We are excited to announce our new co-authored publication, "A test of the Modigliani-Miller theorem, dividend policy and algorithmic arbitrage in experimental asset markets," now available in the Journal of Banking and Finance. Our study experimentally tests the Modigliani-Miller theorem in a complete market, examining the impact of dividend policy and algorithmic arbitrage on the law of one price. Our findings reveal that Modigliani-Miller's law of one price breaks down when dividend payment order is independent but is restored by the presence of an algorithmic arbitrageur.
Discover more in our article: https://www.sciencedirect.com/science/article/pii/S0378426623000390
I am thrilled to share that I have been selected as a recipient of the Add-on Fellowship for Interdisciplinary Economics and Interdisciplinary Business Administration from the Joachim Herz Foundation. With its Add-On Fellowship, the Joachim Herz Foundation supports aspiring young researchers on their path to academic independence. The rising importance of sustainability highlights the need for interdisciplinary research that takes a more integrated approach beyond disciplinary boundaries. The Add-on Fellowship will provide me with the resources and support necessary to realize my plans for a cross-country study on the impact of culture on the corporate governance of externalities. This remarkable achievement marks a significant milestone in my academic journey, and I am eager to embark on this transformative interdisciplinary research endeavor.
In our recent publication "Losing funds or losing face? Reputation and accountability in the credit rating industry" in the Journal of Economic Dynamics and Control, my coauthors and I investigate the impact of soft versus hard reputation mechanism in issuer-paid ratings. The results show that soft reputation mechanisms, such as the threat of "losing face", can be a crucial component of effective market discipline.
Read more: https://doi.org/10.1016/j.jedc.2022.104520
I am excited to announce that I was appointed as Interim Professor for Electronic Finance and Digital Markets at the University of Göttingen for the upcoming winter term. In Göttingen, I will support the "Finance, Accounting and Tax" group. I am excited to collaborate with esteemed colleagues within the "Finance, Accounting, and Tax" group and look forward to the opportunities and challenges that lie ahead as I take on the role of Interim Professor for Electronic Finance and Digital Markets at the University of Göttingen.
Read more: https://www.uni-goettingen.de/de/665370.html
Dr. Wiebke Szymczak receives research funding for her project "Behavioral foundations of sustainable financial decisions" from the Idea and Venture Fund 2021. The aim of the Ideas and Venture Fund, which was set up with funds from the Excellence Strategy, is to provide fast and uncomplicated support for measures that serve to prepare a third-party funded project.
People can act sustainably for different reasons. For example, from the point of view of canonical finance research, sustainable decisions can only be expected if material gains can be expected from them. This view is supported by the so-called business case for sustainability. Indeed, a number of studies demonstrate a positive empirical relationship between a company's financial value creation and its sustainability ratings. Contrary to the canonical assumption of homo economicus, however, behavioral economics shows that people generally act rationally only to a limited extent and also take intangible aspects of their decisions into account. Although the implications of behavioral economic findings for the environmental and social sustainability of financial decisions have hardly been researched yet, the possible relevance of a lack of foresight on sustainability in a negative sense, but also of prosocial preferences in a positive sense, are obvious.
The research project will investigate whether and to what extent sustainable decisions are attributable to different types of preferences.
Dr. Wiebke Szymczak won the Liechtenstein Prize for Young Researchers in the category "Best Publication" for her paper entitled "The impact of endogenous and exogenous cash inflows in experimental asset markets", published in the Journal of Economic Behavior and Organization. The prize, endowed with a total of CHF 10,000, is awarded annually for outstanding projects by young researchers at the University of Liechtenstein. It is intended to motivate promising young researchers to pursue a scientific career, to promote research in areas relevant to Liechtenstein, and to strengthen Liechtenstein as a research center. Due to the Corona crisis, the award ceremony was held by mail and will be made up for this year at an official ceremony.
Today @ Mercator Roundtable "Sustainable Finance - Leveraging finance for a sustainable Transformation"
Dr. Wiebke Szymczak is one of three invited panelist at the Mercator Roundtable 2020. She will discuss with Ass.-Prof. Dr. Martin Nerlinger and Franziska Schütze about ways to leverage finance for a sustainable transformation.
In particular, her main thesis is that the term "sustainable finance" covers a number of different concepts that imply very different incentives for the real economy. For example, a company with minimal ESG-related risks can sometimes cause significant negative externalities.
on the one hand. On the other hand, an environmentally and socially sustainable company may be exposed to extreme ESG-related risks in the future.The transformative potential of sustainable finance ultimately depends on the extent to which the financial sector has credible
incentives to reduce negative externalities and promote positive externalities (impact). In this context, it must be taken into account that
government regulation is explicitly anticipated as a transformation risk.
After six years abroad, I am moving back to Hamburg to start a new position as postdoctoral researcher for sustainable finance at the chair of Prof. Dr. Timo Busch. Looking forward to a new chapter!
The Durham University Business School and the IHRR are proudly hosting a symposium on research exploring fundamental economic questions with a wide interdisciplinary lens. Nobel Laureate Professor Vernon Smith will deliver a lecture exploring the relationship between market and personal interactions through the lens of Scottish Enlightenment and laboratory experiments. BMMLAB's Professor Peter Bossaerts will deliver a talk on decision making in complex tasks that intersects economic theory and biology. At the end of both talks, there will be a Q&A session with both speakers.