Swedish House of Finance

During his visit to Stockholm, Adi Sunderam (Harvard University) discussed how market participants initially underestimated the Federal Reserve System's response to inflation during COVID-19. He emphasized the crucial role of policy moves in shaping public perceptions and restoring confidence in the Fed’s commitment to fighting inflation.    Key insights from the interview:  - Market participants initially underestimated the U.S. Fed's response to inflation, only adjusting their expectations after rate hikes in early 2022.  - Public perceptions of monetary policy significantly impact long-term interest rates and the broader economy, demonstrating the importance of aligning expectations with policy moves.  - Central bank actions, like interest rate increases, play a crucial role in shaping public perceptions, particularly during periods of heightened uncertainty such as the post-pandemic recovery.    Read here: https://lnkd.in/gkSQ9BYN #finance #research

💡 Are pro-social stakeholders driving better sustainability outcomes?  Recent research by Jan Starmans (SHoF/SSE), Thomas Geelen (Copenhagen Business School and Danish Finance Institute (DFI), and Jakub Hajda (HEC Montréal) delves into how the rise of Environmental, Social, and Governance (ESG) priorities is reshaping organizational sustainability. They found that while top-down initiatives led by owners tend to consistently boost sustainability, bottom-up efforts from managers may trigger conflicts with owners, potentially reducing sustainability. The findings highlight the complex dynamics between who drives sustainability within an organization and how it impacts overall ESG performance.  Read more about their work: https://lnkd.in/gANwJHAG #ESG #Sustainability #Research #Finance 

Why do mortgages matter? Join us for a seminar with Harvard University’s John Y. Campbell to discover how global mortgage systems differ, the importance of flexible mortgage rules for consumer and economic protection, and what Sweden can learn from international crises. 📅 November 7, 15:45 – 17:00  📍 Stockholm School of Economics   👉 Learn more and register: https://bit.ly/3N23obI Campbell is a leading expert in household finance and asset pricing who has conducted influential research on mortgages, savings, and investments. He’s this year’s recipient of the Skandia's Research Award on Long-Term Savings. #finance #research #housing 

NEW from the ECGI Blog: A New Era in Corporate Governance: Diversity, Democracy, and Shareholder Power. We are delighted to announce this special edition of the ECGI Blog, presenting the key highlights from the recent Corporate Governance Conference hosted by the Swedish House of Finance (SHoF) and European Corporate Governance Institute (ECGI) in Stockholm, organized by Bo Becker and Per Strömberg (Swedish House of Finance and Stockholm School of Economics). This special blog edition reflects on discussions by Luigi Zingales (The University of Chicago Booth School of Business and ECGI) and Wei Jiang (Emory University and ECGI) about the future of corporate governance, with a focus on board diversity and the role of shareholders in corporate strategy. It also features insights from Jan Starmans (Stockholm School of Economics) on the complex dynamics between pro-social stakeholders and organizational sustainability, and Tove Forsbacka (Stockholm School of Economics) on how proxy advisors influence competition among firms with high levels of common ownership. 👉To read more, click here: https://lnkd.in/gaPbSuK9 🎥Watch the conference highlights: https://lnkd.in/g5fuWYRJ #CorpGov #BoardDiversity #SustainableLeadership

🔎 Is passive investing reshaping the stock market for the better?  Recent research by Paul Huebner (SHoF/SSE), Valentin Haddad (UCLA), and Erik Loualiche (University of Minnesota) uncovers how the rise of passive investing is making the stock market more inelastic, disrupting the price-setting mechanisms that keep markets stable. Their findings suggest that as more investors move away from active stock-picking and embrace index-tracking strategies, the market’s ability to adjust to changes in supply and demand is weakening—potentially leading to greater price volatility and reduced liquidity. Huebner explored these insights during a breakfast discussion with SHoF’s partner organizations and invited guests, moderated by SHoF’s Professor Alexander Ljungqvist. 👉 Read about their research: https://bit.ly/3NrDnmj  👉 Read about the discussion: https://bit.ly/404Szgv #Research #Finance #StockMarket 

Congratulations to Daron Acemoglu, Simon Johnson, and James A. Robinson, this year’s recipients of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. SHoF researchers have has a long history engaging with Nobel Laureates; Per Strömberg has served on the Economic Sciences Committee, responsible for selecting the laureates. This year, Ingrid Werner, member of SHoF’s Scientific Advisory Board, is part of the committee that selected the laureates. See all previous Nobel related content: https://bit.ly/4eInLH7 👥 Watch a panel discussion with the 2022 Nobel Laureates 🎧 Listen to Per Strömberg talk about the laureate selection process in this podcast hosted by Freakonomics 🎥 Revisit the 2018 Nobel Symposium on ‘Money and Banking,’ co-hosted by SHoF and Sveriges riksbank   #NobelPrize #Economics #Research #NobelLaureates #Finance

🧠 How do mergers and acquisitions impact employee mental health? While a large body of academic research in economics and finance has analyzed the causes and consequences of M&A, most of this work has focused on their financial determinants and outcomes from the perspective of shareholders. This almost exclusive focus on firm value is not sufficient to understand whether mergers are good for society. A study by SHoF’s Ramin Baghai, Marieke Bos, together with Laurent Bach (ESSEC Business School) and Rui C. Silva (Nova School of Business and Economics), focuses on another important set of stakeholders: a firm’s workers. Their findings reveal that M&A events lead to a significant rise in stress, anxiety, depression, and suicide rates. Read more: https://lnkd.in/gWDq7vW7 #mentalhealthday #finance #research

Why does the stock market fluctuate while the economy stays steady?  During his visit to Stockholm, Professor Andrew Atkeson (UCLA) explained how small shifts in investor expectations about the distribution of corporate income can cause significant market swings—without destabilizing the economy.    Key insights:  - Stock market volatility is driven by changes in investor expectations about how corporate income will be split between owners and workers.  - Small shifts in these expectations cause large stock price swings without affecting the broader economy.  - Policymakers should focus on economic performance, viewing market fluctuations as signals of future inequality.    Read a Q&A with Atkeson: https://lnkd.in/gqQ4jfDX    #research #finance #stockmarket #economy 

During her visit to Stockholm last week, Sasha Indarte (The Wharton School) shared insights from her research on moral hazard and liquidity in household bankruptcies. Her findings reveal that 83% of bankruptcy filings are driven by liquidity shortfalls, challenging the idea that moral hazard — when people file for bankruptcy for potential wealth gain by reducing their debt — is the primary driver. Watch the full interview here: https://bit.ly/3Y8m0fp Indarte was a keynote speaker at the workshop “Household Debt Relief: New Data, Micro-Macro Perspectives,” organized by SHoF researchers Marieke Bos and Paula Roth (Stockholm School of Economics), and Elin Molin (Lund University). #Finance #Bankruptcy #Liquidity #Research 

Mortgages Around the World: how do global mortgage systems differ, and what can Sweden learn from them? On November 7, join a seminar with Professor John Y. Campbell (Harvard University), a leading household finance expert who has conducted influential research on mortgages, savings, and investments. He will present his work comparing mortgage systems in countries like the U.S., Denmark, and Sweden, offering valuable insights into how these markets influence financial stability. His expertise is particularly relevant as Sweden revisits its mortgage regulations to balance consumer protection and macroeconomic risks. Campbell is this year’s recipient of the Skandia Research Award on Long-Term Savings. Register: https://lnkd.in/gk9kbeH5 #finance #research #mortgage #householdfinance