Thought Leadership

We discuss which variables can help us predict corporate defaults The current pandemic is triggering a stark growth in corporate...

We investigate whether investing in stocks that are close to default generates a premium Hundreds of firms are going bust these days....

We review a classic question on the relation between financial risk and equity returns, and discover that the evidence defies the theory...

We discuss how financial risk and asset risk are co-determined, and how this is reflected in the beta of assets and in the beta of equity...

We examine whether firms pursue an optimum leverage ratio, what factors affect optimum leverage, and how fast firms converge towards the...