JUST Capital seeks to make public companies more "just" by measuring and ranking their overall impact on society, based on the priorities most important to the average American. Ethan Rouen and Charles Wang explore whether capitalism is broken, JUST Capital's performance evaluation methodology is relevant to corporate managers, and if its strategies for exerting influence can be effective in improving corporate behavior.
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by Robin Greenwood, Samuel G. Hanson, and Lawrence J. Jin
Recent empirical research in finance and economics has revived the idea that investor sentiment drives credit booms and busts. To explore the drivers of sentiment in credit markets, the authors model the two-way feedback between credit market sentiment and credit market outcomes. In their model the propagation of credit cycles is driven by the interplay between expectations and the refinancing nature of credit markets.
A Model of Credit Market Sentiment
Recent empirical research in finance and economics has revived the idea that investor sentiment drives credit booms and busts. To explore the drivers of sentiment in credit markets, the authors model the two-way feedback between credit market sentiment and credit market outcomes. In their model the propagation of credit cycles is driven by the interplay between expectations and the refinancing nature of credit markets.