The average capital growth rate across firms declines sharply during a recession, and recovers only slowly. We provide a micro-founded explanation for this and several new stylized facts of investment asymmetry. Our investment model features various degrees of reversibility, cyclical macroeconomic shocks, and uncertainty about the state of the economy. Model simulations replicate strikingly different empirical patterns of capital growth rates at the aggregate and firm levels, featuring no slope asymmetry and a positive level asymmetry at the firm level, negative slope and level asymmetries at the aggregate level, and a positive relation between the industry-level slope asymmetry and asset illiquidity.
Eric J. Barr, Fischer Barr and Wissinger LLC, Co-Founding Member, Had Article Published In Prestigious Industry Journal
Eric Barr featured in the Value Examiner.
MotiveWave Trading Platform adds Strategy Edition to its lineup of product offerings.
Piramal Enterprises Consolidated Results for the Third Quarter and Nine Months ended 31 December 2014
Revenue growth across businesses driving strong profitability In both the quarter and nine-month periods, the company delivered a robust financial performance with significant increase in operating profit and net profit, primarily driven by growth in revenues across all business segments.
We analyze the reactions of stock returns and the spreads of credit default swaps (CDS) of banks from Europe and the USA to four major regulatory reforms in the aftermath of the subprime crisis, employing an event study analysis. Contrary to public perception, we find that financial markets indeed reacted to the structural reforms enacted at the national level. The reforms succeeded in reducing bail-out expectations relative to the post-bail-out period, especially for systemic banks. The strongest effects were found for the Dodd–Frank Act and in particular for the Volcker rule. Bank profitability was affected in all countries, showing up in lower equity returns.