We propose an explanation for default risk linkages based on a Lucas model with across independent debt-financed borrowers. The transmission mechanism is that variation in the size of a borrower impacts the default decision for all borrowers. If a …
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). …
We study how firms’ ESG performance affects domestic and foreign institutional investment and rebalancing. Country-by-country post-double-LASSO estimates reveal heterogeneous marginal effect of ESG on firm-level institutional ownership. At the …