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Foreign currency borrowing, exports and firm performance:evidence from a currency crisis (2018)
Journal Article
Bougheas, S., Lim, H., Mateut, S., Mizen, P., & Yalcin, C. (2018). Foreign currency borrowing, exports and firm performance:evidence from a currency crisis. European Journal of Finance, 24(17), (1649-1671). doi:10.1080/1351847X.2017.1421246. ISSN 1351-847X

This paper develops a simple signaling model of foreign currency borrowing that yields predictions about firm survival and performance during a currency crisis. Using a large panel of firm level data for South Korea we offer empirical support for man... Read More

Systemic risk and the optimal seniority structure of banking liabilities (2018)
Journal Article
Bougheas, S., & Kirman, A. (2018). Systemic risk and the optimal seniority structure of banking liabilities. International Journal of Finance and Economics, 23(1), doi:10.1002/ijfe.1602. ISSN 1076-9307

The paper argues that systemic risk must be taken into account when designing optimal bankruptcy procedures in general, and priority rules in particular. Allowing for endogenous formation of links in the interbank market we show that the optimal poli... Read More

Systemic risk and macroeconomic fat tails (2017)
Book
Bougheas, S. (2018). Systemic risk and macroeconomic fat tails. In P. Commendatore, I. Kubin, S. Bougheas, A. Kirman, M. Kopel, & G. I. Bischi (Eds.), The economy as a complex spatial systemCham: Springer. doi:10.1007/978-3-319-65627-4_6

We propose a mechanism for shock amplification that potentially can account for fat tails in the distribution of the growth rate of national output. We argue that extreme macroeconomic events, such as the Great Depression and the Great Recession, wer... Read More

Product and labour market entry costs, underemployment and international trade (2017)
Book
Bougheas, S., & Riezman, R. (2017). Product and labour market entry costs, underemployment and international trade. In B. J. Christensen, & C. Kowalczyk (Eds.), Globalization: strategies and effectsSpringer. doi:10.1007/978-3-662-49502-5_2

We develop a small, open economy, two-sector model with heterogeneous agents and endogenous participation in a labor matching market. There are two types of agents: workers and entrepreneurs. Both populations are heterogeneous. Workers are distinguis... Read More

Bank insolvencies, priority claims and systemic risk (2016)
Journal Article
Bougheas, S., & Kirman, A. (2016). Bank insolvencies, priority claims and systemic risk. Lecture Notes in Economics and Mathematical Systems, 683, doi:10.1007/978-3-319-40803-3_8. ISSN 0075-8442

We review an extensive literature debating the merits of alternative priority structures for banking liabilities put forward by financial economists, legal scholars and policymakers. Up to now, this work has focused exclusively on the relative advant... Read More

Lead-lag relationships in an embryonic stock market: exploring the role of institutional ownership and liquidity (2016)
Journal Article
Arjoon, V., Bougheas, S., & Milner, C. (2016). Lead-lag relationships in an embryonic stock market: exploring the role of institutional ownership and liquidity. Research in International Business and Finance, 38, doi:10.1016/j.ribaf.2016.04.012. ISSN 0275-5319

This paper investigates the influence of institutional ownership and liquidity on stock return relationships for an embryonic and relatively illiquid stock market. Using daily, individual stock data for Trinidad and Tobago from 2001 to 2015 and a VAR... Read More

Risk taking and information aggregation in groups (2015)
Journal Article
Bougheas, S., Nieboer, J., & Sefton, M. (2015). Risk taking and information aggregation in groups. Journal of Economic Psychology, 51, doi:10.1016/j.joep.2015.08.001. ISSN 0167-4870

We report a controlled laboratory experiment examining risk-taking and information aggregation in groups facing a common risk. The experiment allows us to examine how subjects respond to new information, in the form of both privately observed signals... Read More

Complex financial networks and systemic risk: a review (2015)
Book
Bougheas, S., & Kirman, A. (2015). Complex financial networks and systemic risk: a review. In S. Kayam, P. Commendatore, & I. Kubin (Eds.), Complexity and Geographical Economics: Topics and ToolsSpringer International Publishing. doi:10.1007/978-3-319-12805-4_6

In this paper we review recent advances in financial economics in relation to the measurement of systemic risk. We start by reviewing studies that apply traditional measures of risk to financial institutions. However, the main focus of the review is... Read More

Do psychological fallacies influence trading in financial markets? Evidence from the foreign exchange market
Journal Article
Bleaney, M., Bougheas, S., & Zhiyong, L. (2017). Do psychological fallacies influence trading in financial markets? Evidence from the foreign exchange market. Journal of Behavioral Finance, ISSN 1542-7560

Research in both economics and psychology suggests that, when agents predict the next value of a random series, they frequently exhibit two types of biases, which are called the gambler’s fallacy (GF) and the hot hand fallacy (HHF). The gambler’s fal... Read More

The open economy balance sheet channel and the exporting decisions of firms: evidence from the Brazilian crisis of 1999
Journal Article
Bougheas, S., Mizen, P., & Silva, S. (2015). The open economy balance sheet channel and the exporting decisions of firms: evidence from the Brazilian crisis of 1999. Oxford Economic Papers, doi:10.1093/oep/gpv046. ISSN 0030-7653

We consider the impact of the Brazilian crisis of 1999 on the extensive and intensive margin of exporters versus non-exporters through the open economy balance sheet channel. Using an open economy balance sheet channel model with firm heterogeneity,... Read More