutional Investors’ Views and Preferences on Climate Risk Disclosure
1 October, 2019
Zacharias Sautner
What is sustainable finance?
12 March, 2019
Ulf Moslener
How the Corona crisis will affect blockchain ecosystems
25 March, 2020
Prof. Dr. Philipp Sandner
The Tragedy of the Horizon: A Mandate for Financial Sector Regulations?
9 August, 2018
Oliver Schenker
This time’s the same: Eurozone sovereign and financial sector credit risk
26 July, 2018
Prof. Dr. Sascha Steffen
Banken 2020: Zerrissen zwischen Tradition und Hightech
19 February, 2020
Jürgen Moormann
Why Does an Equal-Weighted Portfolio Outperform Value- and Price-Weighted Portfolios?
15 September, 2017
Grigory Vilkov
Abschaffung des Bargelds – eine Geisterdebatte
20 September, 2016
Jürgen Moormann
Sentimental Recovery
5 November, 2019
Grigory Vilkov
Do Private-Equity Firms Create Value in Cross-Border M&A?
27 July, 2016
Zacharias Sautner
How do Contracts between Firms address Opportunistic Behavior?
21 June, 2016
Zacharias Sautner
Implications of Financial Innovation for Capital Markets and Household Welfare
22 January, 2019
Grigory Vilkov
Do top executives behave myopically?
25 February, 2016
Zacharias Sautner
The Intended and Unintended Consequences of Financial-Market Regulations
26 January, 2016
Grigory Vilkov