Quantitative Easing and Exuberance in Stock Markets: Evidence from the Euro Area

Lamoen, Ryan van; Vette, Nander de; Hudepohl, Tom

doi:10.2139/ssrn.3498327

Cited by 2 publications

(1 citation statement)

References 70 publications

(57 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The fact that unconventional monetary policies may turn into what Nickolaidi, in Chapter 2, calls "destabilising stability" seems to be receiving some support in the literature. To name a few, Lamoen et al (2019) find that periods of QE coincide with exuberant investor behaviour in Europe, even after controlling for improving macro fundamentals, while Libich (2020) the unconventional measures (QE) implemented in the post-2008 period, has likely contributed to feed major asset bubbles with markets responding to bad news about the economy's fundamentals by stock price increases as if it was good news: in anticipation that loose monetary measures (injections of liquidity) would continue. In turn, studying the effects of interest rate cuts on investment behaviour in an experimental setting, Conrad (2019) finds that decreasing interest rates encourage risk-taking and excessive risk-taking ensues when there are no capital costs, thus leading to encourage financial bubbles and overinvestments or wrong investments under QE policies.…”

Section: Looking At the Futurementioning

confidence: 99%

Preface

2021

A Modern Guide to Financial Shocks and Crises

View full text Add to dashboard Cite

Section: Looking At the Futurementioning

confidence: 99%

Preface

2021

A Modern Guide to Financial Shocks and Crises

View full text Add to dashboard Cite

Family affairs – Corporate governance involvement of families and stock market returns

Franzoi¹,

Mietzner

2021

Investment Management and Financial Innovations

View full text Add to dashboard Cite

This study explores the association between family influence in firms and stock market returns in Germany, a country with a less investor-friendly corporate governance system where shareholders cannot directly influence top managers. The study forms portfolios of firms with and without the influence of families as shareholders or members of the firm’s legal bodies. The models estimate portfolio returns from 2003-2013 using a four-factor model. Results suggest that corporate governance is highly correlated with stock returns in Germany. Specifically, they document a significant relationship between family influence and firm valuation. Firms with stronger family influence via voting rights and board-participation are found to have a higher firm value (annualized excess return: 0.48%-6.00%). The study interprets this to mean that families may improve a firm’s internal corporate governance, as their strong motivation and ability to become actively engaged in a firm’s daily operations or to assume a monitoring role distinguishes them from other corporate blockholders. The results add to those of an increasing number of publications finding a positive association between strong family governance and performance. They contribute to a year-long scholarly exploration of performance differences among family and non-family businesses, mainly by defining the former by mere ownership. The study combines a large set of governance provisions into a novel, transparent, and replicable index of family involvement and then estimates the empirical relation with market performance. The index captures influence via shareholder voting rights, considers direct influence of owners on day-to-day operations, and controls for indirect influence via supervisory board. AcknowledgmentThe authors acknowledge support by the Open Access Publication Funds of the HTWK Leipzig.

show abstract

Quantitative Easing and Exuberance in Stock Markets: Evidence from the Euro Area

Cited by 2 publications

References 70 publications

Preface

Preface

Family affairs – Corporate governance involvement of families and stock market returns

Contact Info

Product

Resources

About