Publications from the department of finance

Publications

• Ryduchowska, Malgorzata & Groen-Xu, Moqi (2025)
  Norwegian Green Bond Market

  [Report Research]. Centre for Corporate Governance Research

• Stacescu, Bogdan & Berzins, Janis (2025)
  An Overview of Norwegian Firms

  [Report Research]. Center for Corporate Governance Research

• Liu, Zack & Winegar, Adam Walter (2025)
  Economic Magnitudes within Reason

  Journal of Corporate Finance, 91, s. 1-19. Doi: https://doi.org/10.1016/j.jcorpfin.2024.102707

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  A common method of calculating economic magnitudes is to multiply the regression coefficient of the variable of interest by its sample standard deviation. This method is often problematic in finance settings when researchers use granular fixed effects. We show that in many recently published finance papers and for many common finance variables, the sample standard deviation is much larger than the within-group variation that identifies the regression coefficient, and that within-group changes of this magnitude are rare. Without additional assumptions, this common approach can significantly inflate the economic magnitude of the identified effect and impact the comparison of effects among different variables of interest. We recommend using within-group measures of variation to improve the interpretation of economic magnitudes in this setting.

• Alfaro, Iván & Park, Hoonsuk (2025)
  Firm Uncertainty and Households: Spending, Savings, and Risks

  Journal of Financial Economics, 172, s. 1-15. Doi: https://doi.org/10.1016/j.jfineco.2025.104143

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  Using daily banking and credit card data for thousands of households linked to U.S. publicly listed employers, we find novel evidence that firm-specific uncertainty persistently reduces future spending and spurs precautionary savings. A one-standard-deviation rise in option-implied firm volatility—akin to the S&P 500 VIX—predicts a $106 monthly spending drop (8 hours of wages) and a $193 increase in bank balances, reflecting notable cutbacks in typical non-durable goods and services. The mechanism operates through heightened household risks: firm uncertainty expands both income and consumption risk over the next year, with the largest effects among lower and top earners (notably the top 1%). Employers only partly shield earnings, while households only partly self-insulate consumption risk via smoothing channels. Detrimental uncertainty effects on households are stronger than firm stock price declines.

• Garmaise, Mark; Jansen, Mark & Winegar, Adam Walter (2025)
  Collateral Damage: Low-Income Borrowers Depend on Income-Based Lending

  Journal of Financial and Quantitative Analysis, , s. 1-107. Doi: https://doi.org/10.1017/s0022109025102433

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  We use negative durability shocks from vehicle discontinuations to study asset-backed lending (ABL) and income-based lending (IBL) in auto finance. Discontinuations lead to increased down payments, higher loan-to-value ratios, and larger post-default personal recoveries. These results all indicate that economically disadvantaged consumers are relatively more reliant on unsecured IBL, in stark contrast to corporate financing patterns. Vehicle recoveries on discontinued cars are lower for borrowers who purchase after discontinuations, implying that depreciation is partially borrower-dependent. Our findings suggest that lower-income borrowers, in particular, benefit from technologies that facilitate IBL such as income monitoring.

• Nyborg, Kjell Gustav & Woschitz, Jiri (2025)
  Robust difference-in-differences analysis when there is a term structure

  Journal of Financial Economics, 170, s. 1-12. Doi: https://doi.org/10.1016/j.jfineco.2025.104081

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  For variables with a term structure, the standard difference-in-differences (DiD) model is predisposed toward misspecification, even under random assignment, because of heterogeneity over the maturity spectrum and imperfect matching between treated and control units. Estimated treatment effects that are false, biased, or hard to interpret become a concern. Neither unit fixed effects nor standard term-structure controls resolve the problem. Solutions that overcome imperfect matching involve estimating the term structure of hypothesized treatment, which is also what is economically interesting (regardless of matching efficiency). These issues are not unique to DiD analysis, but are generic to group-assignment settings.

• Betermier, Sebastien; Calvet, Laurent, Knüpfer, Samuli & Kværner, Jens Sørlie (2025)
  Investor factors

  Journal of Finance, 8(5) , s. 2789-2830. Doi: https://doi.org/10.1111/jofi.13474

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  This paper develops an empirical methodology for extracting pricing factors from investor portfolio data. We apply this approach to the stockholdings of Norwegian individual investors from 1997 to 2017. A two-factor model, featuring the market portfolio and a long-short portfolio constructed from the holdings of investors sorted by age or wealth, explains both the common variation in portfolio holdings and the cross section of stock returns. Portfolio tilts toward the long-short investor factor correlate with indebtedness, macroeconomic exposure, gender, and investment experience. Our paper illustrates the benefits of using holdings data for explaining the risk premia of financial assets.

• Bertsch, Christoph; Hull, Isaiah, Lumsdaine, Robin L. & Zhang, Xin (2025)
  Central bank mandates and monetary policy stances: Through the lens of Federal Reserve speeches

  Journal of Econometrics, Doi: https://doi.org/10.1016/j.jeconom.2025.105948

• Fagereng, Andreas; Gomez, Matthieu, Gouin-Bonenfant, Emilien, Holm, Martin Blomhoff, Moll, Benjamin & Natvik, Gisle James (2025)
  Asset-Price Redistribution

  Journal of Political Economy, 133(11) , s. 3494-3549. Doi: https://doi.org/10.1086/736769 - Full text in research archive

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  Asset valuations across many asset classes have increased substantially over the last several decades. While these rising valuations had important effects on the distribution of wealth, little is known regarding their redistributive effects in terms of welfare. To make progress on this question, we develop a sufficient statistic for the money-metric welfare gain of deviations in asset valuations. This welfare gain depends on the present value of an individual’s net asset sales rather than asset holdings: higher asset valuations benefit prospective sellers and harm prospective buyers. We estimate this quantity using panel microdata covering the universe of financial transactions in Norway from 1994 to 2019. We further demonstrate how to adapt our baseline statistic to account for important considerations, such as incomplete markets and collateral constraints. We find that the rise in asset valuations had large redistributive effects: it redistributed from the young to the old and from the poor to the wealthy.

• Giordani, Paolo (2024)
  SMARTboost Learning for Tabular Data

  Journal of Financial Econometrics, 23(3) , s. 1-29. Doi: https://doi.org/10.1093/jjfinec/nbae028 - Full text in research archive

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  We introduce SMARTboost (boosting of symmetric smooth additive regression trees), an extension of gradient boosting machines with improved accuracy when the underlying function is smooth or the sample small or noisy. In extensive simulations, we find that the combination of smooth symmetric trees and of carefully designed priors gives SMARTboost a large edge (in comparison with XGBoost and BART) on data generated by the most common parametric models in econometrics, and on a variety of other smooth functions. XGBoost outperforms SMARTboost only when the sample is large, and the underlying function is highly discontinuous. SMARTboost’s performance is illustrated in two applications to global equity returns and realized volatility prediction.

• Klingler, Sven & Syrstad, Olav (2024)
  The SOFR discount

  Journal of Financial Economics, 164 Doi: https://doi.org/10.1016/j.jfineco.2024.103989 - Full text in research archive

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  The transition from London Interbank Offered Rate (LIBOR) to Secured Overnight Financing Rate (SOFR) affects the reference rate of floating-rate debt worth trillions of dollars. We provide the first evidence highlighting a benefit of the benchmark transition for debt markets. Focusing on the market for dollar-denominated floating rate notes (FRNs), we compare the yield spreads of FRNs linked to LIBOR and SOFR, issued by the same entity during the same month. After adjusting for the maturity-matched spreads from derivatives markets, we find significantly lower spreads for SOFR-linked FRNs. We link this SOFR discount to the enhanced price stability of SOFR-linked FRNs.

• Longarela, Inaki Rodriguez & Bjønnes, Geir Høidal (2024)
  Price Discovery for Competing Currency Numeraires

  Multinational Finance Journal, 28(3-4) , s. 3-39. Doi: https://doi.org/10.2139/ssrn.4022550

• Jansen, Mark & Winegar, Adam Walter (2024)
  Nonpecuniary Benefits: Evidence from the Location of Private Company Sales

  The Review of Corporate Finance Studies, Doi: https://doi.org/10.1093/rcfs/cfae010 - Full text in research archive

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  This paper investigates whether acquisition prices reflect a specific set of nonpecuniary benefits preferred by entrepreneurs: the quality of life (QOL) associated with the business location. Using data on private firm acquisitions, we find that target firms in high-QOL cities sell for a 14% to 20% premium. Traditional financial factors do not explain this premium, which dissipates when the buyer is unlikely to have preferences for high-QOL locations. Using wage-to-housing cost differentials to decompose local amenities and data on migration patterns, we find that QOL amenities have a greater impact on entrepreneurs’ location decisions relative to wage workers. (JEL G02, G32, G34, J32, L26, R39)

• Xiouros, Costas & Zapatero, Fernando (2024)
  Disagreement, information quality and asset prices

  Journal of Financial Economics, 153 Doi: https://doi.org/10.1016/j.jfineco.2023.103774

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  We present an analytical solution for a pure exchange economy featuring a continuum of agents with disagreement, time-varying information quality, and reference-dependent preferences. Our general equilibrium model exhibits stationary dynamics. By examining the implications of the model, we find that the commonly studied asset pricing channels of disagreement have limited quantitative significance. On the other hand, variations in information quality, which affect disagreement levels, lead to substantial excess stock price volatility. This finding contributes significantly to explaining the equity premium and sheds light on empirical relationships between forecast dispersion and asset prices, the upward sloping real yield curve, and long-term yield movements.

• Juelsrud, Ragnar Enger & Wold, Ella Getz (2024)
  The Importance of Unemployment Risk for Individual Savings

  Management science, , s. 1-24. Doi: https://doi.org/10.1287/mnsc.2023.00987 - Full text in research archive

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  In this paper, we use a novel natural experiment and Norwegian tax data to quantify the causal impact of unemployment risk on individual savings. By comparing individuals who live in the same area but face different increases in risk, we show that a one-percentage-point increase in unemployment rates increases safe assets by 1.3%. Reas- suringly, this effect is driven by low-tenured workers, who face the highest increase in risk. Savings in risky financial assets remain unaffected, implying a decrease in the overall risky share of individual portfolios. We use two independent approaches, relying either on cross-sectional variation or time series variation, to quantify the importance of job loss risk in accounting for higher savings during recessions. Our results suggest that unemploy- ment risk can explain 60%–80% of the recession-induced increase in safe assets

• Berzins, Janis & Pajuste, Anete (2024)
  Family firm successions: First-generation transitions in Latvia

  Finance Research Letters, 64 Doi: https://doi.org/10.1016/j.frl.2024.105410

• Brogaard, Jonathan; Gerasimova, Nataliya & Rohrer, Maximilian (2024)
  The effect of female leadership on contracting from Capitol Hill to Main Street

  Journal of Financial Economics, 155, s. 1-26. Doi: https://doi.org/10.1016/j.jfineco.2024.103817

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  This paper provides novel evidence that female politicians increase the proportion of US government procurement contracts allocated to women-owned firms. For identification, we use a regression discontinuity design on a sample of mixed-gender elections in the US House of Representatives. The effect grows over a female representative's tenure and concentrates in female representatives who are on powerful congressional committees. Changes in the pool of and behavior by government contractors cannot explain the result. The more gender-balanced representation in government contracting is not associated with economic costs.

• Davydiuk, Tetiana; Marchuk, Tatyana & Rosen, Samuel (2024)
  Direct lenders in the U.S. middle market

  Journal of Financial Economics, 162 Doi: https://doi.org/10.1016/j.jfineco.2024.103946 - Full text in research archive

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  This paper studies the rise of direct lending using a comprehensive dataset of investments by business development companies (BDC). We exploit three exogenous shocks to credit supply, including new banking regulations and a major finance company collapse, to establish that BDC capital acts as a substitute for traditional financing. Using firm-level data, we further document that firms’ access to BDC funding stimulates their employment growth and patenting activity. Beyond credit provision, BDCs contribute to firm growth through managerial assistance.

• Cooley, Thomas F.; Henriksen, Espen & Nusbaum, Charlie (2024)
  Demographic obstacles to European growth

  European Economic Review, 169, s. 1-29. Doi: https://doi.org/10.1016/j.euroecorev.2024.104829 - Full text in research archive

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  The growth rates of the four largest European economies – France, Germany, Italy, and the United Kingdom – have slowed in recent decades. The persistence of the slowdown suggests that a low-frequency structural change is at work. Longer life expectancy and declining fertility have led to gradually ageing populations. These demographic trends contribute to economic growth directly through aggregate savings and labor supply decisions and indirectly through distortionary taxes needed to fund pension systems. We provide a structural framework to quantify the demographic contributions to historical and future growth rates. Several reforms have been suggested to increase late-life labor supply and, through that, output growth. Our structural framework also gives a welfare measure to evaluate these proposed reforms. The welfare implications are heterogeneous across age, wealth, and income. Welfare heterogeneity offers some insights into the political economy of pension reforms and the opposition to their implementation despite the projected increase in aggregate output growth.

• Fagereng, Andreas; Onshuus, Helene & Torstensen, Kjersti Næss (2024)
  The consumption expenditure response to unemployment: Evidence from Norwegian households

  Journal of Monetary Economics, 146(103578) , s. 1-20. Doi: https://doi.org/10.1016/j.jmoneco.2024.103578 - Full text in research archive

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  This paper examines heterogeneity in household income and consumption responses to unemployment, using granular administrative tax data from Norway. On average, unemployment results in a significant, lasting income reduction, accompanied by a decrease in consumption expenditures of between one-third to one-half of the income loss. We find that households with greater liquid assets at the outset experience less of a decline in consumption, whereas those with higher levels of debt encounter a more substantial decrease. Notably, also the interaction of liquid assets and debt holdings matters for the consumption response. While households with larger initial liquid asset holdings on average respond less, the analyses show that this is not the case among households that simultaneously hold substantial amounts of debt, thus adding to a more nuanced view of the importance of household heterogeneity for economic outcomes. Furthermore, our investigation into heterogeneity across family composition and child age uncovers distinct patterns in consumption responses, highlighting the varied impacts of unemployment. Lastly, we find that spending patterns, as indicated by the marginal propensity to consume (MPC), become more pronounced during recessions.

• Maggio, Marco Di; Franzoni, Francesco, Massa, Massimo & Roberto, Tubaldi (2024)
  Strategic trading as a response to short sellers

  Journal of financial markets, 69 Doi: https://doi.org/10.1016/j.finmar.2024.100911 - Full text in research archive

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  We examine whether the strategic response to short selling by other informed investors decelerates the incorporation of positive information. We find a sizeable reduction of positive information impounding before earnings announcements for stocks more exposed to short selling. Consistent with strategic behavior, we find that investors with positive views slow down their trades when short sellers are also present. Furthermore, they break up their buy trades across multiple brokers, suggesting they wish to prevent a price impact. Thus, the strategic reaction to short selling appears to have implications for information impounding before public information releases.

• Hull, Isaiah; Sattath, Or, Diamanti, Eleni & Wendin, Göran (2024)
  Quantum Technology for Economists

  Springer Nature

• Andrews, Spencer; Colacito, Riccardo, Croce, Mariano M. & Gavazzoni, Federico (2024)
  Concealed carry

  Journal of Financial Economics, 159 Doi: https://doi.org/10.1016/j.jfineco.2024.103874 - Full text in research archive

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  The slope carry takes a long (short) position in the long-term bonds of countries with steeper (flatter) yield curves. The traditional carry takes a long (short) position in countries with high (low) short-term rates. We document that: (i) the slope carry return is slightly negative (strongly positive) in the pre (post) 2008 period, whereas it is concealed over longer samples; (ii) the traditional carry return is lower post-2008; and (iii) expected global growth and inflation declined post-2008. We connect these findings through an equilibrium model in which countries feature heterogeneous exposure to news shocks about global output and global inflation.

• Lotfi, Somayyeh; Pagliardi, Giovanni, Paparoditis, Efstathios & Zenios, Stavros A. (2024)
  Hedging political risk in international portfolios

  European Journal of Operational Research, 322|(2) , s. 629-646. Doi: https://doi.org/10.1016/j.ejor.2024.10.017 - Full text in research archive

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  We show that internationally diversified portfolios carry sizeable political risk premia and expose investors to tail risk. We obtain political efficient frontiers with and without hedging political risk using a portfolio selection model for skewed distributions and develop a new asymptotic inference test to compare portfolio performance. Politically hedged portfolios outperform a broad market index and the equally weighted portfolio for US, Eurozone, and Japanese investors. Political risk hedging is not subsumed by currency hedging, and the diversification gains of politically hedged portfolios persist under currency hedging and transaction cost frictions. Hedging political risk induces equity home bias but does not fully explain the puzzle.

• Geelen, Thomas; Hajda, Jakub, Morellec, Erwan & Winegar, Adam Walter (2024)
  Asset life, leverage, and debt maturity matching

  Journal of Financial Economics, 154 Doi: https://doi.org/10.1016/j.jfineco.2024.103796 - Full text in research archive

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  Capital ages and must eventually be replaced. We propose a theory of financing in which firms borrow to finance investment and deleverage as capital ages to have enough financial slack to finance replacement investments. To achieve these dynamics, firms issue debt with a maturity that matches the useful life of assets and a repayment schedule that reflects the need to free up debt capacity as capital ages. In the model, leverage and debt maturity are negatively related to capital age while debt maturity and the length of debt cycles are positively related to asset life. We provide empirical evidence that strongly supports these predictions.

• Keloharju, Matti; Knüpfer, Samuli, Müller, Dagmar & Tåg, Joacim (2024)
  PhD studies hurt mental health, but less than previously feared

  Research Policy, 53(8) Doi: https://doi.org/10.1016/j.respol.2024.105078 - Full text in research archive

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  We study the mental health of PhD students in Sweden using comprehensive administrative data on prescriptions, specialist care visits, hospitalizations, and causes of death. We find that about 7 % (5 %) of PhD students receive medication or diagnosis for depression (anxiety) in a given year. These prevalence rates are less than one-third of the earlier reported survey-based estimates, and even after adjusting for difference in methodology, 43 % (72 %) of the rates in the literature. Nevertheless, PhD students still fare worse than their peers not pursuing graduate studies. Our difference-in-differences research design attributes all of this health disadvantage to the time in the PhD program. This deterioration suggests doctoral studies causally affect mental health

• Fjære-Lindkjenn, Jeanette; Aastveit, Knut Are, Karlman, Markus Johan, Kinnerud, Karin, Juelsrud, Ragnar Enger & Wold, Ella Getz (2024)
  Hvordan virker utlånsforskriften? En oppsummering av forskningslitteraturen

  Samfunnsøkonomen, 138(2) - Full text in research archive

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  I denne artikkelen forsøker vi å svare på om utlånsforskriften har virket etter hensikten og hvilke kostnader den påfører husholdningene. Forskningslitteraturen indikerer at boliglånsregulering bidrar til noe lavere gjelds- og boligprisvekst, men at det er mer usikkert om den reduserer husholdningenes sårbarhet for uforutsette hendelser som renteøkninger og arbeidsledighet. Utlånsforskriften påfører samtidig mange husholdninger kostnader ved at den begrenser muligheten for konsumglatting og kan gjøre det vanskeligere for unge å kjøpe sin første bolig. Reguleringen kan også forsterke viktigheten av formuende foreldre for muligheten til boligkjøp. Høy inflasjon og rente kan redusere behovet for forskriften og øke kostnadene.

• Menkveld, Albert; Dreber, Anna, Holzmeister, Felix, Huber, Juergen, Johannesson, Magnus, Kirchler, Michael, Neusus, Sebastian, Razen, Michael, Weitzel, Utz, Abad-Diaz, David, Abudy, Menachem, Adrian, Tobias, Ait-Sahalia, Yacine, Akmansoy, Olivier, Alcock, Jamie T., Alexeev, Vitali, Aloosh, Arash, Amato, Livia, Amaya, Diego, Angel, James J., Avetikian, Alejandro T., Bach, Amadeus, Baidoo, Edwin, Bakalli, Gaetan, Bao, Li, Bardon, Andrea, Bashchenko, Oksana, Bindra, Parampreet C., Bjønnes, Geir Høidal, Black, Jeffrey R., Black, Bernard S., Bogoev, Dimitar, Correa, Santiago Bohorquez, Bondarenko, Oleg, Bos, Charles S., Bosch-Rosa, Ciril, Bouri, Elie, Brownlees, Christian, Calamia, Anna, Cao, Viet Nga, Capelle-Blancard, Gunther, Romero, Laura M. Capera, Caporin, Massimiliano, Carrion, Allen, Caskurlu, Tolga, Chakrabarty, Bidisha, Chen, Jian, Chernov, Mikhail, Cheung, William, Ellen, Saskia ter, Ødegaard, Bernt Arne, Longarela, Inaki Rodriguez, Wika, Hans C. & Yuferova, Darya (2024)
  Non-Standard Errors

  Journal of Finance, 79(3) Doi: https://doi.org/10.1111/jofi.13337 - Full text in research archive

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  In statistics, samples are drawn from a population in a data‐generating process (DGP). Standard errors measure the uncertainty in estimates of population parameters. In science, evidence is generated to test hypotheses in an evidence‐generating process (EGP). We claim that EGP variation across researchers adds uncertainty—nonstandard errors (NSEs). We study NSEs by letting 164 teams test the same hypotheses on the same data. NSEs turn out to be sizable, but smaller for more reproducible or higher rated research. Adding peer‐review stages reduces NSEs. We further find that this type of uncertainty is underestimated by participants.

• Zhang, Tong (2023)
  The illusion of meritocracy

  Social Science Information, 63(1) , s. 114-128. Doi: https://doi.org/10.1177/05390184241230406 - Full text in research archive

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  Meritocracy claims to reward the meritorious with more resources, thereby achieving social efficiency and justice in a level playground. This article argues that the rise of meritocracy in a society is the institutional consequence of adopting progressive humanism, an ideal-type worldview that advocates the harmonious co-realization of individual achievement and social contribution. However, meritocracy is a self-defeating illusion because, even in a level playground, it only rewards conspicuous and wasteful display of ‘merit’ rather than genuine contributions to society. Similar to the promise of an afterlife to Catholicism, the illusion of meritocracy constitutes an indispensable theodicy to progressive humanism. For societies holding such worldviews, meritocracy is a necessary illusion that cannot be dispelled by institutional reforms or political movements.

• Ehling, Paul & Xiouros, Costas (2023)
  Cyclical β

  Social Science Research Network (SSRN), Doi: https://doi.org/10.2139/ssrn.4558796

• Zhang, Tong (2023)
  Critical Realism: A Critical Evaluation

  Social Epistemology, 37(1) , s. 15-29. Doi: https://doi.org/10.1080/02691728.2022.2080127 - Full text in research archive

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  Critical realism, championed by its proponents as the most promising post-positivist social science paradigm, has gained significant influence in the last few decades. This paper provides a critical evaluation of the critical realism movement in the hope of facilitating more fruitful dialogues between its proponents and rivalling schools of sociologists. Two concerns are raised about contemporary critical realism. First, critical realism is not the only philosophical school against positivism and not necessarily the best. Second, critical realists exaggerate the importance of critical realism to social science and conflate philosophy of science with sociological theories.

• Hull, Isaiah & Sattath, Or (2023)
  The properties of contemporary money

  Journal of economic surveys, Doi: https://doi.org/10.1111/joes.12575

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  The properties of money commonly referenced in the economics literature were originally identified by Jevons and Menger in the late 1800s and were intended to describe physical currencies, such as commodity money, metallic coins, and paper bills. In the digital era, many non-physical currencies have either entered circulation or are under development, including demand deposits, cryptocurrencies, stablecoins, central bank digital currencies, in-game currencies, and quantum money. These forms of money have novel properties that have not been studied extensively within the economics literature, but may ultimately determine which currencies prevail in the forthcoming era of currency competition. This review makes the first exhaustive attempt to identify and organize all properties of physical and digital forms of money. It examines both the economics and computer science literatures and categorizes properties within an expanded version of the canonical Jevons–Menger framework.

• Klingler, Sven & Sundaresan, Suresh M. (2023)
  Diminishing Treasury Convenience Premiums: Effects of Dealers' Excess Demand In Auctions

  Journal of Monetary Economics, Doi: https://doi.org/10.1016/j.jmoneco.2023.01.002 - Full text in research archive

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  After the global financial crisis, the yields of U.S. Treasury bills frequently exceed other risk-free rate benchmarks, thereby pointing to a diminishing convenience premium. Constructing a new measure of dealers' balance sheet constraints for providing intermediation in U.S. Treasury markets, we trace these diminishing convenience premiums to primary dealers' ability to act as intermediaries. Even after accounting for Treasury supply, levels of interest rates, and other controls, falling excess demand of primary dealers in Treasury auctions, their increased Treasury holdings, and balance sheet constraints post-2015, remain key variables in explaining the diminishing convenience premiums.

• Heyerdahl-Larsen, Christian & Walden, Johan (2023)
  On efficiency in disagreement economies

  Social Choice and Welfare, 61, s. 763-763. Doi: https://doi.org/10.1007/s00355-023-01467-1 - Full text in research archive

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  We analyze multiple-beliefs based efficiency measures in economies with risk and disagreement, including belief neutral efficiency and inefficiency, incomplete knowledge efficiency, efficiency based on unanimity, and utility aggregators that minimize Bergson welfare functions over multiple beliefs. We provide equivalence results under technical conditions that are satisfied in several work-horse economies, including the exchange economy and a standard economy with a linear production technology. We also provide several examples for which these measures differ. Our results show that the further away one gets from the standard exchange economy, the more the different multiple-beliefs based measures differ in the allocations they identify as efficient, in general. Consequently, the more important the choice of efficiency measures becomes.

• Ehling, Paul; Lundeby, Stig Roar Haukø & Sørensen, Lars Qvigstad (2023)
  Portfolio Choice with ESG Disagreement: Customizing Sustainability through Direct Indexing

  The journal of beta investment strategies, 14(3) , s. 132-149. Doi: https://doi.org/10.3905/jbis.2023.1.041

• Møller, Stig & Priestley, Richard (2023)
  The Role of the Discount Rate in Investment and Employment Decisions

  Journal of Financial and Quantitative Analysis, 58(2) , s. 914-938. Doi: https://doi.org/10.1017/S0022109021000715 - Full text in research archive

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  Time variation in the discount rate affects investment and employment decisions in a manner consistent with Q-theory predictions. This evidence is uncovered when using cyclical consumption as a proxy for the discount rate. The results, which are consistent across both U.S. and international data, suggest that firms respond rationally to variations in the cost of capital and that the discount rate has a substantial impact on macroeconomic dynamics and hence business cycle fluctuations.

• Xiouros, Costas & Zapatero, Fernando (2023)
  Disagreement, information quality and asset prices

  Social Science Research Network (SSRN), Doi: https://doi.org/10.2139/ssrn.3489502

• Croce, Mariano Massimiliano; Marchuk, Tatyana & Schlag, Christian (2023)
  The Leading Premium

  The Review of financial studies, 36(8) , s. 2997-3033. Doi: https://doi.org/10.1093/rfs/hhad009 - Full text in research archive

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  In this paper, we consider conditional measures of lead-lag relationships between aggregate growth and industry-level cash-flow growth in the US. Our results show that firms in leading industries pay an average annualized return 3.6% higher than that of firms in lagging industries. Using both time series and cross sectional tests, we estimate an annual pure timing premium ranging from 1.2% to 1.7%. This finding can be rationalized in a model in which (a) agents price growth news shocks, and (b) leading industries provide valuable resolution of uncertainty about the growth prospects of lagging industries.

• Alfaro, Iván; Bloom, Nicholas & Lin, Xiaoji (2023)
  The Finance Uncertainty Multiplier

  Journal of Political Economy, 132(2) , s. 577-615. Doi: https://doi.org/10.1086/726230 - Full text in research archive

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  We show how real and financial frictions amplify, prolong and propagate thenegative impact of uncertainty shocks. We first use a novel instrumentation strategy toaddress endogeneity in estimating the impact of uncertainty by exploiting differentialfirm exposure to exchange rate, policy, and energy price volatility in a panel of USfirms. Using common proxies for financial constraints we show that ex-ante financiallyconstrained firms cut their investment even more than unconstrained firms following anuncertainty shock. We then build a general equilibrium heterogeneous firms model withreal and financial frictions, finding financial frictions: i)amplifyuncertainty shocks bydoubling their impact on output; ii) increasepersistenceby extending the duration ofthe drop by 50%; and iii)propagateuncertainty shocks by spreading their impact ontofinancial variables. These results highlight why in periods of greater financial frictionsuncertainty can be particularly damaging.

• Chaboud, Alain; Rime, Dagfinn & Sushko, Vladyslav (2023)
  The foreign exchange market

  Research Handbook of Financial Markets, , s. 253-275. Doi: https://doi.org/10.4337/9781800375321.00020

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  This chapter discusses the structure and functioning of the spot foreign exchange (FX) market. The market structure, which has become far more complex over the past three decades, has mostly evolved endogenously as the global FX market is subject to notably less regulatory oversight than equity and bond markets in most countries. Major banks used to dominate liquidity provision, but they have found their role challenged by High Frequency Trading firms in an increasingly fragmented electronic market. The information structure of the market has also changed. As such, high-frequency cross-asset correlations, especially with the futures market, have become more important. The chapter also discusses the important role of the official sector in the FX market, and it highlights a few special topics such as flash events and the FX fixing scandal. We conclude with some suggestions for future research.

• Davydiuk, Tetiana; Marchuk, Tatyana & Rosen, Samuel (2023)
  Market Discipline in the Direct Lending Space

  The Review of financial studies, Doi: https://doi.org/10.1093/rfs/hhad081

  Show summary

  Using the exclusion of business development companies (BDCs) from stock indexes, this paper studies the effectiveness of market discipline in the direct lending space. Amid share sell-offs by institutional investors, a drop in BDCs’ valuations limits their ability to raise new equity capital. Following this funding shock, BDCs do not adjust their capital structure while reducing the risk exposure of their portfolios. We document a greater reduction in risk for BDCs subject to stronger market discipline from their debtholders. BDCs pass through the capital shock to their portfolio firms by reducing their investment intensity.

• Henriksen, Espen & Tretvoll, Håkon (2023)
  Evaluering av strategiske allokeringsbeslutninger: Regionfordelingen i SPU

  Samfunnsøkonomen, 137(1) , s. 39-60. - Full text in research archive

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  Mange investorer velger å delegere forvaltningen av formuen sin til en forvaltningsbedrift. For eksempel har Finansdepartementet delegert gjennomføringen av forvaltningen av SPU («Oljefondet») til Norges Bank. Avkastning og risiko bestemmes da dels av de langsiktige strategiske valgene som oppdragsgiver har tatt og dels av de taktiske avvikene som forvalteren velger å ta. I denne artikkelen presenterer vi et strukturelt rammeverk for å evaluere strategiske valg og gi estimater på verdiskapingen ved disse valgene. Vi anvender dette på en beslutning i 2012 om hvordan aksjeporteføljen til SPU skulle fordeles på tvers av fire globale regioner.

• Eggertsson, Gauti; Juelsrud, Ragnar Enger, Summers, Lawrence H. & Wold, Ella Getz (2023)
  Negative Nominal Interest Rates and the Bank Lending Channel

  Review of Economic Studies, 91(4) , s. 2201-2275. Doi: https://doi.org/10.1093/restud/rdad085

  Show summary

  We investigate the bank lending channel of negative nominal policy rates from an empirical and theoretical perspective. For the empirical results we rely on Swedish data, including daily banklevel lending rates. We find that retail household deposit rates are subject to a lower bound (DLB). Empirically, once the DLB is met, the pass-through to mortgage lending rates and credit volumes is substantially lower and bank equity values decline in response to further policy rate cuts. We construct a banking sector model and use our estimate of the pass-through of negative policy rates to lending rates as an identified moment to parameterize the model and assess the impact of negative policy rates in general equilibrium. Using the theoretical framework, we derive a sufficient statistic for when negative policy rates are expansionary and when they are not.

• Burkart, Mike; Miglietta, Salvatore & Ostergaard, Charlotte (2023)
  Why Do Boards Exist? Governance Design in the Absence of Corporate Law

  The Review of financial studies, 36(5) , s. 1788-1836. Doi: https://doi.org/10.1093/rfs/hhac072

  Show summary

  We study under which circumstances firms choose to install boards and their roles in a historical setting in which neither boards nor their duties are mandated by law. Boards arise in firms with large, heterogeneous shareholder bases. We propose that an important role of boards is to mediate between heterogeneous shareholders with divergent interests. Voting restrictions are common and ensure that boards are representative and not captured by large blockholders. Boards are given significant powers to both mediate and monitor management, and these roles are intrinsically linked.

• Holm, Martin B.; Juelsrud, Ragnar Enger, Riiser, Mikkel Irving Fiksdal, König, Tobias, Hegna, Torje Meyer & Cao, Jin (2023)
  The Investment Channel of Monetary Policy: Evidence from Norway

  Working Paper, Norges Bank,

• Gala, Vito D.; Pagliardi, Giovanni & Zenios, Stavros A. (2023)
  Global political risk and international stock returns

  Journal of Empirical Finance, 72, s. 78-102. Doi: https://doi.org/10.1016/j.jempfin.2023.03.004 - Full text in research archive

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  Using novel measures of politics-policy uncertainty we document predictable variation in stock market returns across countries. Country characteristics and existing global and local risk factors do not account for such predictability, leading to large abnormal returns up to 15% per annum. We identify a global political risk factor (P-factor) commanding a risk premium of 11% per annum. High political uncertainty countries covary positively with the P-factor, earning higher average returns. Augmenting the global market portfolio with the P-factor significantly reduces pricing errors and improves cross-sectional fit. Politics-policy uncertainty affects returns through both cash-flow and discount rate channels.

• Keloharju, Matti; Knüpfer, Samuli & Tåg, Joacim (2023)
  CEO health

  Leadership Quarterly, 34(3) Doi: https://doi.org/10.1016/j.leaqua.2022.101672 - Full text in research archive

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  Using comprehensive data on 28 cohorts in Sweden, we analyze CEO health and its determinants and outcomes. We find CEOs are in much better health than the population and on par with other high-skill professionals. These results apply in particular to mental health and to CEOs of larger companies. We explore three mechanisms that can account for CEOs’ robust health. First, we find health predicts appointment to a CEO position. Second, the CEO position has no discernible impact on the health of its holder. Third, poor health is associated with greater CEO turnover. Here, both contemporaneous health and health at the time of appointment matter. Poor CEO health also predicts poor firm outcomes. We find a statistically significant association between mental health and corporate performance for smaller-firm CEOs, for whom a one standard deviation deterioration in mental health translates into a performance reduction of 6% relative to the mean.

• Priestley, Richard; Cooper, Ilan & Mitrache, Andreea (2022)
  A Global Macroeconomic Risk Model for Value, Momentum, and Other Asset Classes

  Journal of Financial and Quantitative Analysis, Doi: https://doi.org/10.1017/S0022109020000824

• Zhang, Tong (2022)
  Reinterpreting Science as a Vocation

  Max Weber Studies, 22(1) , s. 55-73. Doi: https://doi.org/10.1353/max.2022.0003

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  Weber’s “science as a vocation” has often been viewed as a therapeutic concept with no functional significance in the fully bureaucratized and professionalized modern science. However, development in the philosophy of science in the last century, especially the Kuhnian thesis of the discontinuity of scientific progress and the Duhem-Quine thesis of underdetermination, shows that Weber’s distinction between science as a vocation and science as a profession (career) can potentially answer one of the oldest questions in science studies: What makes scientific breakthroughs possible?

• Zhang, Tong (2022)
  The Logic of Wasteful Production

  Journal of Economics, Theology and Religion (JETR), 2(2) , s. 51-66. - Full text in research archive

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  Economic neoliberalism promises social efficiency with self-interested participants and free competition. This doctrine is challenged by the extensive production of wasteful goods and services in the contemporary West. By studying three types of wasteful production—conspicuous goods, conspicuous profession, and information overproduction— this article argues that the cause of wasteful production is nothing but the producers’ profit motive. The discussion of wasteful production provides a first attempt to extend Max Weber’s interpretivist sociology to the study of Nietzscheism, an ideal-type worldview preaching self-realization and power struggle. It adds novel empirical and theoretical support to the Weber thesis by showing that ascetic Protestantism facilitates productive efficiency by reducing not only hedonistic idleness and laziness, but also egoistic power-seeking and the induced wasteful production.

• Zhang, Tong (2022)
  Ethics and Society: A Theory of Comparative Worldviews

  Journal of Sociology and Christianity (JSC), 12(2) , s. 7-28. - Full text in research archive

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  This article outlines a theist social science paradigm. The central thesis, derived from the assumption of an omnibenevolent and powerful God, is the Law of Divine Selection. It states that the motives of people, or the worldviews they adopt, fundamentally determine their society’s organization and evolution. In particular, the more hedonic or Nietzscheist a society is, the less progressed it will be, and the more ascetic a society is, the more progressed it will be. This provides a consistent and parsimonious explanation of many puzzles in macro-historical studies, among them the Great Divergence between the West and China, the sudden eruption of the two World Wars, and the religious distribution of Nobel Laureates.

• Klingler, Sven (2022)
  High Funding Risk and Low Hedge Fund Returns

  Critical Finance Review, 11(3-4) , s. 505-539. Doi: https://doi.org/10.1561/104.00000119 - Full text in research archive

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  I show that hedge funds with a high exposure to market-wide funding shocks—measured by changes in Libor-OIS spreads—subsequently underperform funds with a low exposure to market-wide funding shocks by 5.76% annually on a risk-adjusted basis (t = 4.04). To explain this puzzling result, I hypothesize that this type of funding risk exposure is connected to hedge funds’ liabilities with limited upside in normal times and severe downside risk during funding crises. Supporting this hypothesis, the performance difference between low-funding-risk and high-funding-risk funds is largest when funding constraints are most binding and for funds with more fragile liabilities.

• Syrstad, Olav & Viswanath-Natraj, Ganesh (2022)
  Price-setting in the foreign exchange swap market: Evidence from order flow

  Journal of Financial Economics, 146(1) , s. 119-142. Doi: https://doi.org/10.1016/j.jfineco.2022.07.004

• Kisser, Michael & Rapushi, Loreta (2022)
  Equity issues, creditor control and market timing patterns: Evidence from leverage decreasing recapitalizations

  Journal of Empirical Finance, 67, s. 196-216. Doi: https://doi.org/10.1016/j.jempfin.2022.03.007 - Full text in research archive

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  We contribute to the literature on “market timing” by exploring periods of simultaneous equity issues and debt retirements (a leverage decreasing recapitalization, LDR). Contrary to traditional equity issues, LDRs are predicted by measures of creditor control whereas capital investment has no such predictive power. Nevertheless, LDRs occur after stock price run- ups and in periods of high valuation which subsequently decrease. The valuation dynamics are robust and also obtain for subsamples of LDR firms violating financial covenants. A comparison to debt retirements financed by illiquid asset sales and an analysis of discretionary cost items further corroborates the interpretation that LDR firms successfully “time the market” to finance the debt retirement.

• Rime, Dagfinn; Schrimpf, Andreas & Syrstad, Olav (2022)
  Covered Interest Parity Arbitrage

  The Review of financial studies, Doi: https://doi.org/10.1093/rfs/hhac026

• Elkahmi, Redouane; Kim, Daniel, Jo, Chanik & Salerno, Marco (2022)
  Agency Conflicts and Investment: Evidence from a Structural Estimation

  The Review of Corporate Finance Studies, 13(2) , s. 539-582. Doi: https://doi.org/10.1093/rcfs/cfac019 - Full text in research archive

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  We develop a dynamic capital structure model to study how agency conflicts between managers and shareholders affect the joint determination of financing and investment decisions. We show that there are two agency conflicts with opposing effects on a manager’s choice of investment: first, the consumption of private benefits channel leads managers not only to choose a lower optimal leverage, but also to underinvest, and second, compensation linked to firm size may lead managers to overinvest. We fit the model to the data and show that the average firm slightly overinvests, younger CEOs invest more than older ones, while CEOs with longer tenure overinvest more than CEOs with shorter tenure

• Chalak, Karim; Kim, Daniel, Miller, Megan & Pepper, John (2022)
  Reexamining the evidence on gun ownership and homicide using proxy measures of ownership

  Journal of Public Economics, 208(April) Doi: https://doi.org/10.1016/j.jpubeco.2022.104621 - Full text in research archive

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  Limited by the lack of data on gun ownership in the United States, ecological research linking firearms ownership rates to homicide often relies on proxy measures of ownership. Although the variable of interest is the gun ownership rate, not the proxy, the existing research does not formally account for the fact that the proxy is an error-ridden measure of the ownership rate. In this paper, we reexamine the ecological association between state-level gun ownership rates and homicide explicitly accounting for the measurement error in the proxy measure of ownership. To do this, we apply the results in Chalak and Kim (2020) to provide informative bounds on the mean association between rates of homicide and firearms ownership. In this setting, the estimated lower bound on the magnitude of the association corresponds to the conventional linear regression model estimate whereas the upper bound depends on prior information about the measurement error process. Our preferred model yields an upper bound on the gun homicide elasticity that is nearly three times larger than the fixed effects regression estimates that do not account for measurement error. Moreover, we consider three point-identified models that rely on earlier validation studies and on instrumental variables respectively, and find that the gun homicide elasticity nearly equals this upper bound. Thus, our results suggest that the association between gun homicide and ownership rates is substantially larger than found in the earlier literature.

• Lundeby, Stig Roar Haukø; Haug, Jørgen & Stamland, Tommy (2022)
  Utfordringer ved estimering av kapitalkostnad

  [Professional Article]. Magma forskning og viten, (5)

  Show summary

  Prosjektverdsetting krever estimater av forventede fremtidige kontantstrømmer og risikojustert kapitalkrav. For å få gode estimater av risikojusterte kapitalkrav må man overvinne flere grunnleggende hindringer: Vi diskuterer utfordringer for eksempel ved valg av proxy for markedsporteføljen, justering av betaer fra lignende selskap for finansiell og operasjonell giring samt utfordringer knyttet til sammensatte målsettinger for eksempel ved ESG-hensyn. Multifaktormodeller lover forbedret risikojustering av kapitalkravet, men introduserer flere nye utfordringer. Multifaktormodeller er statistisk skreddersydd til korttidsprognoser, mens man i viktige beslutninger betrakter langsiktige investeringer. Å erstatte kapitalverdimodellen med tilsynelatende mer sofistikerte multifaktormodeller kan lett svekke kvaliteten på prosjektvurderingene.

• Knüpfer, Samuli; Rantapuska, Elias & Sarvimäki, Matti (2022)
  Social Interaction in the Family: Evidence from Investors’ Security Holdings

  Review of Finance, 27(4) , s. 1297-1327. Doi: https://doi.org/10.1093/rof/rfac060 - Full text in research archive

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  We show that investors tend to hold the same securities as their parents. This intergenerational correlation is stronger for mothers and family members who are more likely to communicate with each other. An instrumental variables estimation and a natural experiment suggest that the correlation reflects social influence. This influence runs not only from parents to children, but also vice versa. The resulting holdings of identical securities increase intergenerational correlations in portfolio choice, exacerbate wealth inequality, and amplify the consequences of behavioral biases.

• Rime, Dagfinn; Schrimpf, Andreas & Syrstad, Olav (2022)
  Covered Interest Parity Arbitrage

  The Review of financial studies, 35(11) , s. 5185-5227. Doi: https://doi.org/10.1093/rfs/hhac026 - Full text in research archive

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  To understand deviations from covered interest parity (CIP), it is crucial to account for heterogeneity in funding costs across both banks and currency areas. For most market participants, the no-arbitrage relation holds fairly well when implemented using marginal funding costs and risk-free investment instruments. However, a few high-rated banks do enjoy CIP-arbitrage opportunities. Dealers avert inventory imbalances stemming from lower-rated banks' usage of FX swaps to obtain dollar funding by inducing opposite (arbitrage) flows from high-rated banks. Arbitrage trades are difficult to scale, however, because funding costs increase as soon as arbitrageurs increase positions.

• Keloharju, Matti; Knüpfer, Samuli & Tåg, Joacim (2022)
  What prevents women from reaching the top?

  Financial Management, Doi: https://doi.org/10.1111/fima.12390 - Full text in research archive

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  We use rich data on all business, economics, and engineering graduates in Sweden to study the lack of women among chief executive officers (CEOs). A comprehensive battery of graduates’ characteristics explains 40% of the gender gaps in CEO appointments and 60% among graduates with children. The explanatory power mostly comes from absences and unemployment, which are about twice as likely for women as men. These gender differences increase following childbirth, and they persist in the long run. We present and discuss potential explanations to the explained and remaining gaps. Although the large unexplained share makes it hard to pinpoint the exact reason for the gender gap in CEO appointments, the large contribution of labor market attachment to the explained share suggests work–family trade-offs are an important part of the story.

• Zhang, Tong (2021)
  Was Weber Really Wrong? A Comment on Some Recent Empirical Studies on Economic Growth

  Max Weber Studies, 21(2) , s. 203-212. Doi: https://doi.org/10.1353/max.2021.0022 - Full text in research archive

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  In the last two decades, there have been two influential papers in empirical economic growth, Becker and Woessmann (2009) and Acemoglu, Johnson, and Robinson (2001), which explicitly or implicitly claim that Weber's thesis has been refuted by empirical evidence. This paper argues that their alleged refutation of Weber is achieved by serious distortions and reductions of Weber's thesis combined with a sequence of unsubstantiated extrapolations.

• Hull, Isaiah; Bertsch, Christoph & Zhang, Xin (2021)
  Narrative fragmentation and the business cycle

  Economics Letters, Doi: https://doi.org/10.1016/j.econlet.2021.109783

• Hull, Isaiah; Bertsch, Christoph & Zhang, Xin (2021)
  Monetary Normalizations and Consumer Credit: Evidence from Fed Liftoff and Online Lending

  The International Journal of Central Banking,

• Hull, Isaiah; Apel, Mikael & Grimaldi, Marianna Blix (2021)
  How Much Information Do Monetary Policy Committees Disclose? Evidence from the FOMC's Minutes and Transcripts

  Journal of Money, Credit and Banking, Doi: https://doi.org/10.1111/jmcb.12885

• Ramirez, Jose Alejandro Lopez Lira Y (2021)
  Why do managers disclose risks accurately? Textual analysis, disclosures, and risk exposures

  Economics Letters, 204 Doi: https://doi.org/10.1016/j.econlet.2021.109896 - Full text in research archive

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  I provide an economic model that justifies using bag-of-words, topic modeling, and machine learning techniques to measure firms’ risk exposures using the percentage they allocate to each risk in their financial statements. The model provides a theoretical set of sufficient conditions under minimal assumptions that make managers optimally disclose risk accurately and give more space to the most critical risks. I document that the SEC Regulation satisfies this set of sufficient theoretical conditions and induces rational managers to disclose risks truthfully.

• Hull, Isaiah; Olovsson, Conny, Walentin, Karl & Westermark, Andreas (2021)
  Manufacturing decline and house price volatility

  Review of economic dynamics, Doi: https://doi.org/10.1016/j.red.2021.06.005

• Klingler, Sven & Syrstad, Olav (2021)
  Life After Libor

  Journal of Financial Economics, 141(2) , s. 783-801. Doi: https://doi.org/10.1016/j.jfineco.2021.04.017

• Kisser, Michael & Rapushi, Loreta (2021)
  Equity Issues, Creditor Control and Market Timing Patterns: Evidence from Leverage Decreasing Recapitalizations

  [Report Research]. SSRN

• Hull, Isaiah & Sattath, Or (2021)
  Revisiting the Properties of Money

  arXiv.org, Doi: https://doi.org/10.48550/arXiv.2111.04483

• Eggertsson, Gauti; Robbins, Jacob & Wold, Ella Getz (2021)
  Kaldor and Piketty's facts: The rise of monopoly power in the United States

  Journal of Monetary Economics, 124, s. 519-538. Doi: https://doi.org/10.1016/j.jmoneco.2021.09.007 - Full text in research archive

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  The macroeconomic data of the last fifty years have overturned at least two of Kaldor’s famous stylized growth facts: constant interest rates, and a constant labor share. At the same time, the research of Piketty and others has introduced several new and surprising facts: an increase in the financial wealth-to-output ratio in the US, an increase in measured Tobin’s Q, and a divergence between the marginal and average returns on capital. In this paper, we argue that these trends can be explained by an increase in market power and pure profits in the US economy—that is, the emergence of a non-zero-rent economy—along with forces that have led to a persistent long-term decline in real interest rates. We make three parsimonious modifications to the standard neoclassical model to explain these trends. Using recent estimates of the increase in markups and the decrease in real interest rates, we show that our model can quantitatively match these new stylized macroeconomic facts.

• Bøhren, Øyvind; Gjærum, Per Ivar & Hasle, Torkel (2021)
  Solstrøm fra boligtak er ofte godt for både klima og økonomi, men ikke i dagens Norge

  Samfunnsøkonomen, 135(5) , s. 33-51. - Full text in research archive

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  Vi bruker kvantitativ livsløpsanalyse (vugge-til-grav) og finner at solceller på private boligtak har stor, positiv effekt på klima og økonomi når de lages med ren, billig strøm og erstatter skitten, dyr strøm. Beliggenhet er derfor den grunnleggende forklaringen på solcellers verdiskaping. Selv om et solcelleanlegg på 60 m2 av et norsk boligtak produserer mye strøm, reduserer det likevel ikke klimautslippet med mer enn utslippet i Kina øker når anlegget lages. Derfor skapes det ingen global klimagevinst under våre forutsetninger. Brukes derimot anlegget i land der alternativ strøm er skitten, reduseres årlig CO2-utslipp med mer enn EUs samlede årsutslipp pr. innbygger. I Norge, hvor alternativ strøm både er ren og forholdsvis billig, finner vi at solstrøm er ulønnsomt samfunnsøkonomisk og ofte også privatøkonomisk. Norge er trolig blant de få land der både klimaeffekten og økonomieffekten av solceller på boligtak er negativ. Bedre solcelleteknologi, mer elektrifisering, høyere strømpris og mer strømeksport kan lett forbedre denne situasjonen.

• Fagereng, Andreas; Holm, Martin Blomhoff, Gulbrandsen, Magnus & Natvik, Gisle James (2021)
  How Does Monetary Policy Affect Household Indebtedness?

  [Professional Article]. Working Paper, Norges Bank, 2021(5) , s. 1-24.

• Fagereng, Andreas; Mogstad, Magne & Rønning, Marte (2021)
  Why Do Wealthy Parents Have Wealthy Children?

  Journal of Political Economy, 129(3) , s. 703-756. Doi: https://doi.org/10.1086/712446 - Full text in research archive

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  We show that family background matters significantly for children’s accumulation of wealth and investor behavior as adults, even when removing the genetic connection between children and the parents raising them. The analysis is made possible by linking Korean-born children who were adopted at infancy by Norwegian parents to a population panel data set with detailed information on wealth and socio-economic characteristics. The mechanism by which these Korean- Norwegian adoptees were assigned to adoptive families is known and effectively random. This mechanism allows us to estimate the causal effects from an adoptee being raised in one type of family versus another.

• Fagereng, Andreas; Holm, Martin Blomhoff & Natvik, Gisle James (2021)
  MPC Heterogeneity and Household Balance Sheets

  American Economic Journal: Macroeconomics, 13(4) , s. 1-54. Doi: https://doi.org/10.1257/mac.20190211 - Full text in research archive

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  We use sizable lottery prizes in Norwegian administrative panel data to explore how transitory income shocks are spent and saved over time, and how households’ marginal propensities to consume (MPCs) vary with household characteristics and shock size. We find that spending peaks in the year of winning and gradually reverts to normal within five years. Controlling for all items on households’ balance sheets and characteristics such as education and income, it is the amount won, age, and liquid assets that vary systematically with MPCs. Low-liquidity winners of the smallest prizes (around USD 1,500) are estimated to spend all within the year of winning. The corresponding estimate for high-liquidity winners of large prizes (USD 8,300-150,000) is slightly below one half. While conventional models will struggle to account for such high MPC levels, we show that a two-asset life-cycle model with a realistic earnings profile and a luxury bequest motive can account for both the time profile of consumption responses and their systematic co-variation with observables.

• Fagereng, Andreas; Holm, Martin Blomhoff & Torstensen, Kjersti Næss (2021)
  Housing wealth in Norway, 1993–2015

  Journal of Economic and Social Measurement, 45(1) , s. 65-81. Doi: https://doi.org/10.3233/JEM-200471 - Full text in research archive

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  We provide a new estimate of household-level housing wealth in Norway between 1993 and 2015 using an ensemble machine learning method on housing transaction data. The new housing wealth measure is an improvement over existing data sources for two reasons. First, the model outperforms previously applied regression models in out-of-sample prediction precision. Second, we extend the sample of estimated housing wealth by including cooperative units, non-id apartments, and cabins.

• Hull, Isaiah (2020)
  COVID-19 in real time: A collaborative approach from central banks, academia, and the private sector

  [Popular Science Article]. Vox EU,

• Zhanhui, Chen; Ehling, Paul & Xiouros, Costas (2020)
  Risk Aversion Sensitive Real Business Cycles

  Management science, Doi: https://doi.org/10.1287/mnsc.2019.3561

• Hull, Isaiah (2020)
  Machine Learning for Economics and Finance in TensorFlow 2: Deep Learning Models for Research and Industry

  [Textbook]. Springer Nature

• Juelsrud, Ragnar Enger & Wold, Ella Getz (2020)
  Risk-weighted capital requirements and portfolio rebalancing

  Journal of Financial Intermediation, Doi: https://doi.org/10.1016/j.jfi.2018.10.002

• Hull, Isaiah; Bertsch, Christoph & Zhang, Xin (2020)
  Bank misconduct and online lending

  Journal of Banking & Finance, Doi: https://doi.org/10.1016/j.jbankfin.2020.105822

• Hull, Isaiah; Bertsch, Christoph, Armelius, Hanna & Zhang, Xin (2020)
  Spread the Word: International Spillovers from Central Bank Communication

  Journal of International Money and Finance, Doi: https://doi.org/10.1016/j.jimonfin.2019.102116

• Hull, Isaiah & Grodecka, Anna (2020)
  Röstar svenskarna med fötterna?

  [Popular Science Article]. Ekonomisk Debatt,

• Gavazzoni, Federico & Santacreu, Ana Maria (2020)
  International R&D Spillovers and Asset Prices

  Journal of Financial Economics, 136(2) Doi: https://doi.org/10.1016/j.jfineco.2019.09.009

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  We study the international propagation of long-run risk in the context of a general equilibrium model with endogenous growth. Innovation and international diffusion of technologies are the channels at the core of our mechanism. A calibrated version of the model matches several asset pricing and macroeconomic quantity moments, alleviating some of the puzzles highlighted in the international macro-finance literature. Our model predicts that country pairs that share more research and development (R&D) have less volatile exchange rates and more correlated stock market returns. Using data from a sample of 19 developed countries, we provide suggestive empirical evidence in favor of our model’s predictions.

• Zhanhui, Chen; Cooper, Ilan, Ehling, Paul & Xiouros, Costas (2020)
  Risk Aversion Sensitive Real Business Cycles

  Management science, 67(4) Doi: https://doi.org/10.1287/mnsc.2019.3561 - Full text in research archive

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  Technology choice allows for substitution of production across states of nature and depends on state-dependent risk aversion. In equilibrium, endogenous technology choice can counter a persistent negative productivity shock with an increase in investment. An increase in risk aversion intensifies transformation across states, which directly leads to higher investment volatility. In our model and the data, the conditional volatility of investment correlates negatively with the price-dividend ratio and predicts excess stock market returns. In addition, the same mechanism generates predictability of consumption growth and produces fluctuations in the risk-free rate

• Cooper, Ilan; Mitrache, Andreea & Priestley, Richard (2020)
  A Global Macroeconomic Risk Model for Value, Momentum, and Other Asset Classes

  Journal of Financial and Quantitative Analysis, 57(1) Doi: https://doi.org/10.1017/S0022109020000824 - Full text in research archive

  Show summary

  Value and momentum returns and combinations of them across both countries and asset classes are explained by their loadings on global macroeconomic risk factors. These loadings describe why value and momentum have positive return premia, although being negatively correlated. The global macroeconomic risk factors also perform well in capturing the returns on other characteristic-based portfolios. The findings identify a global macroeconomic source of the common variation in returns across countries and asset classes.

• Bjønnes, Geir Høidal; Osler, Carol L. & Rime, Dagfinn (2020)
  Price Discovery in Two-Tier Markets

  International Journal of Finance and Economics, Doi: https://doi.org/10.1002/ijfe.1953

  Show summary

  This paper examines the price discovery process in a two-tier market, specifically the foreign-exchange market. The goal is to identify the sources of private information and to gain insights into the process through which that informa- tion influences the market price. Using a transactions database that includes trading-party identities, we show that sustained post-trade returns rise with bank size, implying that larger banks have an information advantage. The larger banks exploit this information advantage in placing limit orders as well as market orders. We also show that the bank's private information does not come from their corporate or government customers or from some asset managers. Instead, the bank's private information appears to come from other asset managers, including hedge funds, and from the bank's own analysis

• Natvik, Gisle James; Rime, Dagfinn & Syrstad, Olav (2020)
  Does publication of interest rate paths provide guidance?

  Journal of International Money and Finance, Doi: https://doi.org/10.1016/j.jimonfin.2019.102123

• Natvik, Gisle James; Rime, Dagfinn & Syrstad, Olav (2020)
  Does publication of interest rate paths provide guidance?

  Journal of International Money and Finance, 103(May) , s. 1-22. Doi: https://doi.org/10.1016/j.jimonfin.2019.102123 - Full text in research archive

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  Does the central bank practice of publishing interest rate projections (IRPs) improve how market participants map new information into future interest rates? Using high-frequency data on forward rate agreements (FRAs) we compute market forecast errors; differences between expected future interest rates and ex-post realizations. We assess their change in narrow windows around monetary policy announcements and macroeconomic releases in Norway and Sweden. Overall, communication of future policy plans does not improve markets’ response to information, irrespective of whether or not IRPs are in place. A decomposition of market reactions into responses to the current monetary policy action (“target”) and responses to signals about the future (“path”), reveals that only policy actions lead to improvements in market forecasts.

• Branger, Nicole; Konermann, Patrick, Meinerding, Christoph & Schlag, Christian (2020)
  Equilibrium Asset Pricing in Directed Networks

  Review of Finance, 25(3) , s. 777-818. Doi: https://doi.org/10.1093/rof/rfaa035 - Full text in research archive

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  Directed links in cash flow networks affect the cross-section of risk premia through three channels. In a tractable consumption-based equilibrium asset pricing model, we obtain closed-form solutions that disentangle these channels for arbitrary directed networks. First, shocks that can propagate through the economy command a higher market price of risk. Second, shock-receiving assets earn an extra premium since their valuation ratios drop upon shocks in connected assets. Third, a hedge effect pushes risk premia down: when a shock propagates through the economy, an asset that is unconnected becomes relatively more attractive and its valuation ratio increases.

• Ostergaard, Charlotte; Sasson, Amir & Sørensen, Bent E. (2020)
  Cash flow sensitivities and bank-finance shocks in non-listed firms

  International Journal of Banking, Accounting and Finance, 11(1) , s. 35-70. Doi: https://doi.org/10.1504/IJBAAF.2020.104483 - Full text in research archive

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  We study how small firms manage cash flows by estimating cash flow sensitivities for all sources and uses of cash. Our data are Norwegian non-listed firms which can be matched to the banks they borrow from. Firms with low cash holdings mainly use external finance to offset cash flow fluctuations over the cycle, whereas firms with high cash holdings rely mainly on internal finance. Estimating how cash flow sensitivities change with exogenous bank shocks, we find that the cyclicality of cash-poor firms' investment is amplified because they do not substitute internal for external finance. Our results imply that for small firms, the transmission of financial shocks to the real economy is closely tied to their accumulation of cash.

• Fabozzi, Frank J.; Klingler, Sven, Mølgaard, Pia & Nielsen, Mads Stenbo (2020)
  Active Loan Trading

  Journal of Financial Intermediation, 46(April) Doi: https://doi.org/10.1016/j.jfi.2020.100868 - Full text in research archive

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  The increased disruption of business models through digital technologies creates opportunities and challenges for retail businesses and their network partners. Digital transformation – the process of digitalization of previously analogue operations,procedures, organizational tasks, and managerial processes in order to drive value for customers, employees and other stakeholders – is the order of the day. With that in mind, this article provides a purposeful overview of research in the field of digital transformation with a focus on retailing and customer- facing functions of digital technologies such as managing customer journeys, assessing the impact of sensory marketing and the use of service robots on the one hand, and their strategic implications for business models such as servitization on the other. This article concludes by highlighting immediate as well as long-term challenges in the field, with a focus on disruptive technologies, innovations and trends that retail marketing-management will likely face in the near future.

• Hull, Isaiah; Sattath, Or, Diamanti, Eleni & Wendin, Göran (2020)
  Quantum technology for economists

  arXiv.org, Doi: https://doi.org/10.48550/arXiv.2012.04473

• Fagereng, Andreas; Guiso, Luigi, Malacrino, Davide & Pistaferri, Luigi (2020)
  Heterogeneity and Persistence in Returns to Wealth

  Econometrica, 88(1) , s. 115-170. Doi: https://doi.org/10.3982/ECTA14835 - Full text in research archive

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  We provide a systematic analysis of the properties of individual returns to wealth using twelve years of population data from Norway’s administrative tax records. We document a number of novel results. First, individuals earn markedly different average returns on their net worth (a standard deviation of 22.1%) and on its components. Second, heterogeneity in returns does not arise merely from differences in the allocation of wealth between safe and risky assets: returns are heterogeneous even within narrow asset classes. Third, returns are positively correlated with wealth: moving from the 10th to the 90th percentile of the net worth distribution increases the return by 18 percentage points (and 10 percentage points if looking at net-of-tax returns). Fourth, individual wealth returns exhibit substantial persistence over time. We argue that while this persistence partly arises from stable differences in risk exposure and assets scale, it also reflects heterogeneity in sophistication and financial information, as well as entrepreneurial talent. Finally, wealth returns are correlated across generations. We discuss the implications of these findings for several strands of the wealth inequality debate.

• Vaagan, Robert Wallace; Staubo, Siv Jønland & Lerdahl, Erik (2020)
  Sakkyndig komitévurdering (konfidensiell) av opprykksøknad til førstelektor ved Høyskolen Kristiania

  [Report Research]. Høyskolen Kristiania

• Holm, Martin Blomhoff; Fagereng, Andreas, Guiso, Luigi & Pistaferri, Luigi (2020)
  K-returns to Education

  [Professional Article]. Centre for Economic Policy Research. Discussion papers,

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  We exploit a school reform that increased the length of compulsory schooling in Norway in the 1960s to study the causal effect of formal general education on returns on wealth (k-returns). OLS estimates reveal a strong, positive and statistically significant correlation between education and returns on individual net worth. This effect disappears in IV regressions, implying that general education has no causal effect on individual performance in capital markets, whose heterogeneity largely reflects non-acquired ability. On the contrary, we find that education causes higher returns in the labor market (l-returns). We speculate about possible rationales for this important asymmetry.

• Hull, Isaiah (2019)
  A Note on Measuring US Time Series Volatility During the Great Moderation

  Macroeconomic Dynamics, Doi: https://doi.org/10.1017/S1365100519000592

• Xiouros, Costas; Ehling, Paul, Cooper, Ilan & Zhanhui, Chen (2019)
  Risk Aversion Sensitive Real Business Cycles

  [Report Research]. BI Center of Asset Pricing Research

• Hull, Isaiah & Grodecka, Anna (2019)
  Measuring the Impact of Taxes and Public Services on Property Values: A Double Machine Learning Approach

  arXiv.org, Doi: https://doi.org/10.48550/arXiv.2203.14751

• Berzins, Janis; Bøhren, Øyvind & Stacescu, Bogdan (2019)
  Dividends and taxes: The moderating role of agency conflicts

  Journal of Corporate Finance, 58(October) , s. 583-604. Doi: https://doi.org/10.1016/j.jcorpfin.2019.07.003 - Full text in research archive

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  We find that potential conflicts between majority and minority shareholders strongly influence how dividends respond to taxes. When the controlling shareholder has a smaller stake, the incentives to extract private benefits are stronger – a shareholder conflict that can be mitigated by dividend payout. We study a large and clean regulatory shock in Norway that increases the dividend tax rate for all individuals from 0% to 28%. We find that dividends drop less the higher the potential shareholder conflict, suggesting that dividend policy trades off tax and agency considerations. The average payout ratio falls by 30 percentage points when the conflict potential is low, but by only 18 points when it is high. These lower dividends cannot be explained by higher salaries to shareholders or diverse liquidity needs. We also observe a strong increase in indirect ownership of high-conflict firms through tax-exempt holding companies and suggest policy implications for intercorporate dividend taxation.

• Fagereng, Andreas; Holm, Martin Blomhoff, Moll, Benjamin & Natvik, Gisle James (2019)
  Saving Behavior Across the Wealth Distribution: The Importance of Capital Gains

  [Report Research]. NBER Working paper

• Cooper, Ilan & Maio, Paulo (2019)
  Asset Growth, Profitability, and Investment Opportunities

  Management science, 65(9) , s. 3988-4010. Doi: https://doi.org/10.1287/mnsc.2018.3036 - Full text in research archive

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  We show that recent prominent equity factor models are to a large degreecompatible with the Intertemporal CAPM (ICAPM) framework. Factors associated withalternative profitability measures forecast the equity premium in a way that is consistentwith the ICAPM. Several factors based on firms’ asset growth predict a significant declinein stock market volatility, thus being consistent with their positive prices of risk. Theinvestment-based factors are also strong predictors of an improvement in future economicactivity. The time-series predictive ability of most equity state variables is not subsumedby traditional ICAPM state variables. Importantly, factors that earn larger risk prices tendto be associated with state variables that are more correlated with future investmentopportunities or economic activity. Moreover, these risk price estimates can be reconciledwith plausible risk-aversion parameter estimates. Overall, the ICAPM can be used as acommon theoretical background for recent multifactor models.

• Chalak, Karim & Kim, Daniel (2019)
  Measurement Error Without the Proxy Exclusion Restriction

  Journal of business & economic statistics, Doi: https://doi.org/10.1080/07350015.2019.1617156 - Full text in research archive

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  This article studies the identification of the coefficients in a linear equation when data on the outcome, covariates, and an error-laden proxy for a latent variable are available. We maintain that the measurement error in the proxy is classical and relax the assumption that the proxy is excluded from the outcome equation. This enables the proxy to directly affect the outcome and allows for differential measurement error. Without the proxy exclusion restriction, we first show that the effects of the latent variable, the proxy, and the covariates are not identified. We then derive the sharp identification regions for these effects under any configuration of three auxiliary assumptions. The first weakens the assumption of no measurement error by imposing an upper bound on the noise-to-signal ratio. The second imposes an upper bound on the outcome equation coefficient of determination that would obtain had there been no measurement error. The third weakens the proxy exclusion restriction by specifying whether the latent variable and its proxy affect the outcome in the same or the opposite direction, if at all. Using the College Scorecard aggregate data, we illustrate our framework by studying the financial returns to college selectivity and characteristics and student characteristics when the average SAT score at an institution may directly affect earnings and serves as a proxy for the average ability of the student cohort.

• Bøhren, Øyvind; Stacescu, Bogdan, Almli, Line & Søndergaard, Kathrine (2019)
  When Does the Family Govern the Family Firm?

  Journal of Financial and Quantitative Analysis, 54(5) , s. 2085-2117. Doi: https://doi.org/10.1017/S0022109018001102 - Full text in research archive

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  We find that the controlling family holds both the chief executive officer and chair positions in 79% of Norwegian family firms. The family holds more governance positions when it owns large stakes in small, profitable, low-risk firms. This result suggests that the family trades off expected costs and benefits by conditioning participation intensity on observable firm characteristics. We find that the positive effect of performance on participation is twice as strong as the positive effect of participation on performance. The endogeneity of participation, therefore, should be carefully accounted for when analyzing the effect of family governance on the family firm’s behavior.

• Klingler, Sven & Sundaresan, Suresh M. (2019)
  An Explanation of Negative Swap Spreads: Demand for Duration from Underfunded Pension Plans

  Journal of Finance, 74(2) , s. 675-710. Doi: https://doi.org/10.1111/jofi.12750 - Full text in research archive

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  The 30‐year U.S. swap spreads have been negative since September 2008. We offer a novel explanation for this persistent anomaly. Through an illustrative model, we show that underfunded pension plans optimally use swaps for duration hedging. Combined with dealer banks' balance sheet constraints, this demand can drive swap spreads to become negative. Empirically, we construct a measure of the aggregate funding status of defined benefit pension plans and show that this measure helps explain 30‐year swap spreads. We find a similar link between pension funds' underfunding and swap spreads for two other regions.

• Chalak, Karim & Kim, Daniel (2019)
  Measurement error in multiple equations: Tobin’s q and corporate investment, saving, and debt

  Journal of Econometrics, Doi: https://doi.org/10.1016/j.jeconom.2019.08.001 - Full text in research archive

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  We characterize the sharp identification regions for the coefficients in a system of linear equations that share an explanatory variable measured with classical error. We demonstrate the identification gain from analyzing the equations jointly. We derive the sharp identification regions under any configuration of three auxiliary assumptions. These restrict the “noise-to-signal” ratio, the coefficients of determination, and the signs of the correlations among the cross-equation disturbances. For inference, we implement results on intersection bounds. The application studies the effects of cash flow on the investment, saving, and debt of firms when Tobin’s q serves as a proxy for marginal q.

• Bjønnes, Geir Høidal; Rime, Dagfinn & Solheim, Haakon (2019)
  The impact of different players on the volume-volatility relation in the foreign exchange market

  Beta – Scandinavian Journal of Business Research, 33(1) , s. 43-60. Doi: https://doi.org/10.18261/issn.1504-3134-2019-01-04 - Full text in research archive

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  We examine the volume-volatility relation in the foreign exchange (FX) market using a unique data set from the Swedish krona (SEK) market that contains observations of 90–95 percent of all transactions from 1995 until 2002. We show that the strength of the volume-volatility relation depends on the group of market participants trading. Financial trading volume has the highest correlation with volatility. Interbank trading between the largest Market-making banks is also positively correlated with volatility, while trading among Other market-making banks show no correlation with volatility. Trading by Non-Financial customers is not correlated with volatility at all when controlling for trading by other market participants. Interestingly, we show that (unexpected) spot volume and changes in net positions (spot and forward) by Financial customers Granger cause spot volume and changes in net positions by Non-Financial customers. Our results clearly show that market participants in the FX market are heterogeneous, suggesting that differences in trading strategies and information may explain the volume-volatility relation.

• Evans, Martin D. D. & Rime, Dagfinn (2019)
  Microstructure of Foreign Exchange Markets

  Oxford Research Encyclopedias: Economics and Finance, Doi: https://doi.org/10.1093/acrefore/9780190625979.013.318

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  An overview of research on the microstructure of foreign exchange (FX) markets is presented. We begin by summarizing the institutional features of FX trading and describe how they have evolved since the 1980s. We then explain how these features are represented in microstructure models of FX trading. Next, we describe the links between microstructure and traditional macro exchange-rate models and summarize how these links have been explored in recent empirical research. Finally, we provide a microstructure perspective on two recent areas of interest in exchange-rate economics: the behavior of returns on currency portfolios, and questions of competition and regulation.

• Atanasov, Victoria; Møller, Stig & Priestley, Richard (2019)
  Consumption Fluctuations and Expected Returns

  Journal of Finance, 75, s. 1-37. Doi: https://doi.org/10.1111/jofi.12870 - Full text in research archive

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  This paper introduces a novel consumption‐based variable, cyclical consumption, and examines its predictive properties for stock returns. Future expected stock returns are high (low) when aggregate consumption falls (rises) relative to its trend and marginal utility from current consumption is high (low). We show that the empirical evidence ties consumption decisions of agents to time variation in returns in a manner consistent with asset pricing models based on external habit formation. The predictive power of cyclical consumption is not confined to bad times and subsumes the predictability of many popular forecasting variables.

• Branger, Nicole; Konermann, Patrick & Schlag, Christian (2019)
  Optimists and Pessimists in (In)Complete Markets

  Journal of Financial and Quantitative Analysis, 55(8) , s. 2466-2499. Doi: https://doi.org/10.1017/S002210901900070X - Full text in research archive

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  We study the effects of market incompleteness on speculation, investor survival, and asset pricing moments, when investors disagree about the likelihood of jumps and have recursive preferences. We consider two models. In a model with jumps in aggregate consumption, incompleteness barely matters, since the consumption claim resembles an insurance product against jump risk and effectively reproduces approximate spanning. In a long-run risk model with jumps in the long-run growth rate, market incompleteness affects speculation, and investor survival. Jump and diffusive risks are more balanced regarding their importance and, therefore, the consumption claim cannot reproduce approximate spanning.

• Zheng, Zeqi; Gao, Yuandong, Yin, Likang & Rabarison, Monika K (2019)
  Modeling and analysis of a stock-based collaborative filtering algorithm for the Chinese stock market

  Expert Systems With Applications, Doi: https://doi.org/10.1016/j.eswa.2019.113006

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  Under the assumption of transmission effect presence between the movement of stocks in the Chinese stock market, we employ collaborative filtering, a new technique used by recommender systems, to construct a stock prediction algorithm. We find that, when put into a quantitative investment strategy, this algorithm leads to strong profitability with an average annualized return of 11.42%. Furthermore, our analysis of the transmission effect among industry indexes indicates that the information flows move along the industrial chain. Our results reveal the significant roles that the traditional industries such as banking, automobile, and real estate, play in the Chinese economy.

• Gerard, Bruno (2019)
  ESG and Socially Responsible Investment: A Critical Review

  Beta – Scandinavian Journal of Business Research, 33(1) , s. 61-83. Doi: https://doi.org/10.18261/issn.1504-3134-2019-01-05 - Full text in research archive

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  We review the literature on ESG and Socially Responsible Investment with a special focus on fixed-income investments. Most of the academic research is focused on the link between corporate CSR and ESG activities, investors’ SR engagement and stock returns and firm value. Very few studies examine the link between firm ESG policies and bond prices, risks and returns, and the performance of SR FI funds. The studies linking CSR to firm value suggest that higher CSR leads to higher corporate value, higher equity returns, and lower risk, enhancing the general collateral value of the firm. The FI income studies provide mixed evidence about the link between issuer ESG scores and bond prices and return characteristics: the bonds of issuers with both excellent and very poor ESG behavior tend to underperform the bonds of issuers with neither very strong nor very poor ESG scores. Lastly, while issuers’ ESG excellence may have led to both their equity and debt outperforming those of poorer ESG issuers in the 1990s, this out-performance halved in the first part of the 2000s and completely disappeared after the financial crisis. Markets seem now to largely price ESG performance into equity and bond prices.

• Bøhren, Øyvind; Berzins, Janis & Stacescu, Bogdan (2018)
  The Family Firm Premium and Family Characteristics: Evidence from Population Data

  [Report Research]. BI Norwegian Business School

• Hull, Isaiah; Olovsson, Conny, Walentin, Karl & Westermark, Andreas (2018)
  Manufacturing decline reduces house price volatility

  [Popular Science Article]. Vox EU,

• Berzins, Janis; Bøhren, Øyvind & Stacescu, Bogdan (2018)
  The under-researched family firm: New insights from unique Norwegian data

  At the Forefront, Looking Ahead: Research-Based Answers to Contemporary Uncertainties of Management, , s. 99-118. Doi: https://doi.org/10.18261/9788215031583-2018-08

• Berzins, Janis; Bøhren, Øyvind & Stacescu, Bogdan (2018)
  Dividends and taxes: The moderating role of agency conflicts

  [Report Research]. BI Norwegian Business School

• Berzins, Janis; Bøhren, Øyvind & Stacescu, Bogdan (2018)
  Illiquid shareholders and real firm effects: The personal wealth tax and financial constraints

  [Report Research]. BI Norwegian Business School

• Berzins, Janis; Bøhren, Øyvind & Stacescu, Bogdan (2018)
  The Governance and Finance of Norwegian Family Firms: Main Characteristics of the Population

  [Report Research]. Handelshøyskolen BI

• Berzins, Janis; Bøhren, Øyvind & Stacescu, Bogdan (2018)
  Shareholder conflicts and dividends

  Review of Finance, 22(5) , s. 1807-1840. Doi: https://doi.org/10.1093/rof/rfx046 - Full text in research archive

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  We examine how dividend policy is used to mitigate potential conflicts of interest between majority and minority shareholders in private Norwegian firms. The average payout is 50% higher if the majority shareholder’s equity stake is 55% (high conflict potential) rather than 95% (low conflict potential). Such minority-friendly payout is also associated with higher subsequent minority shareholder investment. These results suggest that controlling shareholders voluntarily use dividends to reduce agency conflicts and build trust, rather than opportunistically preferring private benefits to dividends. We show that our results are unlikely to arise from liquidity or signaling motives.

• Bjønnes, Geir Høidal & Kathitziotis, Neophytos (2018)
  Hva koster det å kjøpe og selge valuta? :

  Praktisk Økonomi & Finans, 34(3) , s. 239-254. Doi: https://doi.org/10.18261/issn.1504-2871-2018-03-07 - Full text in research archive

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  Selv om valutamarkedet er verdens største finansmarked, og ofte brukes som skolebokeksempelet på et marked med «perfekt konkurranse», finner vi at markedsmakt og prisdiskriminering spiller en betydelig rolle. Bankene prisdiskriminerer kundene sine basert på tilgjengelig informasjon. Dette er mulig fordi banken kjenner kundens identitet før den stiller kjøps- og salgskurser. Kunder med god innsikt i hvordan markedet fungerer kan kjøpe og selge valuta til en svært lav kostnad. Tilsvarende oppnår kunder som handler ofte en volumrabatt. Resultatene tilsier at kundene i valutamarkedet, for eksempel import- og eksportbedrifter, kan spare penger ved å vise innsikt i markedet. Dette kan de for eksempel gjøre gjennom å skaffe tilgang til bankens elektroniske handleplattform, og ved å anvende handleplattformer der bankene må konkurrere om kundene.

• Cooper, Ilan & Maio, Paulo (2018)
  New Evidence on Conditional Factor Models

  Journal of Financial and Quantitative Analysis, Doi: https://doi.org/10.1017/S0022109018001606 - Full text in research archive

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  We estimate conditional multifactor models over a large cross section of stock returns matching 25 CAPM anomalies. Using conditioning information associated with different instruments improves the performance of the Hou, Xue, and Zhang (HXZ) (2015) and Fama and French (FF) (2015), (2016) models. The largest increase in performance holds for momentum, investment, and intangibles-based anomalies. Yet, there are significant differences in the performance of scaled models: HXZ clearly dominates FF in explaining momentum and profitability anomalies, while the converse holds for value–growth anomalies. Thus, the asset pricing implications of alternative investment and profitability factors (in a conditional setting) differ in a nontrivial way.

• Klingler, Sven & Lando, David (2018)
  Safe Haven CDS Premiums

  The Review of financial studies, 31(5) , s. 1856-1895. Doi: https://doi.org/10.1093/rfs/hhy021 - Full text in research archive

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  Credit default swaps can be used to lower the capital requirements of dealer banks entering into uncollateralized derivatives positions with sovereigns. We show in a model that the regulatory incentive to obtain capital relief makes CDS contracts valuable to dealer banks and empirically that, consistent with the use of CDS for regulatory purposes, there is a disconnect between changes in bond yield spreads and in CDS premiums, especially for safe sovereigns. Additional empirical tests related to the volume of contracts outstanding, effects of regulatory proxies, and the corporate bond and CDS markets support that CDS contracts are used for capital relief.

• Cooley, Thomas F. & Henriksen, Espen (2018)
  The Demographic Deficit

  Journal of Monetary Economics, 93, s. 45-62. Doi: https://doi.org/10.1016/j.jmoneco.2017.11.005 - Full text in research archive

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  There has been a slowdown in growth in the world’s most advanced economies. In this paper we argue that changing demographics, in particular aging populations combined with increased life expectancy, may be part of the explanation for why we observe slower growth, falling interest rates and falling productivity growth. Using Japan and the U.S. in the years prior to the financial crises as a case study, we provide estimates of the growth deficit that arises from an aging cohort structure and increasing life expectancy. We also provide projections of the impact of predictable demographic changes on future growth in the U.S. and Japan.

• Berg, Magnus; Bøhren, Øyvind & Vassnes, Erik (2018)
  Modeling the response to exogenous shocks: The capital uplift rate in petroleum taxation

  Energy Economics, 69, s. 442-455. Doi: https://doi.org/10.1016/j.eneco.2017.12.010 - Full text in research archive

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  We show how a recent drop in the Norwegian capital uplift rate by two percentage points changes optimal field design and reduces field value for shareholders. Although optimal design changes considerably and value drops by 12%, the ability to reoptimize design after the shock is worth only 1.5% of field value. This evidence suggests that large behavioral effects of a shock do not necessarily imply large value effects, making it less important to always account for the taxpayers' response. The valuation error in such cases may be moderate if one instead uses the simplifying and widespread assumption of unresponsive taxpayers.

• Colacito, Riccardo; Croce, Mariano Massimiliano, Gavazzoni, Federico & Ready, Robert (2018)
  Currency Risk Factors in a Recursive Multi-Country Economy

  Journal of Finance, 73(6) Doi: https://doi.org/10.1111/jofi.12720

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  Focusing on the 10 most traded currencies, we provide empirical evidence regarding a significant heterogeneous exposure to global growth news shocks. We incorporate this empirical fact in a frictionless risk-sharing model with recursive preferences, multiple countries, and multiple consumption goods whose supply features both global and local short- and long-run shocks. Since news shocks are priced, heterogeneous exposure to long-lasting global growth shocks results in a relevant reallocation of international resources and currency adjustments. Our unified framework replicates the properties of the HML-FX and HML-NFA carry-trade strategies studied by Lustig, Roussanov, and Verdelhan and Della Corte, Riddiough, and Sarno.

• Jørgensen, Kjell; Skjeltorp, Johannes A. & Ødegaard, Bernt Arne (2018)
  Throttling hyperactive robots - Order to Trade Ratios at the Oslo Stock Exchange

  Journal of financial markets, 37(1) , s. 1-16. Doi: https://doi.org/10.1016/j.finmar.2017.09.001 - Full text in research archive

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  We investigate the effects of introducing a fee on excessive order-to-trade ratios (OTRs) on market quality at the Oslo Stock Exchange (OSE). We find that traders reacted to the regulation as measured OTRs fell. However, market quality, measured with depth, spreads, and realized volatility, remain largely unaffected. This result differs sharply from the experience in other markets, such as Italy and Canada, where similar regulatory changes have been accompanied by a worsening of liquidity. The unchanged market quality at the OSE is likely due to the different design of the regulation, which is tailored to encourage liquidity supply.

• Andreou, Panayiotis; Cooper, Ilan, Lopez, Ignacio Garcia de Olalla & Louca, Christodoulos (2018)
  Managerial Overconfidence and the Buyback Anomaly

  Journal of Empirical Finance, 49, s. 142-156. Doi: https://doi.org/10.1016/j.jempfin.2018.09.005 - Full text in research archive

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  While positive, long-run abnormal returns following share repurchase announcements are substantially lower when CEOs are overconfident. This effect is particularly strong for (i) difficult to value firms, such as small, young, non-dividend paying, distressed, and having negative earnings firms, (ii) firms with poor past stock return performance and high book-to-market ratio, indicators of possible overreaction to bad news, and (iii) financially constrained firms. Overall, these results are consistent with the mispricing hypothesis as a motive for repurchases and as an explanation for the buyback anomaly. Additionally, irrespective of the CEO’s level of confidence, abnormal returns are considerably larger for financially constrained firms, implying their managers require larger undervaluation due to the higher cost of capital.

• Ehling, Paul; Gallmeyer, Michael, Heyerdahl-Larsen, Christian & Illeditsch, Philipp (2018)
  Disagreement about Inflation and the Yield Curve

  Journal of Financial Economics, 127(3) , s. 459-484. Doi: https://doi.org/10.1016/j.jfineco.2018.01.001

• Solberg, Harry Arne; Becker, Denis, Denstadli, Jon Martin, Heldal, Frode, Knardal, Per Ståle & Thøring, Thor Atle (2018)
  Sykkel-VM 2017. Fra folkefest til økonomisk bakrus.

  [Report Research]. NTNU: Center for Sport and Culture Management Research

• Støme, Linn Nathalie; Pripp, Are Hugo, Kværner, Jens Sørlie & Kvaerner, Kari Jorunn (2018)
  Acceptability, usability and utility of a personalized application in promoting behavioral change in osteoarthritis patients: A feasibility study in Norway.

  BMJ Open, Doi: https://doi.org/10.1136/bmjopen-2018-021608 - Full text in research archive

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  AbstrACt Objective The dynamic and interactive mobile application Vett was designed to help change behaviour and is based on cognitive, motivational and visual techniques. Our aim is to investigate the acceptability, usability and utility of Vett as a personalised application for goal achievement. setting The trial took place at the rheumatology clinic at Diakonhjemmet Hospital, Oslo, Norway from January to June 2015. Participants Twelve participants with osteoarthritis were recruited from a 3.5-hour multidisciplinary group-based educational programme (osteoarthritis school). Interventions With the help of a physician, each participant followed a customised 12-week mixed-mode goal achievement plan with digital support based on preset goals, self-monitoring and individual feedback. Acceptability was measured as the perceived degree of goal achievement using a validated habit questionnaire scaled from 0 to 100. Utility and usability were assessed via 10 weekly questions and adherence by fulfilment of predetermined tasks. results Mean goal achievement was 73 (95% CI 68 to 78), an increase of 22 (95% Cl 17 to 26, p<0.01), which equals 48% improvement (95% CI 32% to 59%). Mean user satisfaction was 81 (95% CI 76 to 85), and technical usability was 80 (95% CI 75 to 84), which both increased during the study period. Conclusion The high levels of acceptability, usability and utility support the feasibility of the pers

• Adams, Renee Birgit; Keloharju, Matti & Knüpfer, Samuli (2018)
  Are CEOs born leaders? Lessons from traits of a million individuals

  Journal of Financial Economics, 130(2) , s. 392-408. Doi: https://doi.org/10.1016/j.jfineco.2018.07.006 - Full text in research archive

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  What makes a successful CEO? We combine a near-exhaustive sample of male CEOs from Swedish companies with data on their cognitive and noncognitive ability and height at age 18. CEOs differ from other high-skill professions most in noncognitive ability. The median large-company CEO belongs to the top 5% of the population in the combination of the three traits. The traits have a monotonic and close to linear relation with CEO pay, but their correlations with pay, firm size, and CEO fixed effects in firm policies are relatively low. Traits appear necessary but not sufficient for making it to the top.

• Berzins, Janis; Bøhren, Øyvind & Stacescu, Bogdan (2017)
  Shareholder Conflicts and Dividends

  [Professional Article]. Harvard Law School Forum on Corporate Governance and Financial Regulation,

• Xiouros, Costas (2017)
  Trading and Asset Prices

  Social Science Research Network (SSRN), Doi: https://doi.org/10.2139/ssrn.2833783

• Hull, Isaiah (2017)
  Amortization requirements and household indebtedness: An application to Swedish-style mortgages

  European Economic Review, Doi: https://doi.org/10.1016/j.euroecorev.2016.09.011

• Hull, Isaiah; Armelius, Hanna & Köhler, Hanna Stenbacka (2017)
  The timing of uncertainty shocks in a small open economy

  Economics Letters, Doi: https://doi.org/10.1016/j.econlet.2017.03.016

• Bukhvalova, Barbara A. (2017)
  Mutual Fund Managers: Real or Make-Belief Performance

  Russian Management Journal, 15(2) , s. 163-172. Doi: https://doi.org/10.21638/11701/spbu18.2017.202

• Farbrot, Audun & Bøhren, Øyvind (2017)
  Majoritetseiere beskytter minoriteten

  [Popular Science Article]. BI Business Review,

• Bøhren, Øyvind; Michalsen, Dag & Norli, Øyvind (2017)
  Finans: Teori og praksis

  [Textbook]. Fagbokforlaget

• Knüpfer, Samuli; Rantapuska, Elias & Matti, Sarvimäki (2017)
  Formative Experiences and Portfolio Choice: Evidence from the Finnish Great Depression

  Journal of Finance, 72(1) , s. 133-166. Doi: https://doi.org/10.1111/jofi.12469

• Ehling, Paul; Graniero, Alessandro & Heyerdahl-Larsen, Christian (2017)
  Asset prices and portfolio choice with learning from experience

  Review of Economic Studies, 85(3) , s. 1752-1780. Doi: https://doi.org/10.1093/restud/rdx077 - Full text in research archive

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  We study asset prices and portfolio choice with overlapping generations, where the young disregard history to learn from own experience. Disregarding history implies less precise estimates of output growth, which in equilibrium leads the young to increase their investment in risky assets after positive returns, that is, they act as trend chasers. In equilibrium, the risk premium decreases after a positive shock and, therefore, trend chasing young agents lose wealth relative to old agents who behave as contrarians. Consistent with findings from survey data, the average belief about the risk premium in the economy relates negatively to future excess returns and is smoother than the true risk premium.

• Ehling, Paul & Heyerdahl-Larsen, Christian (2017)
  Correlations

  Management science, 63(6) , s. 1919-1937. Doi: https://doi.org/10.1287/mnsc.2015.2413

• Boustanifar, Hamid; Grant, Everett & Reshef, Ariell (2017)
  Wages and Human Capital in Finance: International Evidence, 1970-2011

  Review of Finance, 22(2) , s. 699-745. Doi: https://doi.org/10.1093/rof/rfx011 - Full text in research archive

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  We study the allocation and compensation of human capital in the finance industry in a set of developed economies in 1970–2011. Finance relative wages generally increase—but not in all countries, and to varying degrees. Trading-related activities account for 50% of the increases, despite accounting for only 13% of finance employment, on average. Financial deregulation is the most important factor driving up wages in finance; it has a larger effect in environments where informational rents and socially inefficient risk taking are likely to be prevalent. Differential investment in information and communication technology does not have causal explanatory power. High finance wages attract skilled international immigration to finance, raising concerns for “brain drain.”

• Dittmann, Ingolf; Yu, Ko-chia & Zhang, Dan (2017)
  How Important Are Risk-Taking Incentives in Executive Compensation?

  Review of Finance, 21(5) , s. 1805-1846. Doi: https://doi.org/10.1093/rof/rfx019

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  We consider a model in which shareholders provide a risk-averse CEO with risk-taking incentives in addition to effort incentives. We show that the optimal contract protects the CEO from losses for bad outcomes and is convex for medium outcomes and concave for good outcomes. We calibrate the model to data on 1,707 CEOs and show that it explains observed contracts much better than the standard model without risk-taking incentives. When we apply the model to contracts that consist of base salary, stock, and options, the results suggest that options should be issued in the money. Our model also helps us rationalize the universal use of at-the-money options when the tax code is taken into account. Moreover, we propose a new way of measuring risk-taking incentives in which the expected value added to the firm is traded off against the additional risk a CEO has to bear.

• Zhang, Dan (2017)
  CEO Dividend Protection

  Journal of Empirical Finance, 45, s. 194-211. Doi: https://doi.org/10.1016/j.jempfin.2017.10.005 - Full text in research archive

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  This paper studies CEO dividend protection, an important element in the executive compensation package that protect CEOs’ compensation from stock price drops due to dividend payments. First, I show that there is large variation among S&P 500 firms in whether they provide dividend protections to their CEOs or not. Second, CEO dividend protection is positively associated with firms’ dividend payout. Third, a time series analysis suggests that dividend protection is implemented prior to a firm increasing dividends. Finally, there is no evidence suggesting that CEO dividend protection affects other corporate policies, such as cash holdings and investment.

• Ehling, Paul; Gallmeyer, Michael, Srivastava, Sanjay, Tompaidis, Stathis & Yang, Chunyu (2017)
  Portfolio Tax Trading with Carryover Losses

  Management science, 64(9) , s. 4157-4176. Doi: https://doi.org/10.1287/mnsc.2017.2733 - Full text in research archive

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  We study portfolio choice with multiple stocks and capital gain taxation assuming that capital losses can only offset current or future realized capital gains. We show, through backtesting using empirical distributions, that optimal equity holdings over an extended period are significantly lower on average than benchmark holdings suggested in the literature. Using Value and Growth or Small and Large portfolios, the backtests show that allocations remain persistently under-diversified. Carry-over losses have large economic significance since they can dramatically shrink the no-trade region. Finally, the backtested economic cost of incorrectly modeling capital losses is at least 8 percent of lifetime wealth.

• Hull, Isaiah (2016)
  The development and spread of financial innovations

  Quantitative Economics, Doi: https://doi.org/10.3982/QE521

• Graniero, Alessandro (2016)
  Information Precision, Confidence Risk and the Macroeconomy

  [Report Research]. Handelshøyskolen BI

• Graniero, Alessandro; Ehling, Paul & Heyerdahl-Larsen, Christian (2016)
  Asset Prices and Portfolio Choice with Learning from Experience

  [Report Research]. Handelshøyskolen BI

• Bøhren, Øyvind & Staubo, Siv Jønland (2016)
  Mandatory Gender Balance and Board Independence

  European Financial Management, 22(1) , s. 3-30. Doi: https://doi.org/10.1111/eufm.12060

• Cooper, Ilan & Priestley, Richard (2016)
  The expected returns and valuations of private and public firms

  Journal of Financial Economics, 120(1) , s. 41-57. Doi: https://doi.org/10.1016/j.jfineco.2016.01.023

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  Characteristics play a similar role in describing returns in private rms as in public rms. This evidence suggests a causal e¤ect of optimal investment underlying the role of characteristics, as private rms do not have stock prices to over- or under-react on. Common factor models largely describe the cross section of investment returns of both types of rms, suggesting that the common factors are likely aggregate risk factors. Finally, the cost of capital and rm valuations are similar across private and public rms

• Xiouros, Costas (2016)
  Handling of the Laiki Bank ELA and the Cyprus Bail-In Package

  The Cyprus Bail-in. Policy Lessons from the Cyprus Economic Crisis, , s. 33-102. Doi: https://doi.org/10.1142/9781783268764_0003

• Evans, Martin D.D. & Rime, Dagfinn (2016)
  Order flow information and spot rate dynamics

  Journal of International Money and Finance, 69(Dec.) , s. 45-68. Doi: https://doi.org/10.1016/j.jimonfin.2016.06.018

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  This paper examines why order flows are empirically important drivers of spot exchange rate dynamics. We consider a decomposition for the depreciation rate that must hold in any model and show that order flows will appear as important proximate drivers when they convey significant incremental information about future interest rate di↵erentials, risk premiums and/or long-run exchange rate levels (i.e., information that cannot be inferred from publicly observed variables). We estimate the importance of these incremental information flows for the EURNOK spot exchange rate using eight years of highquality, disaggregated, end-user order flow data collected by the Norges Bank.

• Bøhren, Øyvind & Gjærum, Per Ivar (2016)
  Finans: Innføring i investering og finansiering

  [Textbook]. Fagbokforlaget

• Kaustia, Markku; Knüpfer, Samuli & Torstila, Samuli (2016)
  Stock ownership and political behavior: Evidence from demutualizations

  Management science, 62(4) , s. 945-963. Doi: https://doi.org/10.1287/mnsc.2014.2135

• Ostergaard, Charlotte; Schindele, Ibolya & Vale, Bent (2016)
  Social Capital and the Viability of Stakeholder-Oriented Firms: Evidence from Savings Banks

  Review of Finance, 20(5) , s. 1673-1718. Doi: https://doi.org/10.1093/rof/rfv047

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  We show that social capital improves the viability of stakeholder-oriented rms operating in competitive markets. Studying exits from the population of Norwegian savings banks after deregulations, we nd that banks located in communities with high social capital have a higher probability of survival, but no similar e ect exists for commercial banks. Norwegian savings banks are collectively governed by their stakeholders and we provide evidence that social capital improves the e ciency of stakeholder governance. In high social capital areas, banks raise more deposits locally, distribute more of their surplus for altruistic purposes, and operate more locally-focused branch networks.

• Breedon, Francis; Rime, Dagfinn & Vitale, Paolo (2016)
  Carry Trades, Order Flow and the Forward Bias Puzzle

  Journal of Money, Credit and Banking, 48(6) , s. 1113-1134. Doi: https://doi.org/10.1111/jmcb.12328

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  We investigate the relation between foreign exchange (FX) order flow and the forward bias. We outline a decomposition of the forward bias according to which a negative correlation between interest rate differentials and order flow creates a time‐varying risk premium consistent with that bias. Using 10 years of data on FX order flow, we find that more than half of the forward bias is accounted for by order flow—with the rest being explained by expectational errors. We also find that carry trading increases currency‐crash risk in that order flow generates negative skewness in FX returns.

• Gomez, Juan Pedro; Priestley, Richard & Zapatero, Fernando (2016)
  Labor Income, Relative Wealth Concerns and the Cross Section of Stock Returns

  Journal of Financial and Quantitative Analysis, 51(4) , s. 1111-1133. Doi: https://doi.org/10.1017/S002210901600048X

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  The finance literature documents a relation between labor income and the cross-section of stock returns. One possible explanation for this is the hedg-ing decisions of investors with relative wealth concerns. This implies a negative risk premium associated with stock returns correlated with local undiversi able wealth, since investors are willing to pay more for stocks that help their hedging goals. We nd evidence that is consistent with these regularities. In addition, we show that the e ect varies across geographic areas depending on the size and variability of undiversi able wealth, proxied by labor income.

• Grinblatt, Mark; Ikäheimo, Seppo, Keloharju, Matti & Knüpfer, Samuli (2016)
  IQ and mutual fund choice

  Management science, 62(4) , s. 924-944. Doi: https://doi.org/10.1287/mnsc.2015.2166

• Saakvitne, Jo Albertsen & Bjønnes, Geir Høidal (2015)
  Hva skjer med det nordiske kraftderivatmarkedet om aktørene ikke får stille sikkerhet gjennom bankgarantier?

  Magma forskning og viten, 8, s. 39-48.

• Hull, Isaiah (2015)
  Approximate dynamic programming with post-decision states as a solution method for dynamic economic models

  Journal of Economic Dynamics and Control, Doi: https://doi.org/10.1016/j.jedc.2015.03.008

• Almli, Line; Bøhren, Øyvind, Stacescu, Bogdan & Søndergaard, Kathrine (2015)
  When does the family govern the family firm?

  [Report Research]. Handelshøyskolen BI

• Hull, Isaiah (2015)
  The macro-financial implications of house price-indexed mortgage contracts

  Economics Letters, Doi: https://doi.org/10.1016/j.econlet.2014.12.033

• Gerard, Bruno & Eiling, Esther (2015)
  Emerging Equity Markets Comovements: Trends and Macroeconomics Fundamentals

  Review of Finance, 19(4) , s. 1543-1585. Doi: https://doi.org/10.1093/rof/rfu036

• Bukhvalova, Barbara A. & Bukhvalova, Vera (2015)
  MyOpenMath: From Random Problem Generation to Complete Online Course Support

  Kompûternye instrumenty v obrazovanii, 2015(2) , s. 49-62.

• Ehling, Paul & Heyerdahl-Larsen, Christian (2015)
  Complete and incomplete financial markets in multi-good economies

  Journal of Economic Theory, 160, s. 438-462. Doi: https://doi.org/10.1016/j.jet.2015.10.006

• Norli, Øyvind; Ostergaard, Charlotte & Schindele, Ibolya (2015)
  Liquidity and Shareholder Activism

  The Review of financial studies, 28(2) , s. 486-520. Doi: https://doi.org/10.1093/rfs/hhu070

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  Blockholders' incentives to intervene in corporate governance are weakened by free-rider problems and high costs of activism. Theory suggests activists may recoup expenses through informed trading of target rms' stock when stocks are liquid. We show that stock liquidity increases the probability of activism but does less so for potentially overvalued rms for which privately informed blockholders may have greater incentives to sell their stake than to intervene. We also document that activists accumulate more stocks in targets when stock is more liquid. We conclude that liquidity helps overcome the free-rider problem and induces activism via preactivism accumulation of target rms' shares. (JEL G14, G34)

• Bøhren, Øyvind; Iancu, Diana, Radulescu, Georgiana & Strøm, R. Øystein (2015)
  The ownership structure of private firms

  [Report Research]. Handelshøyskolen BI

• Fratzscher, Marcel; Rime, Dagfinn, Sarno, Lucio & Zinna, Gabriele (2015)
  The scapegoat theory of exchange rates: The first tests

  Journal of Monetary Economics, 70, s. 1-21. Doi: https://doi.org/10.1016/j.jmoneco.2014.09.001

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  The scapegoat theory of exchange rates (Bacchetta and van Wincoop, 2004, Bacchetta and van Wincoop, 2013) suggests that market participants may attach excessive weight to individual economic fundamentals, which are picked as “scapegoats” to rationalize observed currency fluctuations at times when exchange rates are driven by unobservable shocks. Using novel survey data that directly measure foreign exchange scapegoats for 12 exchange rates, we find empirical evidence that supports the scapegoat theory. The resulting models explain a large fraction of the variation and directional changes in exchange rates in sample, although their out-of-sample forecasting performance is mixed.

• Fagereng, Andreas; Mogstad, Magne & Rønning, Marte (2015)
  Why do wealthy parents have wealthy children?

  [Report Research]. Statistisk sentralbyrå (SSB)

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  Strong intergenerational correlations in wealth have fueled a long-standing debate over why children of wealthy parents tend to be well off themselves. We investigate the role of family background in determining children's wealth accumulation and investor behavior as adults. Our research design allows us to credibly control for genetic differences in abilities and preferences and to identify the effects of exogenous changes in specific dimensions of family background. The analysis is made possible by linking Korean-born children who were adopted at infancy by Norwegian parents to a population panel data set with detailed information on disaggregated wealth portfolios and socioeconomic characteristics. The mechanism by which these Korean-Norwegian adoptees were assigned to adoptive families is known and effectively random. We use the quasi-random assignment to estimate the causal effects from an adoptee being raised in one type of family versus another. Our findings show that family background matters significantly for children's accumulation of wealth and investor behavior as adults, even when removing the genetic connection between children and the parents raising them. In particular, adoptees raised by wealthy parents are more likely to be well off themselves, whereas adoptees' stock market participation and portfolio risk are increasing in the financial risk taking of their adoptive parents. These intergenerational causal links are not driven primarily by inter vivos transfers or bequests. The detailed nature of our data allows us to explore other mechanisms, assess the generalizability of the lessons from adoptees, and compare our findings to results from behavioral genetics decompositions.

• Miglietta, Salvatore (2014)
  Incentives and Relative Wealth Concerns

  Quarterly Journal of Finance, 4(4) Doi: https://doi.org/10.1142/S201013921450013X

• Yang, Chunyu & Tompaidis, Stathis (2014)
  Pricing American-style options by Monte Carlo simulation: alternatives to ordinary least squares

  Journal of Computational Finance, 18(1) , s. 121-143. Doi: https://doi.org/10.21314/jcf.2014.279

• Boustanifar, Hamid (2014)
  Finance and employment: Evidence from U.S. banking reforms

  Journal of Banking & Finance, 46(Sept) , s. 343-354. Doi: https://doi.org/10.1016/j.jbankfin.2014.06.006

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  Economic theory offers competing hypotheses about how the cost and availability of finance influence labor market outcomes. Making use of the U.S. banking reforms between the 1970s and the 1990s as a quasi-natural experiment, this paper studies the impact of credit market development on employment. This paper documents the significant effects of these reforms on employment growth. Potential channels between finance and employment are also investigated. Changes in the growth of the number of self-employed individuals, the entry and exit of firms, and investment growth do not explain most of the employment growth following the reforms. The reforms had a substantially higher impact in industries with higher labor intensity, which is consistent with the idea that labor has fixed costs that need to be financed.

• Boustanifar, Hamid (2014)
  Information acquisition, foreign bank entry, and credit allocation

  Quarterly Review of Economics and Finance, 54(3) , s. 324-336. Doi: https://doi.org/10.1016/j.qref.2014.04.008

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  This paper presents a theoretical framework to understand the impact of foreign bank entry on the access to and the price of credit for different types of firms. A major point of departure from the previous literature is that incumbents’ information about firms is endogenous in the model; previous screenings and lending relations of incumbents determine which type(s) of firms they can identify. I show that incumbents’ information is negatively correlated with the quality of borrowers. Moreover, although a priori entrants have a comparative advantage in lending to transparent firms, previous lending relations of incumbents might reverse this relation. In particular, given that transparent firms are the only type screened before the entry and therefore they are the only type distinguishable by incumbents, entrants might have a comparative advantage in lending to opaque firms. The analysis provides new insights into the inconclusive evidence of the literature regarding entrants’ credit allocation.

• Boustanifar, Hamid (2014)
  Bank Deregulation and Relative Wages in Finance

  Applied Economics Letters, 21(2) , s. 69-74. Doi: https://doi.org/10.1080/13504851.2013.829180

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  Rising wages in the finance industry has been a source of debate and are usually liked to financial deregulations. Exploiting the cross-state and over-time variation in the timing of US bank deregulations, this paper investigates the causal impact of each type of deregulation on the relative wages in the finance industry. I document that relative wages in finance began to rise in the early 1980s in almost all states including those that deregulated before 1970 and those that deregulated in the 1990s. Consistently, after controlling for aggregate macro shocks that affected all states, there is no evidence that relative finance wages increased more following any type of deregulation. If anything, I find a negative impact of bank branching deregulation on relative wages in finance. These results together with those found in Philippon and Reshef (2012) call for a better understanding of the dynamics of wages in the finance industry.

• Bøhren, Øyvind (2014)
  Økonomiske særtrekk ved stiftelser

  Nordisk Tidsskrift for Selskabsret, (3) , s. 1-14.

• Backus, David K.; Cooley, Thomas F. & Henriksen, Espen (2014)
  Demography and low-frequency capital flows

  Journal of International Economics, 92 Doi: https://doi.org/10.1016/j.jinteco.2014.01.006

• Berzins, Janis; Bøhren, Øyvind & Stacescu, Bogdan (2014)
  Stockholder conflicts and dividends

  [Report Research]. Working paper; CCGR

• Berzins, Janis; Bøhren, Øyvind & Stacescu, Bogdan (2014)
  Dividends, taxes, and agency costs

  [Report Research]. Working paper, CCGR

• Bøhren, Øyvind & Staubo, Siv Jønland (2014)
  Does mandatory gender balance work? Changing organizational form to avoid board upheaval

  Journal of Corporate Finance, 28, s. 152-168. Doi: https://doi.org/10.1016/j.jcorpfin.2013.12.005

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  Norway is the first, and so far the only, country to mandate a minimum fraction of female and male directors on corporate boards. We find that after a new gender balance law surprisingly stipulated that the firm must be liquidated unless at least 40% of its directors are of each gender, half the firms exit to an organizational form not exposed to the law. This response suggests that forced gender balance is costly. The costs are also firm-specific, because exit is more common when the firm is non-listed, successful, small, young, has powerful owners, no dominating family owner, and few female directors. These characteristics reflect high costs of involuntary board restructuring and low costs of abandoning the exposed organizational form. Correspondingly, certain unexposed firms hesitate to become exposed. Overall, we find that mandatory gender balance may produce firms with inefficient organizational forms or inefficient boards.

• Bøhren, Øyvind; Hoseth, Fredrik & Remøy, Håvard (2014)
  Lønnsomhet i næringsklynger

  Samfunnsøkonomen, (3) , s. 14-23.

• Karapetyan, Artashes & Stacescu, Bogdan (2014)
  Does information sharing reduce the role of collateral as a screening device?

  Journal of Banking & Finance, 43(1) , s. 48-57. Doi: https://doi.org/10.1016/j.jbankfin.2014.02.010 - Full text in research archive

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  Information sharing and collateral are both devices that help banks reduce the cost of adverse selection. We examine whether they are likely to be used as substitutes (information sharing reduces the need for collateral) or complements. We show that information sharing via a credit bureaus and registers may increase, rather than decrease, the role of collateral: it can be required in loans to high-risk borrowers in cases when it is not in the absence of information sharing. Higher adverse selection makes the use of collateral more likely both with and without information sharing. Our results are in line with recent empirical evidence.

• Ostergaard, Charlotte; Norli, Øyvind & Schindele, Ibolya (2014)
  Liquidity and Shareholder Activism

  [Professional Article]. Harvard Law School Forum on Corporate Governance and Financial Regulation,

• Cheung, Yin-Wong & Rime, Dagfinn (2014)
  The Offshore Renminbi Exchange Rate: Microstructure and Links to the Onshore Market

  Journal of International Money and Finance, 49, s. 170-189. Doi: https://doi.org/10.1016/j.jimonfin.2014.05.012 - Full text in research archive

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  The offshore renminbi (CNH) exchange rate is the exchange rate of the Chinese currency transacted outside China. We study the CNH exchange rate dynamics and its links with onshore exchange rates. Using a specialized microstructure dataset, we find that CNH is significantly affected by its order flow and limit-order imbalance. The offshore CNH exchange rate has an increasing impact on the onshore rate, and significant predictive power for the official RMB central parity rate. The CNH order flow also affects the onshore RMB exchange rate and the central parity rate. The interactions between variables are likely to be time-varying.

• Jørgensen, Kjell; Skjeltorp, Johannes A. & Ødegaard, Bernt A (2014)
  Throttling hyperactive robots - Message to trade ratios at the Oslo Stock Exchange

  [Professional Article]. UiS Working Papers in Economics and Finance,

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  We use the introduction of a cost on high message to trade ratios for traders at the Oslo Stock Exchange to investigate the effects on market quality and fragmentation of introduction of such ``speed bumps'' to equity trading. The exchange introduced a fee payable by market participants whose orders (messages to the exchange's trade system) exceeded seventy times the number of consummated trades. Market participants quickly adjusted their behavior to avoid paying the extra cost. The overall ratios of messages to trades fell, but common measures of the quality of trading, such as liquidity, transaction costs, and realized volatility, did not deteriorate, they were essentially unchanged. This is a policy intervention where we can match the treated sample (OSE listed stocks) with the same assets traded elsewhere. We can therefore do a ``diff in diff'' analysis of liquidity in Oslo compared with liquidity of the same asset traded on other exchanges. Surprisingly, we see that liquidity, as measured by the spread, deteriorated on alternative market places when the tax was introduced, a tax that is only valid for trading at the OSE. The spread is the only liquidity measure for which we observe this difference between the OSE and other markets, for depth and turnover we do not find any differences between other markets and the OSE.

• Cappiello, Lorenzo; Gerard, Bruno, Kadareja, Arjan & Manganelli, Simone (2014)
  Measuring comovements by regression quantiles

  Journal of Financial Econometrics, 12(4) , s. 645-678. Doi: https://doi.org/10.1093/jjfinec/nbu009

• Bjønnes, Geir Høidal; Holden, Steinar, Rime, Dagfinn & Solheim, Haakon O. Aa (2014)
  'Large' vs. 'Small' Players: A Closer Look at the Dynamics of Speculative Attacks

  The Scandinavian Journal of Economics, 116(2) , s. 506-538. Doi: https://doi.org/10.1111/sjoe.12044 - Full text in research archive

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  What is the role of “large players” (e.g., hedge funds) in speculative attacks? Recent work suggests that large players move early to induce smaller agents to attack. However, many observers argue that large players move late in order to benefit from interest-rate differentials. We propose a model in which large players can do both. Using data on currency trading by foreign (large) and local (small) players, we find that foreign players moved last in three attacks on the Norwegian krone during the 1990s. During the attack on the Swedish krona after the Russian moratorium in 1998, foreign players moved early. Gains by delaying attack were small, however, because interest rates did not increase.

• Berzins, Janis & Bøhren, Øyvind (2013)
  Norske familiebedrifter - Omfang, eierstyring og lønnsomhet

  Praktisk Økonomi & Finans, 29(3) , s. 57-75.

• Henriksen, Espen; Kydland, Finn E. & Sustek, Roman (2013)
  Globally Correlated Nominal Fluctuations

  Journal of Monetary Economics, 60(6) , s. 613-631. Doi: https://doi.org/10.1016/j.jmoneco.2013.05.006

• Bøhren, Øyvind & Josefsen, Morten (2013)
  Stakeholder rights and economic performance: The profitability of nonprofits

  Journal of Banking & Finance, 37(11) , s. 4073-4086. Doi: https://doi.org/10.1016/j.jbankfin.2013.07.021

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  This paper explores whether ownership matters in a fundamental sense by comparing the performance of stockholder-owned firms with the much less analyzed nonprofit firms. No stakeholder has residual cash flow rights in nonprofit firms, and the control rights are held by customers, employees, and community citizens. Accounting for differences in size and risk and comparing only firms in the same industry, we find that stockholder-owned firms do not outperform nonprofit firms. This result is consistent with the notin that the monitoring function of stockholders may be successfully replaced by other mechanisms. We find evidence that product market competition may play this role as a substitute monitoring mechanism.

• Cooper, Ilan & Priestley, Richard (2013)
  The World Business Cycle and Expected Returns

  Review of Finance, 17(3) , s. 1029-1064. Doi: https://doi.org/10.1093/rof/rfs014

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  We study the predictability of stock returns using a pure macroeconomic mea- sure of the world business cycle, namely the world's capital to output ratio. This variable tracks variation in expected stock returns in a group of the major industrial economies in the presence of world nancial market based predictor variables. The world's capi- tal to output ratio exhibits strong out-of-sample predictive power in almost all countries studied. This is in contrast to nancial market based variables that almost never have out-of-sample forecasting power. Using the stock return predictability that we uncover, we nd that international versions of conditional asset pricing models perform well. The world capital to output ratio also predicts bond returns, interest rate changes and credit spreads. The results highlight the importance of world business conditions for nancial markets.

• Karapetyan, Artashes & Stacescu, Bogdan (2013)
  Information Sharing and Information Acquisition in Credit Markets

  Review of Finance, 18(4) , s. 1583-1615. Doi: https://doi.org/10.1093/rof/rft031 - Full text in research archive

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  We examine the effect of information sharing via credit bureaus or credit registers on banks’ incentives to collect information about their borrowers. Information asymmetries have been identified as an important source of bank profits, and sharing knowledge about borrowers can reduce those rents. Despite that, we show that banks’ incentives to collect information actually increase in the presence of information sharing. The reason is that when hard, standardized information is shared, banks’ incentives to invest in soft, nonverifiable information increase. The result can be more accurate lending decisions and improved welfare

• Bukhvalova, Barbara A. & Bukhvalova, Vera V. (2013)
  AWK AS A TOOL FOR PROCESSING ECONOMIC DATA

  Kompûternye instrumenty v obrazovanii, 2013(3) , s. 9-19.

• Bøhren, Øyvind & Krosvik, Nils Erik (2013)
  The economics of minority freezeouts: Evidence from the courtroom

  International Review of Law and Economics, 36(1) , s. 48-58. Doi: https://doi.org/10.1016/j.irle.2013.04.007

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  We analyze minority freezeout offers in a legal environment where minority stockholders can reject the offer and ask the court to value their nontendered stock. This regulatory setting allows us to observe the disciplining effect of legal enforcement on stockholder behavior. We find that minority stockholders reject about one out of ten freezeout offers, and that rejection is more likely when the bidder has controlled the firm for quite some time before the offer. Rejected offers take on average around three years to be settled in court, and litigation costs are almost never paid by minority stockholders. The court mostly prices rejected offers above the offer price, particularly when the firm is private, when the bidder has controlled the firm for an extensive period before the offer, and when the case is large. These findings suggest that minority stockholders consider most freezeout offers commensurate with the level of legal stockholder protection as enforced by the courts. The majority stockholder tends to underestimate the legal protection of minority rights in settings where these rights are particularly vulnerable to exploitation. Nevertheless, minority stockholders who take their case to court often face years of waiting, and for a highly unpredictable litigation return.

• Roche, Hervé; Tompaidis, Stathis & Yang, Chunyu (2013)
  Why does junior put all his eggs in one basket? A potential rational explanation for holding concentrated portfolios

  Journal of Financial Economics, 109(3) , s. 775-796. Doi: https://doi.org/10.1016/j.jfineco.2013.03.016 - Full text in research archive

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  Empirical studies of household portfolios show that young households, with little financial wealth, hold underdiversified portfolios that are concentrated in a small number of assets, a fact often attributed to behavioral biases. We present a potential rational alternative: we show that investors with little financial wealth, who receive labor income, rationally limit the number of assets they invest in when faced with financial constraints such as margin requirements and restrictions on borrowing. We provide theoretical and numerical support for our results and identify the ratio of financial wealth to labor income as a useful control variable for household portfolio studies.

• Berzins, Janis; Trzcinka, Charles & Liu, Crocker (2013)
  Asset management and investment banking

  Journal of Financial Economics, 110(1) , s. 215-231. Doi: https://doi.org/10.1016/j.jfineco.2013.05.001

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  We find evidence that conflicts of interest are pervasive in the asset management business owned by investment banks. Using data from 1990 to 2008, we compare the alphas of mutual funds, hedge funds, and institutional funds operated by investment banks and non-bank conglomerates. We find that, while no difference exists in performance by fund type, being owned by an investment bank reduces alphas by 46 basis points per year in our baseline model. Making lead loans increases alphas, but the dispersion of fees across portfolios decreases alphas. The economic loss is $4.9 billion per year.

• Bøhren, Øyvind & Staubo, Siv Jønland (2012)
  Changing organizational form to avoid regulatory constraints: The effect of mandatory gender balance in the boardroom

  [Report Research]. Norwegian Business School

• Korsvold, Pål E. & Høidal, Geir Bjønnes (2012)
  Oppgaver og løsninger

  [Textbook]. Cappelen Damm Akademisk

• Bøhren, Øyvind & Staubo, Siv Jønland (2012)
  Female directors and board independence: Evidence from boards with mandatory gender balance

  [Report Research]. Norwegian Business School

• Bøhren, Øyvind & Michalsen, Dag (2012)
  Finansiell økonomi. Teori og praksis

  [Textbook]. Fagbokforlaget

• Korsvold, Pål E. & Høidal, Geir Bjønnes (2012)
  Finansiell Risikostyring

  Cappelen Damm Akademisk

• Garrett, I. & Priestley, Richard (2012)
  Dividend Growth, Cash Flow and Discount Rate News

  Journal of Financial and Quantitative Analysis, 47(5) , s. 1003-1028. Doi: https://doi.org/10.1017/S0022109012000427

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  The relative predictability of returns and dividends is a central issue since it forms the paradigm to interpret asset price variation. A little studied question is how dividend smoothing, as a choice of corporate policy, affects predictability. We show that, even if dividends are supposed to be predictable without smoothing, dividend smoothing can bury this predictability. Since aggregate dividends are dramatically more smoothed in the postwar period than before, the lack of dividend growth predictability in the postwar period does not necessarily mean that there is no cash flow news in stock price variations; rather, a more plausible interpretation is that dividends are smoothed. Using two alternative measures that are less subject to dividend smoothing -- net payout and earnings -- we reach the consistent conclusion that cash flow news plays a more important role than discount rate news in price variations in the postwar period.

• Garcia, Diego & Norli, Øyvind (2012)
  Crawling EDGAR

  The Spanish Review of Financial Economics (SRFE), 10(1) , s. 1-10. Doi: https://doi.org/10.1016/j.srfe.2012.04.001

  Show summary

  While our kids may think this paper is about spiders, it is, unfortunately, about rms in the United States reporting relevant business information to the Securities and Exchange Commission (SEC). The paper is meant to serve as a primer for economists in the computing details of searching for information in the Internet. One important goal of the paper is to show how simple open-source computer scripts can be generated to access nancial data on rms that interact with regulators in the United States.

• Garcia, Diego & Norli, Øyvind (2012)
  Geographic dispersion and stock returns

  Journal of Financial Economics, 106(3) , s. 547-565. Doi: https://doi.org/10.1016/j.jfineco.2012.06.007

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  This paper shows that stocks of truly local firms have returns that exceed the return on stocks of geographically dispersed firms by 70 basis points per month. By extracting state name counts from annual reports filed with the Securities and Exchange Commission (SEC) on Form 10-K, we distinguish firms with business operations in only a few states from firms with operations in multiple states. Our findings are consistent with the view that lower investor recognition for local firms results in higher stock returns to compensate investors for insufficient diversification.

• Eiling, Esther; Gerard, Bruno & Roon, Frans de (2012)
  Euro-zone equity returns: country versus industry effects

  Review of Finance, 16(3) , s. 755-798. Doi: https://doi.org/10.1093/rof/rfq034

• Bøhren, Øyvind; Josefsen, Morten & Steen, Pål Erik (2012)
  Stakeholder conflicts and dividend policy

  Journal of Banking & Finance, 36(10) , s. 2852-2864. Doi: https://doi.org/10.1016/j.jbankfin.2012.06.007

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  This paper compares the dividend policy of owner-controlled firms with that of firms where the owners are a minority relative to non-owner employees, customers, and community citizens. We find that regardless of whether owners or non-owners control the firm, the strong stakeholder uses the dividend payout decision to mitigate rather than to intensify the conflict of interest with the weak stakeholder. Hence, the higher the potential agency cost as reflected in the firm’s stakeholder structure, the more the actual agency cost is reduced by the strong stakeholder’s dividend payout decision. These findings are consistent with a dividend policy in which opportunistic power abuse in stakeholder conflicts is discouraged by costly consequences for the abuser at a later stage. Indirect evidence supports this interpretation.

• Bøhren, Øyvind & Gjærum, Per Ivar (2012)
  Bok og nettside som integrert læreverk

  Magma forskning og viten, 15(3) , s. 63-72. - Full text in research archive

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  Denne artikkelen bruker et konkret pedagogisk prosjekt i finans til å vise hvordan ønsket om undervisning med relevans og mangfold kan avleire seg i et læreverk. Vår nøkkel er å utvikle bok og nettside i tidsmessig parallell snarere enn i sekvens, ha klar arbeidsdeling og sømløs overgang mellom de to komponentene, og å gjøre nettsiden spesielt bred og dyp. I artikkelen konsentrerer vi oss om nettsiden og beskriver hvordan hensynet til relevans og mangfold ivaretas gjennom aktiv bruk av medieoppslag, skreddersydde regneark, integrert stikkordliste, spillbaserte øvingsoppgaver, kalkulator- og regnearkhjelp, lydfiler for MP3-spiller og tilbud om forelesermateriale. Vår erfaring tyder på at integrerte læreverk er krevende å utvikle og på kort sikt ulønnsomme for både forfatter og forlag. I et lengre perspektiv tror vi teknologidrevet konkurransepress vil favorisere dem som utnytter at teknologi med høyt pedagogisk potensial nå er lett tilgjengelig for forfatter, forlag, foreleser og student. Uansett står produsenter og brukere av læremidler overfor store utfordringer.

• Chen, Long; Da, Zhi & Priestley, Richard (2012)
  Dividend Smoothing and Predictability

  Management science, 58(10) , s. 1834-1853. Doi: https://doi.org/10.1287/mnsc.1120.1528

  Show summary

  The relative predictability of returns and dividends is a central issue since it forms the paradigm to interpret asset price variation. A little studied question is how dividend smoothing, as a choice of corporate policy, a ects predictability. We show that, even if dividends are supposed to be predictable without smoothing, dividend smoothing can bury this predictability. Since aggregate dividends are dramatically more smoothed in the postwar period than before, the lack of dividend growth predictability in the postwar period does not necessarily mean that there is no cash ow news in stock price variations; rather, a more plausible interpretation is that dividends are smoothed. Using two alternative measures that are less subject to dividend smoothing {net payout and earnings { we reach the consistent conclusion that cash ow news plays a more important role than discount rate news in price variations in the postwar period.

• Eiling, Esther; Gerard, Bruno, Hillion, Pierre & Roon, Frans de (2012)
  International portfolio diversification: Currency, industry and country effects revisited

  Journal of International Money and Finance, 31(5) , s. 1249-1278. Doi: https://doi.org/10.1016/j.jimonfin.2012.01.015

  Show summary

  We examine the relative importance of country, industry, world market and currency risk factors for international stock returns. Our approach focuses on testing the mean-variance efficiency of the various factor portfolios. An unconditional analysis does not detect significant differences between country, industry and world portfolios, nor any role for currency risk factors. However, when we allow expected returns, volatilities and correlations to vary over time, we find that equity returns are mainly driven by global industry and currency risk factors. We propose a novel test to evaluate the relative benefits of alternative investment strategies and find that including currencies is critical to take full advantage of the diversification benefits afforded by international markets.

• Agarwal, Vikas; Gómez, Juan-Pedro & Priestley, Richard (2012)
  Management compensation and market timing under portfolio constraints

  Journal of Economic Dynamics and Control, 36(10) , s. 1600-1625. Doi: https://doi.org/10.1016/j.jedc.2012.05.006

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  This paper shows that portfolio constraints have important implications for manage- ment compensation and performance evaluation. In particular, in the presence of portfolio constraints, allowing for benchmarking can be bene cial. Benchmark design arises as an al- ternative e¤ort inducement mechanism vis-a-vis relaxing portfolio constraints. Numerically, we solve jointly for the manager s linear incentive fee and the optimal benchmark. The size of the incentive fee and the risk adjustment in the benchmark composition are increasing in the investor s risk tolerance and the manager s ability to acquire and process private information.

• Bøhren, Øyvind (2011)
  Kompakt og intens. Erfaringer fra en skriveprosess

  Prosa - tidsskrift for skribenter, 17(3) , s. 63-72.

• Norli, Øyvind & Fjesme, Sturla Lyngnes (2011)
  Initial Public Offering or Initial Private Placement?

  [Report Research]. Handelshøyskolen BI

  Show summary

  This paper studies the choice between an auction and a negotiation when selling a large fraction of a company. Using detailed data on ownership structure in 123 public offerings and 88 negotiated private placements, we show that negotiated private placements are much more common when there are significant private benefits of control. This finding supports the idea that a negotiated transaction allow the seller to extract more of the gains from trade when the gains from trade include private benefits.

• Berzins, Janis; Bøhren, Øyvind & Stacescu, Bogdan (2011)
  Stockholder Conflicts and Dividend Payout

  [Report Research]. Handelshøyskolen BI

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  This paper examines how dividend policy influences conflicts of interest between majority and minority stockholders in a large sample of private firms with controlling blockholders. We find that a higher potential for stockholder conflicts is associated with higher payout. This tendency is stronger when the minority stockholder structure is diffuse and when the minority is not on the firm’s board. Minority-friendly payout is also associated with higher subsequent minority investment in the firm. These findings are consistent with the notion that dividend policy is used to mitigate agency costs, particularly when this benefits the majority in the longer run.

• Norli, Øyvind (2011)
  Praktisk Bruk av Kapitalverdimodellen

  [Professional Article]. Praktisk Økonomi & Finans, 27(2) , s. 15-21.

• Østergaard, Charlotte; Vale, Bent & Schindele, Ibolya (2011)
  "Social kapital kan påvirke norske sparebankers evne til å overleve"

  [Professional Article]. Sparebankbladet, 2, s. 32-35.

• Bøhren, Øyvind (2011)
  Eierne, styret og ledelsen: Corporate governance i Norge

  Fagbokforlaget

• Ehling, Paul & Haushalter, David (2011)
  When does cash matter? Evidence from private corporations

  [Report Research]. Handelshøyskolen BI

• King, Michael R. & Rime, Dagfinn (2011)
  Algorithmic Trading and FX Market Liquidity

  [Professional Article]. CFA Magazine, 22(3) , s. 15-17. Doi: https://doi.org/10.2469/cfm.v22.n3.5

• Nygaard, Knut (2011)
  Forced Board Changes: Evidence from Norway

  [Report Research]. Norges Handelshøyskole

• Bøhren, Øyvind; Josefsen, Morten & Steen, Pål Erik (2011)
  Dividends and stakeholder conflicts: A cleaner test

  [Report Research]. BI Norwegian Business School

• Bøhren, Øyvind & Krosvik, Nils Erik (2011)
  The economics of minority freezeouts: Evidence from the courtroom

  [Report Research]. BI Norwegian Business School

• Berzins, Janis; Bøhren, Øyvind & Stacescu, Leon Bogdan (2011)
  Dividends and stockholder conflicts: A comprehensive test for private firms

  [Report Research]. BI Norwegian Business School

• Østergaard, Charlotte & Smith, David C. (2011)
  Corporate Governance Before There Was Corporate Law

  [Report Research]. Handelshøyskolen BI

  Show summary

  We study 79 sets of bylaw provisions adopted by Norwegian corporations in a free contracting environment before Norway got its first corporate law. The firms in our sample are publicly traded companies in the period 1900-1910. We document substantial protections to minority shareholders against expropriation by insiders and observe considerable heterogeneity in the investor protections stipulated in the contracts with regards to board structure, director responsibilities and remuneration, disclosure of company information, and shareholder voting rights, among others. We find that firms seem to self-select bylaw protections and show that firms with dispersed control structures tend to operate with protections reflecting collective action and free-rider problems, whereas tightly controlled firms have bylaws in place that reflect the relatively sophistication of investors. We also find evidence that dividends and investor protections are substitutes, and that firms in high growth industries and firms that issue equity disclose more information to investors. We conclude that effective governance systems may develop independently of statutory corporate law.

• Cooper, Ilan & Priestley, Richard (2011)
  Real Investment and Risk Dynamics

  Journal of Financial Economics, 101(1) , s. 182-205. Doi: https://doi.org/10.1016/j.jfineco.2011.02.002

  Show summary

  The spread in average returns between low and high asset growth and investment portfolios is largely accounted for by their spread in systematic risk, as measured by the Chen, Roll and Ross (1986) factors. In addition, systematic risk and volatility fall sharply during large investment periods. Consistent with the predictions of both the q-theory and real options models, the systematic risk spread and fall in risk and volatility are largest for high q rms. Moreover, investment and asset growth factors can predict economic growth. Our evidence implies that much of negative investment (asset growth)-future returns relationship can be explained by rational pricing.

• Bukhvalova, Barbara A. & Bukhvalov, Alexander (2011)
  Effects of Monitoring Costs on Real Options Analysis

  Russian Management Journal, 9(4) , s. 3-34.

• Østergaard, Charlotte; Sasson, Amir & Sørensen, Bent E. (2011)
  The Marginal Value of Cash, Cash Flow Sensitivities, and Bank-Finance Shocks in Non-Listed Firms

  [Report Research]. Handelshøyskolen BI

  Show summary

  We study how nonlisted firms trade off financial, real, and distributive uses of cash. We show that firms' marginal value of cash (MVC) affects the mix of external and internal finance used to absorb fluctuations in cash flows; in particular, high-MVC firms employ substantially more external finance on the margin. Linking firms to their main bank, we find that shocks to bank finance affect firms' trade-offs and have real effects in high-MVC firms, making investment more sensitive to firm cash ow. Our analysis suggests that shocks to external financing costs are transmitted to the real economy via firms' marginal value of cash.

• Bukhvalova, Barbara A. & Bukhvalov, Alexander (2011)
  The principal role of the board of directors: the duty to say “no”

  Corporate Governance : The international journal of business in society, 11(5) , s. 629-640. Doi: https://doi.org/10.1108/14720701111177028

• Nygaard, Knut; Tungodden, Bertil, Cappelen, Alexander Wright & Sørensen, Erik Øiolf (2011)
  Social Preferences in the Lab: A Comparison of Students and a Representative Population

  CESifo Working Papers, (3511) Doi: https://doi.org/10.1111/sjoe.12114

• Næs, Randi; Skjeltorp, Johannes A. & Ødegaard, Bernt Arne (2011)
  Stock Market Liquidity and the Business Cycle

  Journal of Finance, 66(1) , s. 139-176. Doi: https://doi.org/10.1111/j.1540-6261.2010.01628.x

• Norli, Øyvind; Fjesme, Sturla Lyngnes & Michaely, Roni (2010)
  Using Brokerage Commissions to Secure IPO Allocations

  [Report Research]. Handelshøyskolen BI

  Show summary

  Using data, at the investor level, on the allocations of shares in initial public offerings (IPOs), we document a strong positive relationship between the amount of stock-trading commission and the number of shares an investor receives in a subsequent IPO. We find no evidence to support the idea that investment banks allocate shares to investors that are perceived to be long-term investors. Our findings are consistent with the view that investment banks are able to capture some of the profits earned by investors when participating in underpriced IPOs.

• Xiouros, Costas & Zapatero, Fernando (2010)
  The Representative Agent of an Economy with External Habit Formation and Heterogeneous Risk Aversion

  The Review of financial studies, 23(8) , s. 3017-3047. Doi: https://doi.org/10.1093/rfs/hhq029

• Backus, David K.; Gavazzoni, Federico, Telmer, Christopher I & Zin, Stanley E. (2010)
  Monetary Policy and the Uncovered Interest Rate Parity Puzzle

  Social Science Research Network (SSRN), Doi: https://doi.org/10.2139/ssrn.1634825

  Show summary

  High interest rate currencies tend to appreciate. This is the uncovered interest rate parity (UIP) puzzle. It is primarily a statement about short-term interest rates and how they are related to exchange rates. Short-term interest rates are strongly affected by monetary policy. The UIP puzzle, therefore, can be restated in terms of monetary policy. Do foreign and domestic monetary policies imply exchange rates that violate UIP? We represent monetary policy as foreign and domestic Taylor rules. Foreign and domestic pricing kernels determine the relationship between these Taylor rules and exchange rates. We examine different specifications for the Taylor rule and ask which can resolve the UIP puzzle. We find evidence in favor of a particular asymmetry. If the foreign Taylor rule responds to exchange rate variation but the domestic Taylor rule does not, the model performs better. A calibrated version of our model is consistent with many empirical observations on real and nominal exchange rates, including Fama-84 negative correlation between interest rate differentials and currency depreciation rates.

• Bøhren, Øyvind & Strøm, R. Øystein (2010)
  Governance and Politics: Regulating Independence and Diversity in the Board Room

  Journal of Business Finance & Accounting, 37(9-10) , s. 1281-1308. Doi: https://doi.org/10.1111/j.1468-5957.2010.02222.x

  Show summary

  This paper analyzes the economic rationale for board regulation in place and for introducing new regulation in the future. We relate the value of the firm to the use of employee directors, board independence, directors with multiple seats, and to gender diversity. Our evidence shows that the firm creates more value for its owners when the board has no employee directors, when its directors have strong links to other boards, and when gender diversity is low. We find no relationship between firm performance and board independence. These characteristics of value-creating boards support neither popular opinion nor the current politics of corporate governance.

• Buch, Claudia M.; Driscoll, John C. & Ostergaard, Charlotte (2010)
  Cross-Border Diversification in Bank Asset Portfolios

  International Finance, 13(1) , s. 79-108.

• Bøhren, Øyvind; Priestley, Richard & Cooper, Ilan (2009)
  Real investment, economic efficiency, and managerial entrenchment

  [Report Research]. Handelshøyskolen BI

• Bøhren, Øyvind & Berzins, Janis (2009)
  Private firms are significant and different

  [Report Research]. Handelshøyskolen BI

• Gómez, Juan-Pedro; Priestley, Richard & Zapatero, Fernando (2009)
  Implications of Keeping-Up-with-the-Joneses Behavior for the Equilibrium Cross Section of Stock Returns: International Evidence

  Journal of Finance, 64(6) , s. 2703-273.

• Bøhren, Øyvind & Berzins, Janis (2009)
  Unoterte aksjeselskaper selskaper er viktige, uutforskede og spesielle

  Praktisk Økonomi & Finans, 8(2) , s. 65-75.

• Gerard, Bruno & Santis, Roberto De (2009)
  International portfolio reallocation: diversification benefits and European monetary union

  European Economic Review, 53(8) , s. 1010-1027. Doi: https://doi.org/10.1016/j.euroecorev.2009.01.003

• Berzins, Janis & Bøhren, Øyvind (2009)
  Unoterte aksjeselskaper selskaper er viktige, uutforskede og spesielle

  Praktisk Økonomi & Finans, (2) , s. 65-75.

• Freeman, Scott; Henriksen, Espen & Kydland, Finn E. (2009)
  The welfare cost of inflation in the presence of inside money

  Monetary Policy in Low-Inflation Economies, , s. 1-17.

• Norli, Øyvind; Østergaard, Charlotte & Schindele, Ibolya (2009)
  Liquidity and Shareholder Activism

  [Report Research]. Handelshøyskolen BI

  Show summary

  This paper documents that stock liquidity improves shareholders’ incentive to monitor management. Using a hand-collected sample of contested proxy solicitations and shareholder proposals as occurrences of shareholder activism, we find that poor firm performance increases the probability of shareholder activism and that this relationship is much stronger for firms with liquid stock than for other firms. The conclusion that liquidity improves monitoring is robust to different measures of firm performance and liquidity. We also document that target shareholders earn positive abnormal returns on the announcement date of activism and conclude that shareholder activism creates shareholder value.

• Xiouros, Costas (2009)
  Heterogeneous Beliefs and Time Variation in the Level of Prices

  [Report Research]. Handelshøyskolen BI

• Priestley, Richard & Cooper, Ilan (2009)
  Time-Varying Risk Premiums and the Output Gap

  The Review of financial studies, 22(7) , s. 2801-2833. Doi: https://doi.org/10.1093/rfs/hhn087

• Bøhren, Øyvind; Priestley, Richard & Ødegaard, Bernt Arne (2009)
  Investor short-termism and firm value

  [Report Research]. Handelshøyskolen BI

• Bøhren, Øyvind & Gjærum, Per Ivar (2009)
  Prosjektanalyse. Investering og finansiering

  [Textbook]. Fagbokforlaget

• Ødegaard, Bernt Arne (2009)
  The diversification cost of large, concentrated equity stakes. How big is it? Is it justified?

  Finance Research Letters, 6(2) , s. 56-72. Doi: https://doi.org/10.1016/j.frl.2009.01.003

  Show summary

  While the hypothesis that ownership concentration can affect the value of a company has seen a lot of empirical study, little light has been shed on a complementary problem, that these concentrated owners have a cost of their position due to an undiversified portfolio. Using a unique data set of the actual diversification of all Norwegian equity owners, we show that the largest owners of a corporation in fact have very undiversified equity portfolios, and that such owners have significant costs to their concentrated portfolios. At the level of risk of a benchmark portfolio, if they were to move from their present portfolio composition in risky assets to a well diversified portfolio, their returns would have increased by about 13 percentage points in annual terms. We ask whether this cost can be explained by estimated benefits of ownership concentration (private benefits), and show that extant estimates of private benefits are too low to offset our cost estimates. (c) 2009 Elsevier Inc. All rights reserved.

• Østergaard, Charlotte; Sørensen, Bent E. & Demyanyk, Yuliya (2008)
  Risk Sharing and Portfolio Allocation in EMU

  [Report Research]. European Economy Economic Papers

• Berzins, Janis; Bøhren, Øyvind & Rydland, Pål (2008)
  Corporate finance and governance in firms with limited liability: Basic characteristics

  [Report Research]. Handelshøyskolen BI

  Show summary

  We analyze a wide range of corporate finance and governance characteristics in all active Norwegian firms with limited liability over the period 1994-2005. This sample includes about 77,000 nonlisted (private) firms and 135 listed (public) firms per year. Nonlisted firms have barely been addressed in the finance literature, despite our finding that they employ four times more people than listed firms, have about four times higher revenues, hold twice as much assets, and constitute over 99% of the enterprises. Indirect evidence suggests that this is also the typical situation worldwide. The unexplored nature of nonlisted firms makes us address a large set of characteristics, and to focus more on describing overall patterns in the data rather than making elaborate tests of behavioral hypotheses. We find that the size distribution of firms in the economy is close to lognormal, which is consistent with independence between size and growth for the individual firm.

• Norli, Øyvind (2008)
  Individuelle investorer på Oslo Børs

  Magma forskning og viten, 11(3) , s. 47-54.

• Bøhren, Øyvind; Berzins, Janis & Rydland, Pål (2008)
  The corporate finance and governance of limited liability firms: Basic characteristics

  [Report Research]. BI Norwegian Business School

• Akram, Qaisar Farooq; Rime, Dagfinn & Sarno, Lucio (2008)
  Arbitrage in the Foreign Exchange Market: Turning on the Microscope

  Journal of International Economics, 76, s. 237-253. Doi: https://doi.org/10.1016/j.jinteco.2008.07.004

  Show summary

  This paper provides real-time evidence on the frequency, size, duration and economic significance of arbitrage opportunities in the foreign exchange market. We investigate deviations from the covered interest rate parity (CIP) condition using a unique data set for three major capital and foreign exchange markets that covers a period of more than seven months at tick frequency. The analysis unveils that: i) short-lived violations of CIP arise; ii) the size of CIP violations can be economically significant; iii) their duration is, on average, high enough to allow agents to exploit them, but low enough to explain why such opportunities have gone undetected in much previous research using data at lower frequency.

• Yuliya, Demyanyk; Ostergaard, Charlotte & Sørensen, Bent E. (2008)
  Risk Sharing and Portfolio Allocation in EMU

  [Report Research]. European Commission

• Næs, Randi; Skjeltorp, Johannes A. & Ødegaard, Bernt Arne (2008)
  Hvilke faktorer driver kursutviklingen på Oslo Børs?

  Norsk økonomisk tidsskrift, 122(2) , s. 56-56.

  Show summary

  Denne artikkelen analyserer avkastningsmønsteret og drivkreftene på Oslo Børs over perioden 1980-2006. Avkastningen på Oslo Børs kan forklares rimelig bra med en flerfaktormodell bestående av markedsindeksen, en størrelsesindeks og en likviditetsindeks. Som forventet gir endringer i oljeprisen signifikante utslag i kontantstrømmene til de fleste industrisektorene på børsen. Olje er imidlertid ikke en priset risikofaktor i det norske markedet. I likhet med studier i andre land finner vi at makrovariable påvirker aksjekurser, men siden vi finner svake tegn på at disse variablene er priset i markedet, er det grunn til å tro at hovedeffekten på avkastningen fra disse variablene kommer gjennom selskapenes kontantstrømmer.

• Aunon-Nerin, Daniel & Ehling, Paul (2008)
  Why firms purchase property insurance

  Journal of Financial Economics, 90(3) , s. 298-312. Doi: https://doi.org/10.1016/j.jfineco.2008.01.003

• Sucarrat, Genaro; Bauwens, Luc & Rime, Dagfinn (2008)
  Exchange Rate Volatility and the Mixture of Distribution Hypothesis

  High-Frequency Financial Econometrics, , s. 7-29.

• Næs, Randi; Skjeltorp, Johannes A. & Ødegaard, Bernt Arne (2008)
  Bransjesammensetningen på Oslo Børs

  [Professional Article]. Praktisk Økonomi & Finans, 24(4) , s. 9-9.

  Show summary

  Vi beskriver utviklingen i industrisammensetning og lønnsomhet på Oslo Børs over perioden 1980-2007. Viktige utviklingstrekk har vaert en sterk vekst både i markedsverdi og aktivitet, en høy konsentrasjon innenfor et fåtall selskaper og industrisektorer, til dels stor variasjon i betydningen av ulike sektorer og en høy realisert risikopremie.

• Gerard, Bruno; Cappiello, Lorenzo, Manganelli, Simone & Kadareja, Arjan (2007)
  Equity Market integration of the new EU member states

  Financial Development, Integration And Stability: Evidence form Central, Eastern adn South-Eastern Europe,

• Bortolotti, B.; Jong, F. de, Nicodano, G. & Schindele, Ibolya (2007)
  Privatization and stock market liquidity

  Journal of Banking & Finance, 31, s. 297-316.

  Show summary

  We also provide evidence of a positive spillover of SIP on the liquidity of private companies. This cross-asset externality is one implication of liquidity theories emphasizing the improved risk diversification opportunities and risk sharing brought about by privatization. This externality stems from both domestic privatization IPOs and cross-listings. (c) 2006 Elsevier B.V. All rights reserved.

• Saunders, David; Xiouros, Costas & Zenios, Stavros (2007)
  Credit Risk Optimization Using Factor Models

  Annals of Operations Research, 152(1) , s. 49-77.

• Priestley, Richard & Ødegaard, Bernt Arne (2007)
  Linear and Nonlinear exchange rate exposure

  Journal of International Money and Finance, 26, s. 1016-1037.

• Demyanyk, Yuliya; Ostergaard, Charlotte & Sørensen, Bent E. (2007)
  U.S. Banking Deregulation, Small Businesses, and Interstate Insurance of Personal Income

  Journal of Finance, 62(6) , s. 2763-2801.

• Bøhren, Øyvind & Josefsen, Morten (2007)
  Do stakeholders matter for corporate governance? Behavior and performance of Norwegian banks 1985-2002

  [Report Research]. Handelshøyskolen BI

  Show summary

  The distribution of formal control rights among the firm’s stakeholders (such as stockholders, creditors, employees, politicians, and customers) attracts considerable public attention in many countries. For instance, a common view in the UK and the US is that firms should have profit maximization as their only objective, and that stockholders should be the dominant stakeholder in corporate governance. In contrast, conventional wisdom in Continental Europe and Japan is that firms should have multiple objectives and allocate formal power to more stakeholder types than just stockholders. The politics of corporate governance addresses this issue by regulating the owners’ ability to control the corporation. This report addresses this issue empirically by trying to answer two questions. First, what relationship do we actually observe between stakeholder structure and corporate behavior? For instance, do firms take less risk when stockholders share control rights with employees, customers, and politicians? Second, what is the real-world link between stakeholder structure and economic performance? For instance, do ownerless firms have lower returns to capital invested than firms owned by stockholders?

• Hardouvelis, G.A.; Malliaropulos, D. & Priestley, Richard (2007)
  The impact of the EMU on the equity cost of capital

  Journal of International Money and Finance, 26(2) , s. 305-327.

• Norli, Øyvind (2007)
  Børsintroduksjoner

  [Professional Article]. Praktisk Økonomi & Finans, 23(3) , s. 11-19.

• Ostergaard, Charlotte; Demyanyk, Yuliya & Sørensen, Bent E. (2007)
  Banking Deregulation Helps Small Business Owners Stabilize Their Income

  [Professional Article]. Reginal Economist, Federal Reserve Bank of St. Louis,

• Ødegaard, Bernt Arne (2007)
  Price differences between equity classes, Corporate Control, foreign ownership, or liquidity?

  Journal of Banking & Finance, 31, s. 3621-3645.

• Edmans, Alex; Garcia, Diego & Norli, Øyvind (2007)
  Sports Sentiment and Stock Returns

  Journal of Finance, 62(4) , s. 1967-1998.

• Eckbo, B. Espen; Masulis, Ronald W. & Norli, Øyvind (2007)
  Security Offerings

  Handbook of Corporate Finance: Empirical Corporate Finance (B. Espen Eckbo),

  Show summary

  This essay surveys the extant literature and adds to the empirical evidence on issuance activity,flotation costs, and valuation effects of security offerings. We focus primarily on public offerings of equity for cash, although we also review and present new evidence on debt offerings and private placements. The essay has four major parts: (1) We review aggregate issue activity in exchange listed securities from 1980 through 2004. Following the IPO, only about one-half of the publicly traded firms undertake a public security offering of any type, and only about one-quarter undertake a SEO. Thus, SEOs are relatively rare, which is consistent with adverse selection costs being an important consideration when raising cash externally. (2) We review the evidence on direct issue costs across security types and flotation methods, including the more recent SEO underpricing phenomenon. A large number of studies provide evidence on the determinants of underwriter compensation, and confirm the importance of variables capturing information asymmetries and underwriter competition. (3) We survey and interpret the valuation effects of security issue announcements. In the period since the Eckbo and Masulis (1995) survey, many studies examining announcement-period stock returns have focused on the effects of flotation method choice and foreign offerings. The well-known negative average announcement effect observed for U.S. SEOs appears to be a somewhat U.S.-specific phenomenon. (4) We review and extend evidence on the performance of issuing firms in the five year post-issue period. The literature proposes either a risk based-explanation or a behavioral explanation for the phenomenon of low average realized returns following IPOs and SEOs. Standard factor model regressions fail to reject the null that the low average returns are commensurate with issuers' risk exposures. Recent theoretical developments suggest that lower risk levels following equity issues may be linked to issuers' investment activity, a promising direction for future research.

• Ehling, Paul & Ramos, Sofia B. (2006)
  Geographic versus industry diversification: Constraints matter

  Journal of Empirical Finance, 13(4/5) , s. 396-416.

• Bøhren, Øyvind & Ødegaard, Bernt Arne (2006)
  Governance and performance revisited

  International Corporate Governance after Sarbanes-Oxley, Paul Ali and Greg Gregoriou (ed), , s. 27-64.

• Bøhren, Øyvind; Priestley, Richard & Ødegaard, Bernt Arne (2006)
  The duration of equity ownership at the Oslo Stock Exchange 1989-1999

  [Report Research]. Handelshøyskolen BI

  Show summary

  To date little is known about how long equity ownership lasts, what determines its length, and whether ownership duration is related to rm performance. Using a unique time series of equity holdings over eleven years, we nd that on average the rm's largest owner stays less than three years and stays longer than owners with smaller stakes. The duration of nancial institutions and foreigners is shorter than that of individuals and industrial rms. We show that ownership duration is duration dependent as the probability of closing an equity position is a function of how long the owner has held the stake. Ownership duration appears to match the duration of the rm's investment projects. We nd no evidence that large owners vote by foot in the sense that bad news about earnings leads to duration ending. There is a negative relationship between ownership duration and a rm's performance in general, but the sign and strength of this relationship di ers across owner types. Long duration by nancial institutions and industrial corporations is negatively related to performance, whereas the opposite is true for individuals. This suggests that long term ownership may improve rm performance if the monitoring is direct as opposed to delegated.

• Norli, Øyvind (2006)
  Fotball og aksjemarkeder

  Magma forskning og viten, 9(3) , s. 70-75.

• Ødegaard, Bernt Arne (2006)
  Hvor mange aksjer skal til for å ha en veldiversifisert portefølje på Oslo Børs?

  [Professional Article]. Praktisk Økonomi & Finans, (1) , s. 85-89.

• Cooper, Ilan (2006)
  Asset pricingimplications of nonconvex adjustment costs and irreversibility of investment

  Journal of Finance, 61(1) , s. 139-170.

  Show summary

  This paper derives a real options model that accounts for the value premium. If real investment is largely irreversible, the book value of assets of a distressed firm is high relative to its market value because it has idle physical capital. The firm's excess installed capital capacity enables it to fully benefit from positive aggregate shocks without undertaking costly investment. Thus, returns to equity holders of a high book-to-market firm are sensitive to aggregate conditions and its systematic risk is high. Simulations indicate that the model goes a long way toward accounting for the observed value premium.

• Hardouvelis, G.A.; Malliaropulos, D. & Priestley, Richard (2006)
  EMU and European stock market integration

  The journal of business, 79(1) , s. 365-392.

  Show summary

  The launch of the single currency in Europe in January 1999 was preceded by a period of regulatory harmonization, convergence in bond yields and inflation rates, and strict fiscal policy across the Eurozone countries. We examine whether the 1990s also were characterized by increased stock market integration. The results indicate that, as forward interest differentials benchmarked against Germany and inflation differentials benchmarked against the three best performing states shrank toward zero, stock markets converged toward full integration. The United Kingdom, a country that chose not to enter the Eurozone, shows no such increase in stock market integration.

• Nerouppos, Marios; Saunders, David, Xiouros, Costas & Zenios, Stavros (2006)
  Risk Management in Emerging Markets: Practical Methodologies and Empirical Tests.

  Multinational Finance Journal, 10(3) , s. 179-221.

• Halpern, Paul & Norli, Øyvind (2006)
  Canadian Business Trusts: A New Organizational Structure

  [Professional Article]. Journal of Applied Corporate Finance, 18(3) , s. 66-75.

• Bøhren, Øyvind (2006)
  Eierskap og lønnsomhet

  [Professional Article]. Praktisk Økonomi & Finans, (3) , s. 91-103.

• Gerard, Bruno & Wu, Gengshu (2006)
  How important is intertemporal risk for asset allocation?

  The journal of business, 79(4) , s. 2203-2241.

  Show summary

  We test a conditional asset pricing model that includes long-term interest rate risk as a priced factor for four asset classes-large stocks, small stocks, and long-term Treasury and corporate bonds. We find that the interest risk premium is the main component of the risk premiums for bond portfolios, while representing a small fraction of total risk premiums for equities. This suggests that stocks, especially small stocks, are hedges against variations in the investment opportunity set. We estimate that, at average market volatility levels, investors earn annual premiums between 3.6% during expansions and 5.8% during recessions for bearing intertemporal risk alone.

• Næs, Randi & Ødegaard, Bernt Arne (2006)
  Equity trading by institutional investors: To cross or not to cross?

  Journal of financial markets, 9(2) , s. 79-99.

  Show summary

  The proliferation of market places and trading methods is a striking feature of current equity markets. A stated goal of all the new trading arrangements is to reduce transactions costs. We investigate costs in one new market place, the crossing network. A crossing network is a satellite trading place; it uses prices derived from a primary market, and merely matches on quantity. Using a data sample from a large institutional investor, we provide evidence that low measured costs in crossing networks are offset by substantial costs of trading failures. The costs of trading failures due to adverse selection in the network's order execution, are not reflected in standard measures of transactions costs. (c) 2006 Elsevier B.V. All rights reserved.

• Bøhren, Øyvind & Haug, Jørgen (2006)
  Managing earnings with intercorporate investments

  Journal of Business Finance & Accounting, 33(5-6) , s. 671-695. Doi: https://doi.org/10.1111/j.1468-5957.2006.00592.x

  Show summary

  We explore to what extent firms deliberately manage their financial reports by exploiting the flexibility of generally accepted accounting principles. Using a sample of Oslo Stock Exchange-listed firms with 20–50% equity holdings in other firms, we find that firms with high financial leverage tend to maximize reported earnings from these investments through their choice between the cost method and the equity method, possibly in an attempt to reduce debt renegotiation costs or to avoid regulatory attention. In contrast, managers do not systematically bias reported earnings to extract private benefits or to signal revised expectations about future cash flows. Firms use different earnings management tools in a consistent way, as the earnings effect of the cost/equity choice is not offset by discretionary accruals.

• Ødegaard, Bernt Arne & Børsum, Øystein G (2005)
  Currency hedging in Norwegian non-financial firms

  [Report Research]. Norges Bank

• Bjønnes, Geir Høidal & Rime, Dagfinn (2005)
  Dealer behavior and trading systems in foreign exchange markets

  Journal of Financial Economics, 75(3) , s. 571-605. Doi: https://doi.org/10.1016/j.jfineco.2004.08.001

  Show summary

  We study dealer behavior in the foreign exchange spot market using detailed observations on all the transactions of four interbank dealers. There is strong support for an information effect in incoming trades. The direction of trade is most important, but we also find that the information effect increases with trade size in direct bilateral trades. All four dealers control their inventory intensively. Inventory control is not, however, manifested through a dealer's own prices in contrast to findings by Lyons (J. Financial Econ. 39(1995) 321). Furthermore, we document differences in trading styles, especially how they actually control their inventories. (c) 2004 Elsevier B.V. All rights reserved.

• Bjønnes, Geir Høidal; Rime, Dagfinn & Solheim, Haakon O. Aa (2005)
  Liquidity provision in the overnight foreign exchange market

  Journal of International Money and Finance, 24(2) , s. 175-196. Doi: https://doi.org/10.1016/j.jimonfin.2004.12.003

  Show summary

  We present evidence that non-financial customers are the main liquidity providers in the overnight foreign exchange market using a unique daily data set covering almost all transactions in the SEK/EUR market over almost 10 years. Two main findings support this: (i) the net position of non-financial customers is negatively correlated with the exchange rate, opposed to the positive correlation found for financial customers and (ii) changes in net position of non-financial customers are forecasted by changes in net position of financial customers, indicating that non-financial customers take a passive role consistent with liquidity provision. (c) 2004 Elsevier Ltd. All rights reserved.

• Ødegaard, Bernt Arne & Børsum, Øystein G (2005)
  Valutasikring i norske selskaper

  [Popular Science Article]. Penger og kreditt, 1

• Bøhren, Øyvind (2005)
  Eierskap og lønnsomhet

  Økonomisk forum, 59(5) , s. 4-14.

• Bøhren, Øyvind & Krosvik, Nils Erik (2005)
  Tvangsinnløsning av minoritetseiere: Rettsøkonomien i norske skjønnssaker gjennom 25 år"  (Minority buyouts: Law and economics in Norwegian courts over 25 years)

  Tidsskrift for Rettsvitenskap, 118(1-2) , s. 122-152.

• Ødegaard, Bernt Arne & Børsum, Øystein G (2005)
  Valutasikring in norske selskaper

  Praktisk Økonomi & Finans, (1)

• Jacobsen, Dag Henning & Rime, Dagfinn (2005)
  Tobin-skatten: Perspektiver fra mikro-finans

  [Popular Science Article]. Økonomisk forum, (5) , s. 26-34.

• Bjønnes, Geir Høidal; Rime, Dagfinn & Solheim, Haakon O. Aa (2005)
  Volume and volatility in the FX market: Does it matter who you are?

  Exchange Rate Modelling: Where do we Stand? / Paul De Grauwe, ed,

• Bauwens, Luc; Rime, Dagfinn & Sucarrat, Genaro (2005)
  Exchange Rate Volatility and the Mixture of Distribution Hypothesis

  Empirical Economics, 30, s. 889-911. Doi: https://doi.org/10.1007/s00181-005-0005-x

• Isachsen, Arne Jon & Bjønnes, Geir Høidal (2005)
  Hjelper til globale penger

  Gyldendal Akademisk

• Eckbo, B. Espen & Norli, Øyvind (2005)
  Liquidity risk, leverage and long-run IPO returns

  Journal of Corporate Finance, 11(1-2) , s. 1-35.

• Bøhren, Øyvind & Strøm, Øystein (2005)
  The value-creating board: Theory and evidence

  [Report Research]. BI Norwegian Business School

  Show summary

  This paper explores empirically how board composition influences the conflict of interest between agents and principals, the production of information for monitoring and support, and the board's effectiveness as a decision-maker. We find that potential agency costs in our sample firms are high because the ownership-driven monitoring incentives are low. The average board has only six members, gender diversity is low, roughly half the firms have employee directors, and most CEOs are neither directors in their firm nor elsewhere. Using a wide set of such board characteristics and new measures of board independence and director networking, static and dynamic fixed effects panel data models show that value-creating boards are aligned with their shareholders, but dependent on the CEO. Multiple directorships create valuable information networks, whereas diversity in terms of gender, board size, and employee directors reduces value. Models accounting for endogeneity and reverse causation support these conclusions.

• Bøhren, Øyvind; Sharma, Samir & Vegarud, Tonje (2004)
  Eierstyring i store norske selskaper: Oppsigelse av toppleder

  PricewaterhouseCoopers (ed): Corporate Governance i et norsk perspektiv, , s. 124-137.

• Barr, David G. & Priestley, Richard (2004)
  Expected returns, risk, and the integration of international bond markets

  Journal of International Money and Finance, 23(1) , s. 71-97.

• Priestley, Richard & Ødegaard, Bernt Arne (2004)
  Exchange rate regimes and the price of exchange rate risk

  Economics Letters, 82, s. 181-188.

• Bjønnes, Geir Høidal & Rime, Dagfinn (2004)
  Electronic FX Trading -- influencing dealer behaviour?

  [Professional Article]. e-FOREX, (July) , s. 60-62.

• Bjønnes, Geir Høidal; Rime, Dagfinn & Solheim, Haakon (2004)
  The Role of Foreign Speculators in Speculative Attacks. The Case of 1998

  Sandrine Lardic and Valérie Mignon (eds.): Recent Developments on Exchange Rates,

• Isachsen, Arne Jon & Bjønnes, Geir Høidal (2004)
  Globale Penger

  Gyldendal Akademisk

• Bøhren, Øyvind; Haug, Jørgen & Michalsen, Dag (2004)
  Compliance with flexible accounting standards

  International Journal of Accounting, 39(1) , s. 1-19. Doi: https://doi.org/10.1016/j.intacc.2003.12.001

  Show summary

  We examine to what extent firms adhere to the stated intent of noncompulsory accounting standards when reporting for intercorporate investments. The Generally Accepted Accounting Principles (GAAP) in Norway strongly recommend that a 20–50% intercorporate investment is accounted for by the equity method rather than the cost method, if the investment is long-term, of strategic importance, and involves significant influence. Even so, we find that the actual use of the equity method is independent of the duration of the investment period, the fraction of equity held, its recent growth, and the investor's voting power. This lack of compliance suggests that one cannot use the observed choice between the cost method and the equity method to infer the underlying characteristics of the investment as specified by the accounting standard. Flexible GAAP may therefore not induce firms to disclose the information that the GAAP were designed to produce.

• Ongena, Steven; Smith, David & Michalsen, Dag (2003)
  Firms and their distressed banks: lessons from the Norwegian banking crisis

  Journal of Financial Economics, 67, s. 81-112.

• Santis, Giorgio De; Gerard, Bruno & Hillion, Pierre (2003)
  The Relevance of Currency Risk in the EMU

  Journal of Economics and Business, 55, s. 427-462.

• Gerard, Bruno; Thanyalakpar, Kessara & Batten, John (2003)
  Are East Asian Markets Integrated? Evidence from the ICAPM

  Journal of Economics and Business, 55, s. 585-607.

• Bjønnes, Geir Høidal (2003)
  Volume and volatility in the FX-market: Does it matter who you are?

  [Report Research]. Norges Bank

  Show summary

  The relationship between volume and volatility has received much attention in the literature on financial markets. However, due to the lack of data, few results have been presented for the foreign exchange (FX) market. Furthermore, most studies contain only aggregate series, and cannot distinguish between the impact of different participants or instruments. We study the impact of volume on volatility in the FX market using a unique data set of daily trading in the Swedish krona (SEK) market. The data set covers 95 percent of worldwide SEK trading, and is disaggregated on a number of reporting banks’ buying and selling in five different instruments on a daily basis from 1995 until 2002. We find that volume in general shows a positive correlation with volatility. However, the strength of the relationship depends on the instrument traded and the identity of the reporting bank. In particular, we find that trading tends to concentrate around the largest banks during periods of high volatility. These banks are probably also best informed. This is especially the case when volatility is high. We interpret this as evidence that heterogeneous expectations are important to an understanding of the volume-volatility relationship.

• Rime, Dagfinn (2003)
  New Electronic Trading Systems in the Foreign Exchange Market

  New Economy Handbook, , s. 471-504.

• Bøhren, Øyvind & Ødegaard, Bernt Arne (2003)
  Norsk eierskap: Særtrekk og sære trekk

  Praktisk Økonomi & Finans, 20, s. 3-17.

• Jørgensen, Kjell & Ubøe, Jan (2003)
  Statistikk for økonomifag

  [Textbook]. Gyldendal Akademisk

• Ostergaard, Charlotte; Sørensen, Bent E. & Yosha, Oved (2002)
  Consumption and Aggregate Constraints: Evidence from U.S. States and Canadian Provinces

  Journal of Political Economy, 110(3) , s. 634-645.

• Priestley, Richard (2002)
  Calculating the Probability of Failure of the Norwegian Banking Sector

  Journal of Multinational Financial Management, 12(1) , s. 21-40.

• Bøhren, Øyvind (2002)
  Finansparadigmet

  Essays on Uncertainty - Festskrift til Steinar Ekerns 60-årsdag, , s. 157-176.

• Nyborg, Kjell G.; Rydqvist, Kristian & Sundaresan, Suresh M. (2002)
  Bidder Behavior in Multiunit Auctions - Evidence from Swedish Treasury Auctions

  Journal of Political Economy, 110(2) , s. 394-424.

• Goodhart, Charles; Love, Ryan, Payne, Richard & Rime, Dagfinn (2002)
  Analysis of spreads in the Dollar/Euro and Deutsche Mark/Dollar foreign exchange markets

  Economic Policy, 17, s. 536-552. Doi: https://doi.org/10.1111/1468-0327.00096

• Bøhren, Øyvind & Ødegaard, Bernt Arne (2002)
  Norsk eierskap: Særtrekk og sære trekk

  Næringspolitikk for en ny økonomi, , s. 91-110.

• Priestley, Richard (2001)
  Time-varying persistence in expected returns

  Journal of Banking & Finance, 25(7) , s. 1271-1286.

• Bøhren, Øyvind & Ødegaard, Bernt Arne (2001)
  Corporate governance and economic performance in Norwegian listed firms

  [Report Research]. Handelshøyskolen BI

• Bøhren, Øyvind & Ødegaard, Bernt Arne (2001)
  Patterns of corporate ownership: insights from a unique data set

  Nordic Journal of Political Economy (NOPEC), 27, s. 55-86.

• Bøhren, Øyvind & Michalsen, Dag (2001)
  Finansiell økonomi. Teori og praksis

  [Textbook]. Skarvet Forlag

• Ødegaard, Bernt Arne (2000)
  Price differences between equity classes. Corporate Control, Foreign Ownership og Liquidity? Evidence from Norway

  [Report Research]. Handelshøyskolen BI

• Clare, A.D.; Oozer, M.C., Priestley, Richard & Thomas, S.H. (2000)
  Modeling the Risk Premium on Eurodollar Bonds

  Journal of Fixed Income, 9(March) , s. 61-73.

• Miffre, J. & Priestley, Richard (2000)
  Sources of Systematic Risk in Futures and Spot Markets: A Study of Market Integration

  Journal of Business Finance & Accounting, 27(7/8) , s. 933-952.

• Garrett, I. & Priestley, Richard (2000)
  Dividend Behaviour and Dividend Signaling

  Journal of Financial and Quantitative Analysis, 35(2) , s. 173-189.

• Antoniou, A.; Barr, D.G. & Priestley, Richard (2000)
  Abnormal Stock Returns and Public Policy: The Case of the UK Privatised Electricity and Water Utilities

  International Journal of Finance and Economics, 5, s. 93-106.

• Korsvold, Pål E. (2000)
  Valutastyring

  Cappelen Damm Akademisk

• Ødegaard, Bernt Arne (2000)
  Equity Trading by Institutional Investors. To Cross or Not to Cross?

  [Report Research]. Handelshøyskolen BI

  Show summary

  The costs to institutional investors of trading equity are of obvious practical as well as academic interest. To date, the empirical academic literature on this topic has concentrated on data from equity trading at organized exchanges. This paper adds to the extant research by inculding evidence on using alternative mechanisms for facilitating equity trading, so called "crossing". We use the equity trades of one large institutional investor, the Norwegian Petroleum Fund, to investigate the costs of trading equity using such alternative trading venues. The results show that for trades that were crossed, the average implicit and explicit costs were lower than found in similar cases in the academic literature. We do, however, find that the orders that did not get crossed were special. By conduction an event study we discover the presence of "adverse selection": The "best" stocks do not get crossed.

• Korsvold, Pål E. (2000)
  Finansiell økonomi gjennom 50 år: Fra porteføljevalg til eierstyring

  Kunne ikke finne tidsskrift Revang, Ø, , s. 176-196.

• Bøhren, Øyvind & Ødegaard, Bernt Arne (2000)
  The ownership structure of Norwegian firms: Characteristics of an outlier

  [Report Research]. Handelshøyskolen BI

• Rydqvist, Kristian & Green, Rick (1999)
  Ex-Day Behavior with Dividend Preference and Limitations to Short-Term Arbitrage: The Case of Swedish Lottery Bonds

  Journal of Financial Economics, 53, s. 145-187.

• Priestley, Richard & Malliaropulos, D. (1999)
  Mean Reversion in S.E. Asian Stock Markets

  Journal of Empirical Finance, 6(4) , s. 355-384.

• Moen, Espen R. (1999)
  How the Invisible Hand Creates Excessive Wage Differentials

  [Report Research]. Handelshøyskolen BI

• Korsvold, Pål E. (1999)
  Valutastyring av porteføljeinvesteringer

  Praktisk Økonomi & Finans, (3)

• Golombek, Rolf & Moen, Espen R. (1999)
  Do Voluntary Agreements Lead to Cost Efficiency?

  [Report Research]. Handelshøyskolen BI

• Ongena, Steven; Smith, David C. & Michalsen, Dag (1999)
  Distressed Relationships: Lessons from the Norwegian Banking Crisis (1988-1991)

  [Report Research]. Handelshøyskolen BI

• Olsson, Ulf Henning; Foss, Tron & Troye, Sigurd V. (1999)
  Does WLS reward the researcher for using non-normal data?

  [Report Research]. Handelshøyskolen BI

• Ødegaard, Bernt Arne (1999)
  Prisforskjeller mellom aksjeklasser

  Praktisk Økonomi & Finans, (3) , s. 81-89.

• Bøhren, Øyvind & Gjærum, Per Ivar (1999)
  Prosjektanalyse

  [Textbook]. Skarvet Forlag AS

• Clare, Andrew & Priestley, Richard (1998)
  Evidence in support of the CAPM from three South East Asian stock markets

  Ekonomia, 2(2) , s. 145-154.

• Priestley, Richard; Antoniou, A. & Garrett, I. (1998)
  Macroeconomic Variables as Common Pervaise Risk Factors and the Empirical Content of the Arbitrage Pricing Theory

  Journal of Empirical Finance, 5(3) , s. 221-240.

• Priestley, Richard; Antoniou, A. & Holmes, P. (1998)
  The Effects of Stock Index Futures Trading on Stock Index Volatility: An Analysis of the Asymmetric Response of Volatility to News

  Journal of futures markets, 18(2) , s. 151-166.

• Rydqvist, Kristian & Florentsen, Bjarne (1998)
  Ex-Day Behavior with Tax-Exempt Investors and Taxable Security Dealers: The Case of Danish Lottery Bonds

  [Report Research]. Handelshøyskolen BI

• Rydqvist, Kristian & Green, Richard C. (1998)
  Ex-Day Behavior with Dividend Preference and Limitations to Short-Term Arbitrage: The Case of Swedish Lottery Bonds

  [Report Research]. Handelshøyskolen BI

• Ongena, Steven; Smith, David C. & Birks, David (1998)
  Quality and duration of banking relationships

  Global Cash Management in Europe,

• Østergaard, Charlotte & Goodhart, Charles (1998)
  The Financial Services and Markets Bill

  Journal of Financial Regulation and Compliance, 6(4)

• Priestley, Richard; Clare, A. & Thomas, S. (1998)
  Reports of Beta's Death are Premature: Evidence from the UK

  Journal of Banking & Finance, 22(9) , s. 1207-1229.

• Priestley, Richard; Antoniou, A. & Garrett, I. (1998)
  Calculating the Equity Cost of Capital Using the APT: The Impact of the ERM

  Journal of International Money and Finance, 17(6) , s. 949-966.

• Priestley, Richard & Clare, A. (1998)
  Risk Factors in the Malaysian Stock Market

  Pacific-Basin Finance Journal, 6(1-2) , s. 103-114.

• Bøhren, Øyvind (1998)
  The agent's ethics in the principal-agent model

  Journal of Business Ethics, 17, s. 745-755.

• Østergaard, Charlotte (1998)
  IOSCO risk management and control guidance for securities firms and their regulators

  [Professional Article]. Financial Regulation Report,

• Rydqvist, Kristian (1998)
  Empirical Investigation of the Voting Premium

  [Report Research]. Handelshøyskolen BI

• Olsson, Ulf Henning; Foss, Tron & Troye, Sigurd V. (1998)
  The Performance of alternate estimation methods in Structural Equation Modeling under conditions of misspecification and non-normality

  [Report Research]. Handelshøyskolen BI

• Bøhren, Øyvind & Norli, Øyvind (1997)
  Determinants of intercorporate shareholdings

  European Finance Review, 1, s. 265-287.

• Bøhren, Øyvind & Gjærum, Per Ivar (1997)
  Prosjektanalyse

  Skarvet Forlag

• Gerard, Bruno (1997)
  International Asset Pricing and Portfolio Diversification with time-varying risk

  Journal of Finance, 52, s. 1881-1912.

• Bøhren, Øyvind (1997)
  Risk components and the market model: A pedagogical note

  Applied Financial Economics, 7, s. 307-310.

• Bøhren, Øyvind; Eckbo, Espen B. & Michalsen, Dag (1997)
  Why underwrite rights offerings? Some new evidence

  Journal of Financial Economics, 46, s. 223-261.

• Bøhren, Øyvind; Eckbo, Bjørn Espen, Michalsen, Dag & Smith, David C, (1997)
  Corporate dividend policy in Norway

  [Report Research]. BI Norwegian Business School

• Bøhren, Øyvind; Haug, Jørgen & Michalsen, Dag (1997)
  Consolidation policy and managerial discretion: Accounting for intercorporate shareholdings

  [Report Research]. BI Norwegian Business School

• Bøhren, Øyvind; Thorsland, Arne & Tollefsen, Pål (1996)
  Gjeldsstrukturen i norske aksjeselskaper

  Praktisk økonomi og ledelse, 12(2) , s. 51-60.

• Michalsen, Dag & Eckbo, Espen B. (1996)
  Norske aksjeemisjoner

  Praktisk økonomi og ledelse, 12(4) , s. 47-57.

• Bøhren, Øyvind; Eckbo, Espen B. & Michalsen, Dag (1996)
  Norske aksjeemisjoner

  Praktisk økonomi og ledelse, 12(4) , s. 47-57.

• Bøhren, Øyvind & Michalsen, Dag (1994)
  Finansiell økonomi. Teori og praksis

  [Textbook]. Skarvet

• Bøhren, Øyvind & Michalsen, Dag (1994)
  Corporate cross-ownership and market aggregates: Oslo Stock Exchange 1980-1990

  Journal of Banking & Finance, 18, s. 687-704.

• Bøhren, Øyvind (1993)
  På leting etter god pristeori: Historien om kapitalverdimodellen

  Sosialøkonomen, 47(2) , s. 20-24.

• Bøhren, Øyvind & Isachsen, Arne Jon (1991)
  Forsker og forretningsmann: En verdiskapende allianse

  [Popular Science Article]. Praktisk økonomi og ledelse, 7(3) , s. 115-122.

• Bøhren, Øyvind; Larsen, Knut, Michalsen, Dag & Schwencke, Hans Robert (1991)
  Egenkapitalrentabilitet og skatt: En kritisk analyse

  Beta – Scandinavian Journal of Business Research, 5(1) , s. 54-63.

• Bøhren, Øyvind & Gjærum, Per Ivar (1991)
  Prosjektanalyse med PC-verktøy

  [Textbook]. NKS

• Bøhren, Øyvind & Gjærum, Per Ivar (1991)
  Prosjektanalyse: En innføring

  [Textbook]. Skarvet

• Bøhren, Øyvind & Michalsen, Dag (1990)
  Merton Miller, norsk beskatning og finansiell verdiskapning

  Sosialøkonomen, 44(11) , s. 13-15.

• Bøhren, Øyvind (1990)
  Theory development processes in the social sciences: The case of stochastic choice theory

  Journal of Economic Psychology, 11(1) , s. 1-34.

• Bøhren, Øyvind & Michalsen, Dag (1990)
  Skattebaserte finansieringsinsentiver i norske aksjeselskaper fra 1970 til 1990

  Norsk Økonomisk Tidsskrift, 104(4) , s. 303-336.

• Bøhren, Øyvind (1987)
  Økonomisk risiko i oljeprosjekter

  [Popular Science Article]. BI-forum, (5) , s. 10-15.

• Bøhren, Øyvind (1987)
  Erfaringer fra produktutvikling: Finansiell programvare for PC

  [Popular Science Article]. BI-forum, (4) , s. 9-11.

• Bøhren, Øyvind (1987)
  PC-integrert undervisning i bedriftsøkonomi: Pedagogiske hensyn

  Beta – Scandinavian Journal of Business Research, 1(4) , s. 101-106.

• Bøhren, Øyvind & Ekern, Steinar (1987)
  Usikkerhet i oljeprosjekter: Relevante og irrelevante risikohensyn

  Beta – Scandinavian Journal of Business Research, 1(1) , s. 23-30.

• Bøhren, Øyvind & Ekern, Steinar (1987)
  Usikkerhet i oljeprosjekter

  Sosialøkonomen, 40(9) , s. 19-23.

• Bøhren, Øyvind & Gjærum, Per Ivar (1987)
  Budsjettering, investering og finansiering

  [Textbook]. Universitetsforlaget

• Bøhren, Øyvind & Ekern, Steinar (1985)
  Usikkerhet i oljeprosjekter: Relevante og irrelevante risikohensyn

  [Report Research]. Norges Handelshøyskole

• Bøhren, Øyvind & Ekern, Steinar (1985)
  Risiko og lønnsomhet i oljeprosjekter: Eksempler på modellbruk ved større feltanalyser

  [Report Research]. Norges Handelshøyskole

• Bøhren, Øyvind (1984)
  The validity of conventional valuation models under multiperiod uncertainty

  Journal of Business Finance & Accounting, 11(2) , s. 199-211.

• Bøhren, Øyvind; Ekern, Steinar, Johnsen, Thore & Korsvold, Pål E. (1984)
  Lønnsomhet av oljeprosjekter: En systematisk gjennomgang av alternative modeller for prosjektvurdering under usikkerhet

  [Report Research]. Norges Handelshøyskole

• Bøhren, Øyvind & Gjærum, Per Ivar (1984)
  Oppgaver og løsningsforslag i budsjettering, investering og finansiering

  [Textbook]. Universitetsforlaget

• Bøhren, Øyvind (1983)
  Sparing med skattefradrag: en privatøkonomisk analyse

  Bedriftsøkonomen, 45(10) , s. 532-537.

• Bøhren, Øyvind (1983)
  Skattefradrag for realrenter

  Sosialøkonomen, 37(9) , s. 12-16.

• Bøhren, Øyvind (1983)
  Bounding certainty equivalent factors and risk-adjusted discount rates

  Journal of Business Finance & Accounting, 10(1) , s. 139-146.

• Bøhren, Øyvind (1982)
  Effektiv rente på boliglån: en empirisk undersøkelse

  Bedriftsøkonomen, 44, s. 355-360.

• Bøhren, Øyvind (1982)
  Norsk oljepolitikk i beslutningsanalytisk perspektiv

  Bedriftsøkonomen, 44(2) , s. 128-135.

• Bøhren, Øyvind (1982)
  Er effektiv rente bryet verd?

  [Popular Science Article]. Økonomisk Revy, 45(2) , s. 457-469.

• Bøhren, Øyvind (1982)
  Å løse investeringsproblemer

  Bedriftsøkonomen, 44, s. 355-360.

• Bøhren, Øyvind & Schilbred, Cornelius M. (1982)
  Evaluating North Sea petroleum fields

  [Popular Science Article]. Noroil, , s. 31-35.

• Bøhren, Øyvind & Fuglaas, Geir (1981)
  Yrkesvalg og lønnsomhet: NHH kontra næringsliv og forvaltning

  Bedriftsøkonomen, 43(9) , s. 480-485.

• Bøhren, Øyvind & Ekern, Steinar (1981)
  Probabilities proportional to time-state prices

  Economics Letters, 8(4) , s. 1-6.

• Bøhren, Øyvind (1980)
  Informasjonsøkonomi - en selektiv oversikt

  Erhvervsøkonomisk Tidsskrift, 44(1) , s. 31-48.

• Bøhren, Øyvind & Schilbred, Cornelius M. (1980)
  North Sea oil taxes and sharing of risk: a comparative case study

  Energy Economics, 2, s. 145-153.

• Bøhren, Øyvind & Hansen, Terje (1979)
  Akseptable gjeldsrenter i inflasjonstider

  Sosialøkonomen, 33, s. 18-20.

• Bøhren, Øyvind & Ekern, Steinar (1979)
  Consistent rankings based on total and differential amounts under uncertainty

  Decision Sciences, 10(4) , s. 519-526.

• Bøhren, Øyvind (1978)
  Kostnadsoverskridelser og skatteregler i Nordsjøen

  Bedriftsøkonomen, 40(10) , s. 494-495.

• Bøhren, Øyvind (1978)
  Investeringsplanlegging under budsjettrestriksjoner - en kommentar

  Sosialøkonomen, 32, s. 28-39.

• Bøhren, Øyvind (1976)
  Om vurdering av teori: Anvendelse av vurderingskriterier med Howard-Sheth modellen som eksempel

  Norsk Økonomisk Tidsskrift, 13(3) , s. 1-16.