Found 516 article(s) in category 'Financial Services'

Short-Termism and Capital Flows

Short-Termism and Capital Flows. Jesse Fried, Charles Wang, November 2018, Paper, “During 2007-2016, S&P 500 firms distributed to shareholders $7 trillion via buybacks and dividends, over 96% of their aggregate net income, prompting claims that “short-termism” is impairing firms’ ability to invest and innovate. We show that, when taking into account both direct and indirect equity issuances, net shareholder payouts by all public firms during this period were only 41% of net income. And, in fact, during this decade investment increased substantially while cash balances ballooned. In short, S&P 500 shareholder-payout figures cannot provide much basis for the notion that short-termism has been depriving public firms of needed capital.Link

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Twenty years of transparency research

Twenty years of transparency research. James Alt, October 26, 2018, Paper, “A keynote speech given at the conference “Public Sector Economics 2018 – Fiscal openness: transparency, participation and accountability in fiscal policies” organized by the Institute of Public Finance, International Budget Partnership and Friedrich-Ebert-Stiftung in Zagreb on October 26, 2018.” Link

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Challenges Ahead

Challenges Ahead. Ricardo Hausmann, 2018, Book Chapter, “Sovereign debt ratios in advanced and emerging economies have grown to near record highs, while in low-income countries, debt levels have been gradually building since the debt relief of the early 2000s. As global monetary conditions tighten, the burden of debt will grow, and rollover risks will increase. And with a more fragmented creditor base, timely and orderly restructurings may become harder to achieve. This chapter will explore these challenges and consider which policies might enhance crisis prevention and strengthen crisis resolution. It will also consider the extent to which these objectives can be pursued by individual countries, and where multilateral action may be required to improve the international architecture.Link

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Harvard’s Rogoff Says Next Global Crisis to Come From China

Harvard’s Rogoff Says Next Global Crisis to Come From China. Kenneth Rogoff, September 12, 2018, Video, “Harvard Professor Kenneth Rogoff discusses the risks posed by emerging markets and warns that the next global crisis may potentially come from China. He speaks on “Bloomberg Surveillance.” (Source: Bloomberg).Link

 

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Dodd-Frank regulations good and bad for financial system, Harvard director says

Dodd-Frank regulations good and bad for financial system, Harvard director says. Hal Scott, September 11, 2018, Video, “Hal Scott, director of the program on International Financial Systems at Harvard Law School, and Sebastian Mallaby, the Paul A. Volcker Senior Fellow for International Economics at the Council on Foreign Relations, discuss what triggered the financial crisis in 2008 and if we are safe from another.Link

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Crash Time

Crash Time. Kenneth Rogoff, September 7, 2018, Opinion, “A decade after the collapse of Lehman Brothers and the start of the global financial crisis, it is clear that many lessons have been learned, while many economic misconceptions remain embedded in the public consciousness. If economic history teaches us anything, it is to be mindful of our own limitations in a world of infinite uncertainties.Link

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What Next for the US Stock Market?

What Next for the US Stock Market? Martin Feldstein, August 28, 2018, Opinion, “August 22 marked the longest period of rising share prices in US history. But the stock market’s nine-year bull run won’t last much longer, as three factors drive up long-term interest rates, reducing the present value of future corporate profits and providing investors with an alternative to equities.Link

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Presidential Address: Pension Policy and the Financial System

Presidential Address: Pension Policy and the Financial System. David Scharfstein, August 24, 2018, Paper, “In this paper, I examine the effect of pension policy on the structure of financial systems around the world. In particular, I explore the hypothesis that policies that promote pension savings also promote the development of capital markets. I present a model that endogenizes the extent to which savings are intermediated through banks or capital markets, and derive implications for corporate finance, household finance, banking, and the size of the financial sector. I then present a number of facts that are broadly consistent with the theory and examine a variety of alternative explanations of my findings.Link

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