This paper proposes a new explanation for the observed excess co-movement in default risk across borrowers. In our equilibrium model, a negative idiosyncratic shock to one borrower reduces its creditworthiness but also makes another borrower a …
We study how firm ESG performance affects domestic and foreign institutional investments. At the firm level, the marginal effects of ESG on institutional ownership vary across institution origin and investment destination countries. At the …
We construct a comprehensive database of public firm ownership in 49 countries and study the investment scope and preferences of different types of investors. Aggregate home bias has declined but is still much higher in emerging markets (EMs). …