NEWS

Thomas Paul Gehrig

2021

June LACK OF RESILIENCY IMPAIRS COMPETITIVENESS OF EUROPEAN SYSTEMATICALLY SIGNIFICANT BANKS: The paper "Did the Basel Process of Banking Regulation Enhance the Resiliency of European Banks?" (with Maria Chiara Iannino) has been accepted for publication at the Journal of Financial Stability. The study evaluates the whole Basel process up to now with respect to reaching the goals of "maintaining the safety and soundness" of the financial sector since its inception in 1988. Our findings are mixed; while most of the European joint stock banks have not increased the riskiness of their operations, both on an individual as well as on a systemic level, the most systemically significant banks have built-up significant capital short-fall prior and especially during the Great Financial Crisis, which despite Basel III and Banking Union has not been reduced to pre-crisis levels until 2019. The consistently low market-to-book valuations of these institutions, relative to earlier episodes, reflect lack of international competitiveness. (June 10th)
 
June INFLATION IS BACK IN THE U.S.: The U.S. consumer price index has increased at an annual 5% over the last year according to the U.S. Bureau of Labor Statistics. This is the second consecutive month that the U.S. inflation rate exceeds the official target of 2-3%. Western Central Banks are eager to downplay the facts by referring to temporary phenomena. Alarmingly, the S&P/Case-Shiller U.S. National Housing Price Index has been rising at accelerating annual growth rates of more than 10% since December 2020 (in fact 13% in March 2021). Housing inflation and real estate prices are not included in the price indices used by the ECB so far. Accordingly, and given similar developments in Europe, their statistics are likely downward biased in the Euro Area. Strategic review, and correction, of monetary policy is urgently called for. (June 10th)
 
JuneCORONA DEATH TOLL STILL GROWING RAPIDLY. Despite the recent successes in vaccinations the pandemic remains by far more virulent than a year ago. The largest toll applies to the EU27 with more than 720.000 casualties (19,5%), followed by the US with 597.000 (16,1%), Brasil 470.000 (12,7%), India 340.000 (9,1%), Mexico 228.000 (6,7%), Peru 185.000 (5%) and UK 128.000 (3,5%) as reported by Johns-Hopkins University (precise up-to-date numbers available at "Global Map"). Increasing infections in UK due to the Indian mutation of the virus. These numbers tend to be lower bounds to the true (unobservable) numbers, which include unreported casualties in various countries as well. (June 5th)
 
May WKÖ VISITING PROFESSORSHIP ON THEMES OF THE AUSTRIAN SCHOOL: Martin Hellwig (MPI Bonn) is the first WKÖ Visiting Professor. In October he will teach an advanced course on Systemic Risk, Financial Stability, and Monetary Policy". He is the author of the book on The Bankers' New Clothes: What's wrong about banking and what to do about it? (jointly with Anat Admati, Stanford). Besides many other prestigious functions he has been the president of the Scientific Advisory Council of the European Stability and Risk Board (ESRB).
 
May VOX-EU: "Are socially responsible banks more resilient?" Thomas Gehrig in interview with Tim Phillips from CEPR (London) about current research on bank resiliency conducted jointly with Maria Chiara Iannino (St. Andrews, UK) and Stephan Unger (Saint Anselm, US). (May 21st)
 
May VIRTUAL MEETINGS UNDERMINE DEMOCRACY: In her recent ECGI Discussion Paper 748/2021 on "How Shifting from In-Person to Virtual-Only Shareholder Meetings Affects Shareholders’ Voice" Miriam Schwartz-Ziv (Hebrew University) reports disconcerting evidence on an increasing temptation towards exercising autocratic leadership style and suppressing shareholder democracy in U.S. corporations. As a (partial) solution she recommends a higher degree of transparency, including public availability of the recording of the full meeting, provision of participant lists as well as the content of all questions submitted. (May 18th)
 
May IN-PERSON WORKSHOP AT BUNDESBANK: The 10th Workshop "Banks and Financial Markets", organized by Thomas Gehrig, Michael Koetter (IWH and U. Magdeburg), Thilo Pausch (Dt. Bundesbank) and Peter Welzel (U. Augsburg) will take place at the Conference Center of the Deutsche Bundesbank in Eltville from October 21-22, 2021, circumstances permitting. Application deadline is August 15th, 2021. (May 17th)
 
May US INFLATION EXCEEDS 4%: Constantly accelerating inflation rates in the US - see U.S. Bureau of Labor Statistics - are driving inflationary expectations and long-term interest rates, echoing rate increases in 2006/7. These are early stress tests for global stock markets, challenging monetary policy and banking supervision to remain vigilant and prepared. (May 14th)
 
May SECOND SUSTAINABLE FINANCE FORUM, SHANGHAI: The paper on "Social Responsibility and Bank Resiliency" (joint with Maria Chiara Iannino, St. Andrews, UK, and Stephan Unger, Saint Anselm, US) has been invited for presentation at the Second Sustainable Finance Forum in Shanghai. (May 8th)
 
May INTRODUCING SCHMALENBACH JOURNAL OF BUSINESS RESEARCH: The first issue of SBUR has appeared in print. As a golden open access journal SBUR combines the open access commitment towards an open science world, i.e. unrestricted and free access to results of scientific research, and the long tradition of the predecessor journals Business Research and the Schmalenbach Business Review. (May 5th)
 
MayESEM 2021: The paper on "Speculative and Precautionary Demand for Liquidity in Competitive Banking Markets" (joint with Diemo Dietrich, Newcastle, UK) has been invited for presentation at ESEM 2021 (virtual) in Copenhagen. (May 1st)
 
April IN THE ABSENCE OF PRO-ACTIVE INTERVENTION RIGHTS FINANCIAL SUPERVISORS RISK OF EFFECTIVELY BECOMING ACCOMPLICES OF CRIMINAL ACTIVITIES: The cases of Wirecard and Commerzialbank Mattersburg reveal one common basic flaw in regulation for not having acted in a timely fashion, even when indications of criminal activities have already been voiced in public. In both cases in retrospect supervisors defend their own inaction by lack of mandate for investigating criminal activities that are not covered explicitly by law. BaFin fulfilled its official mandate only with respect to Wirecard Bank but not with respect to all the other dozens of Wirecard subsidiaries, which did not officially belong to their jurisdiction. Such rigid regulatory mandates without pro-active intervention rights, can easily be outplayed by criminals in their fraudulent schemes, and if done properly, act to protect the fraudulent schemes. This has become visible in the Wirecard case causing an investigation by the German Parliament. Pro-active intervention rights are particularly useful supervisory instruments in situations with long-term relations between auditors and the audited corporations, and, therefore, should constitute an essential element of the regulatory design. Similarly to special audits they create a risk of discovery for sub-standard auditing practices. This, in particular, relates to "friendly" business relationships when over time active auditing is increasingly replaced by cosy personal relationships as in the Mattersburg case. Of course, pro-active intervention rights also increase the responsibility of supervisors as well as the risk of false judgement and action. However, as the cases of Wirecard and Commerzialbank Mattersburg illustrate, the price of inaction may be a lot higher. (April 23)
 
April CONFERENCES OPENING UP AGAIN IN THE US: This year's conference on Ethics of Business, Trade and Global Governance will take place Dec. 3-4th in Wentworth-by-the-Sea (near Portsmouth, NH). Due to widespread vaccination success in the US a hybrid conference is feasible again; foreign participants from risk areas, or those who desire so, can participate online. This is the fourth conference in a series organized jointly with Department of Finance, University Vienna and the Center for Responsible Banking & Finance of University of St. Andrews (UK). The earlier conferences had been organized in Portsmouth/NH (2018), Klosterneuburg (2019), and Saint Anselm-virtual (2020). Deadline for submission of paper proposals is August 31st. (April 22)
 
AprilCORONA DEATH TOLL REACHES 3 MILLION WORLDWIDE. The largest toll applies to the EU27 with more than 655.000 casualties (22%), followed by the US with 566.000 (19%), Brasil 368.000 (12%), Mexico 211.000 (7%), India 176.000 (6%) and UK 127.000 (4%) as reported to Johns-Hopkins University (precise numbers available at "Global Map"). These numbers tend to be lower bounds to the true (unobservable) numbers, which include unreported casualties in various countries as well. (April 17th)
 
AprilMYOPIC PANDEMIC MANAGEMENT MISSES CRUCIAL LONG-TERM INVESTMENTS AND IS PUNISHED HEAVILY BY INCREASING LOCKDOWN REQUIREMENTS. Focus on short-term management in Europe in summer/fall 2020 is punished heavily now by scarcity of vaccines. While the US has invested early and decisively in vaccine production capacities in form of private public partnerships - e.g. Astra Zeneca (1 billion USD, May 21,2020), Johnson & Johnson (1,2 billion USD, Aug. 5, 2020), Moderna (1,1 billion USD, 11. Aug 2020), Novavax (1,6 billion USD, Jul. 7, 2020), Sanofi & GlaxoSmithCline (2,1 billion USD, Jul 31st, 2020) - the EU has followed suit in fall on a far smaller scale with BioNTech (375 million EUR plus repayable EIB credit of 100 million) and Curevac (250 million EUR plus an 23% equity stake of 70 million EUR, now valued at about 350 million EUR at current market prices). Each extra week of lockdown costs Europe billions of income and wealth and, crucially, each week of delayed vaccinations costs hundreds of lives. Distributional debates about priority rules, disputes about vaccine allocation, and unethical front-running are the most visible manifestations of scarcity management. The earlier corrective action is implemented the better for Europe. (April 3rd)
 
AprilINVITED FOR PRESENTATION IN RESEARCH SEMINARS: The paper on "Speculative and Precautionary Demand for Liquidity in Competitive Banking Economies" (joint with Diemo Dietrich, Newcastle, UK) has been invited for presentation at Research Seminars of the Vienna Graduate School of Finance (April 7th), the Systemic Risk Centre of the London School of Economics (May 24th) and the Symposium of the European Research Group on Money, Banking and Finance at the Banque de France in June 11-13th, for presentation and discussion. (April 3rd)
 
AprilJUBILANT STOCK MARKETS IN SHARP CONTRAST TO DETERIORATING PANDEMIC SITUATION IN EUROPE. With the tail winds of US stock markets European stock markets reach all time highs despite more than lacklustre pandemic management. Meanwhile WHO warns that slow vaccine roll-out not only prolongs the pandemic but enhances the risk of further mutations and, hence, growing ineffectiveness of currently available vaccines. “Vaccines present our best way out of this pandemic. Not only do they work, they are also highly effective in preventing infection. However, the roll-out of these vaccines is unacceptably slow. And as long as coverage remains low, we need to apply the same public health and social measures as we have in the past, to compensate for delayed schedules. Let me be clear: we must speed up the process by ramping up manufacturing, reducing barriers to administering vaccines, and using every single vial we have in stock, now,” said Dr Hans Henri P. Kluge, WHO Regional Director for Europe. After all, unacceptable delays cost lives that could have been saved with determined action! (April 1st)
 
MarchEconometric Society: The paper on "Intermediation and Price Volatility" (joint with Klaus Ritzberger, Royal Holloway, UK) has been accepted for presentation at the North American Summer Meeting (Montreal) as well as the Australian Summer Meeting (Melbourne)of the Econometric Society. Moreover, the paper on "Social Responsibility and Bank Resiliency" (joint with Maria Chiara Iannino, St. Andrews, UK and Stephan Unger, Saint Anselm, US) has been accepted for presentation at the Annual Conference of the European Financial Management Association in Leeds, the Annual Conference of the Austrian Economic Association (NOeG) in Innsbruck and the Second Sustainable Finance Forum in Shanghai. (March 26th)
 
MarchWITH ONE YEAR IN THE PANDEMIC AND HUNDREDS OF BILLIONS INVESTED IN SUPPORT MEASURES CONTINENTAL EUROPE IS STILL - PASSIVELY - WAITING FOR SUFFICIENT SUPPLY OF VACCINES. Johns-Hopkins University (check "Global Map") regrettably reported that mortalities in the 27 states of the EU have exceeded 580.000, while the 50 states of the U.S.A passed the 530.000 mark. The former EU-28 member UK has passed the 125.000 mark. A silver lining exists in the US, since the President of the USA announced being able to offer a vaccination to all US citizens by May 2021. In contrast, European solidarity is facing a real stress test that it seems to be loosing on (too) many levels in consequence of increasingly disappointing pandemic management performance, both in the public as well as in the private sector. (Mar. 14th)
 
MarchWILL CZECHIA HAVE SEEN THE WORST BY MAY? Former member of the Freiburg research team and co-author Rene Levinsky (CERGE, Prag) comments on the Corona experience in Czechia and Germany. (March 9th)
 
MarchPAPER ON JOURNAL COMPETITION AND THE QUALITY OF PUBLISHED RESEARCH IS ONLINE: The paper "Journal Competition and the Quality of Published Research: Simultaneous versus Sequential Screening" (International Journal of Industrial Organization 76 (2021)) by Thomas Gehrig and Rune Stenbacka (HECER, Helsinki, Finland) is online. The paper answers the questions of i) how to explain the huge and ever more decreasing delay in publishing in top-journals in the social sciences, ii) how to explain the strikingly higher rejection rates in the social sciences relative to the sciences, and, finally iii) why scholarly articles typically are submitted to several law journals simultaneously, while strong exclusivity requirements are enforced in the sciences and social sciences. The article provides explanations based on information production and societal costs of false positives and false negatives during the evaluation process. (March 6th)
 
MarchSPEED MATTERS IN VIRUS RESPONSE: US PRESIDENT JOE BIDEN PROMISES VACCINATION TO ALL AMERICANS UNTIL MAY 2021. When will Europe live up to the challenge? The virus is with us since more than a year and Europe still struggles to survive on the basis of passive, and increasingly ineffective lock-down strategies while the virus is multiplying into many more effective mutations. While the US is well ahead of its original plan as of Jan. 21, 2021, Europe appears still complacent. The tiring debates about priority rules and opening strategies dominating public sphere in the media reflect the inability to produce and distribute vaccines in sufficient numbers (The vaccine is actually applied in large numbers in UK, USA, Israel, Chile, Russia, China, India, Turkey, ...). Rapid vaccination is top priority and renders many such debates lower order priority, if not dismissible. (March. 3rd)
 
FebruaryHOW TO EXPLAIN INCREASING PRICE VOLATILITY IN FAST MARKETS? In principle, high-frequency trading allows to arbitrage price differentials across trading platforms ever faster. Nevertheless, empirically short-term price volatility is increasing in faster markets. In their discussion paper on "Intermediation and Price Volatility" (CEPR-DP. 15848 ) Thomas Gehrig and Klaus Ritzberger (Royal Holloway, UK) provide answers based on strategic price setting behaviour and equilibrium investments in fast trading technology.
 
FebruaryVIRUS AHEAD OF PASSIVE EUROPEAN PANDEMIC MANAGEMENT. Despite harsh lock-down measures in Continental Europe incidence numbers are on the rise again due to rapid virus mutations. Nevertheless, Continental Europe still is wasting time in producing and applying vaccines. In Germany alone 1 million of Astra Zeneca doses are waiting for being applied because of lack of interest and ineffective priority planning. Meanwhile a new even more infectious mutation has been detected and analysed in California. The Pandemic is real, people are dying, companies are exiting the market. When will Europe wake up to the challenge and start acting forcefully? (Feb. 24th, 2021)
 
FebruaryWHILE THE USA MOURNS HALF A MILLION OF COVID-RELATED MORTALITIES THE EU IS SILENT ABOUT AN EVEN LARGER NUMBER OF VICTIMS FOR ITS 27 CONSTITUENT COUNTRIES COMBINED. According to Johns-Hopkins University regrettably reported mortalities in the 27 states of the EU have exceeded 505.000, while the 50 states of the U.S.A passed the 500.000 mark. The former EU-28 member UK has passed the 120.000 mark.(Feb. 23rd, 2021)
 
FebruaryDOES THE NATURE OF LIQUIDITY DEMAND MATTER FOR BANK BUSINESS MODELS AND THE NATURE OF PRUDENTIAL BANK REGULATION? Liquidity may be demanded for different reasons such as unforeseen consumption needs, but also because of surprise options for investment. In such a more general model the answer unsurprisingly is a distinct YES. In their discussion paper on "Speculative and Precautionary Demand for Liquidity in Competitive Banking Economies" (CEPR-DP.15827, London, UK) Diemo Dietrich (Newcastle U., UK) and Thomas Gehrig analyse the implications of the heterogeneity of the sources of liquidity demand. Based on their analysis, the implications for the prudential regulation of banks differ significantly across business models. In particular, prudential regulation of banks may need to differentiate substantially across commercial banks and investment banks.
 
FebruaryDOES SOCIAL RESPONSIBILITY INCREASE BANK RESILIENCY? In their empirical study on "Social Responsibility and Bank Resiliency" (CEPR-DP. 15816, London, UK) Thomas Gehrig, Maria Chiara Iannino (University of St. Andrews, UK) and Stephan Unger (Saint Anselm College, NH/US) provide ample evidence that various components of so-called ESG-factors (E-environment and economy, S-social, G-governance) do affect both, systemic as well as idiosyncratic risk of banks. While factors related to long-term orientation tend to moderate risk exposure, and, hence, enhance resiliency, short term factors such as short-term profitability tend to reduce resiliency. Moreover, significant transatlantic difference can be observed. Those are particularly striking for the organization of labor as well as the governance structure. The results hold qualitatively both for the former Thomson Reuter Asset 4-classification as well as the modern TR ESG Refinitiv rating system.
 
FebruaryHOW TO EXPLAIN THE HUGE HETEROGENEITY IN PUBLICATION CULTURES OF SCHOLARLY RESEARCH ACROSS ACADEMIC DISCIPLINES? How to explain the huge and ever more decreasing delay in publishing in top-journals in the social sciences? How to explain the strikingly higher rejection rates in the social sciences relative to the sciences? Why are scholarly articles typically submitted to several law journals simultaneously, while strong exclusivity requirements are enforced in the sciences and social sciences? In their article on "Journal Competition and the Quality of Published Research: Simultaneous versus Sequential Screening" (forthcoming International Journal of Industrial Organization) Thomas Gehrig and Rune Stenbacka (HECER, Helsinki, Finland) provide some explanations based on information production and societal costs of type-I and type-II errors.
 
FebruaryMASTER IN BANKING & FINANCE: Three excellent empirically oriented master theses have been submitted in January 2021. Their topics are: (1)"The Impact of Short Sale Bans on Stocks: European Evidence", (2) "The Effects of Green Bond Issuances on Stock Prices" and (3) "Explaining hedge fund returns through factor models". Congratulations to the authors!
 
FebruaryLACK OF RESILIENCY IN THE HEALTH SECTOR: Germany, the former "pharmacy of the world" is lacking production capacities to protect its citizens as well as those of its EU-partners in a timely fashion against Covid-19 despite the imminent threat of rapid virus mutations. The debacle of the German vaccination strategy - as well as the largely passive strategies of the European partners - showcases the lack of resiliency of modern global pharmaceutical supply chains against pandemic events: minimizing production costs in global supply chains compromises national resilience such that pandemic outbreaks impose huge costs of life as well as on society. Incidentally, the pandemic only highlights the lack of resiliency that was already apparent well before the outbreak of Covid-19, since a wide range of medical supply suffers severe bottleneck-problems due to the outsourcing of essential production along the production chains. (Feb. 2nd, 2021)
 
JanuaryACTIVE ANTI-COVID STRATEGY IN THE US CONTRASTS SHARPLY WITH PASSIVE EUROPEAN LOCK-DOWN STRATEGY. At a death toll of more than 410.000 people the US engages in an active COVID-19 Response Strategy, while at a death toll of more than 440.000 people - and the UK experience with a death toll of more than 95.000 - the EU continues to extending its predominantly passive lock-down strategy just short of closing borders again. Passive lock-down and active vaccination can be strategic complements only in the very short-term, when vaccination is performed swiftly enough to prevent virus mutations. An active vaccination strategy may also require emergency production (see goal 4 of the US response strategy) in case the private sector cannot handle demand effectively. Otherwise, passive lock-down and active vaccination turn into strategic substitutes in the long run. Then the question arises about which strategy imposes the higher death toll (plus economic costs) in the long run. (Jan. 23rd, 2021)
 
JanuaryTHE NEW US GOVERNMENT'S ECONOMIC RESCUE PACKAGE INVESTS HEAVILY IN VACCINE PRODUCTION AND RAPID TESTING CAPACITIES. The US Stimulus Plan of the newly elected president Joe Biden includes spending of USD 70 billion specifically for vaccine development and production (20) and improved testing (50). The COVID-19 Relief Package already dedicated USD 68 billion for testing and vaccine development in March 2020, which contributed to developing the BioNTech-Pfizer and Moderna vaccines. The second Stimulus Package of December 2020 included another USD 40 billion for vaccine production and testing. The EU Recovery Package remains less specific on the contributions towards vaccine production and testing. Europe urgently needs to increase its ability to act swiftly and decisively in order to suppress the virus and to frontrun further mutations of this malign and treacherous virus. (Jan. 15th, 2021)
 
JanuaryDESPITE HIGHEST REPORTED DEATH COUNTS AND PIONEERING VACCINE DEVELOPMENT EU IS SLOW IN GETTING STARTED ON VACCINATIONS. According to Johns-Hopkins University reported mortalities in the 27 states of the EU have exceeded 370.000, while the 50 states of the U.S.A stand at 350.000 (as of Jan. 3rd.2021). Still a sense of urgency seems missing within the EU administration, while the CDC has administered 4.2 million of vaccinations already by Jan. 2nd in the U.S. In addition to the regrettable expected excess loss of lives the hesitant start into the vaccination campaign implies huge budgetary burdens. According to Professor Kocher, the president of the IHS, each week of lock down will cost an additional 1-1.5 billion EUR for Austria alone (see ORF-statement of Nov. 16, 2020), which is just one of the 27 (remaining) member states. This provides for strong economic incentives to invest in Covid-19 vaccine production capabilities at the European level. Solidarity does not require delay but swift common action. Outside the EU vaccinations are under way at high speed with expensive vaccines from BioNTech, Moderna and meanwhile also with the lower priced Astra Zeneca vaccine, based on a more traditional technology. (Jan. 3rd, 2021)
 
January Master in Banking & Finance: The master seminar in summer 2021 will focus on "Economic and Financial Resiliency". Resiliency is the ability of organizations and economies to regain strength after an economic or financial crisis. With hindsight we can witness that U.S. banks did regain competitiveness after the Great Financial Crisis of 2007/8, while European banks at large are still battling with its long-run consequences at the onset of the next and even more serious pandemic crisis of 2020. Which are the sources of resiliency? What is the role of the ability to recapitalize? Which are the economic costs of resiliency, both at the level of corporations (banks, hospitals, producers, ...) as well as on the level of the state(s) (supervision, health policy, security of supplies, ...)? How does resiliency relate to (cost) efficiency? How does "globalization" affect resiliency?
 
January HAPPY NEW YEAR!
 
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2020

December The Special Issue "Digital Transformation" has appeared in Business Research Vol. 13(3), December 2020. It consists of an Editorial and 10 authoritative research articles contributing to the core theme of the Annual Conference of the German Association for Business Research in Frankfurt in March 2020. Due to the pandemic events this conference had to be transformed within a few weeks from a large on-site conference into a complete online format. This turned into a pioneering event right at the start of the Corona pandemic. The Special Issue also marks the transition of the pioneering open access journal Business Research to Schmalenbach Journal of Business Research - SBUR, the joint academic journal of the German Association for Business Research and the Schmalenbach Association.
 
DecemberEUROPE IN THE CENTER OF THE PANDEMIC: According to Johns-Hopkins University reported daily reported mortalities have reached more than 4.000 for the EU-region (without UK) in December outnumbering the mortalities in the US (of more than 3.000 daily) by a large margin (as of Dec. 16). The total death count regrettably has almost reached 14.000 worldwide per day. By comparison the 9/11 terror attack resulted in close to 3.000 direct mortalities. Nevertheless, a real sense of urgency seems to be missing in this long lasting pandemic situation. European fragmentation certainly contributes to reducing awareness by breaking down aggregate European death tolls and directing public attention to much smaller and possibly more "acceptable" numbers at the national level. At the height of the pandemic Europe is still longing for the emergence of a truly common and effective European response. At least, the vaccine that has been developed in Europe and is currently already being applied under emergency conditions in the UK and the US has been promised to become available for high risk groups in Europe in 10 days (from Dec. 27th according to President Von der Leyen).
 
December Due to the PANDEMIC DEVELOPMENTS this year the conference on Ethics of Business, Trade and Global Governance: Online Conference will take place virtually at Dec. 4th by Saint Anselm College. It is the third conference in a series organized jointly with Department of Finance, University Vienna and the Center for Responsible Banking & Finance (UK) of University of St. Andrews. The earlier conferences had been organized in Portsmouth/NH (2018) and Klosterneuburg (2019).
 
November The Deutsche Forschungsgemeinschaft (DFG) supports joint research with Özlem Dursun-de Neef (Johann Wolfgang Goethe-Universität, Frankfurt) on "Market Competition and Bank Capital" from 2021 to 2024.
 
NovemberSECOND WAVE IS ACCELERATING: Meanwhile in Austria the Covid-19 related death count significantly exceeds the high of April 8th of 30 persons on a constant daily basis (Regrettably the count stands at 65 in Austria and 1381 in the USA at Nov.11th 2020). According to Johns-Hopkins University reported infections worldwide reach new highs, 644.673 at November 11th, 2020, while daily reported mortalities have (substantially) increased to 10.415 worldwide. (Revised numbers as of 20 Nov 2020).
 
November Paper on "Performance of Characteristics-Based Portfolio Choice" will be the opening presentation at the Annual Conference 2020 of the Austrian Working Group in Banking and Finance (AWG 2020) in Graz (online).
 
OctoberREPORTED NEW INFECTIONS EXCEED HALF A MILLION PER DAY GLOABLLY: According to Johns-Hopkins University reported infections reach new highs, 506.570 at October 24th, 2020, while daily reported mortalities have (slightly) increased to 6.956 worldwide.
 
OctoberThe Nobel Memorial Prize in Economic Sciences has been awarded to Robert Wilson and Paul Milgrom for their pioneering and foundational work on common-value auctions (Wilson) and private-value auctions (Milgrom). Auctions have taken public prominence since the first radio frequency allotment auctions of the FCC in 1994, but auction mechanisms are more broadly used in economics. Further prominent examples are procurement auctions, arts auctions or money tender auctions. Auctions are also (widely) used in the health system and in non-monetary contexts more generally. In Finance auctions are important at the IPO stage or in merger and takeover contests for corporate control, as well as in the trading context in form of batch auctions or continuous (trading) auctions. (Research on double-auctions, a related market design, had already been awarded in 2002 with the Nobel Memorial Prize to Vernon Smith.) Congratulations for the long-deserved award!
 
October CANCELLED DUE TO THE PANDEMIC SITUATION "European Winter Finance Summit 2021". The next "Scinance"- meeting is planned for Spring 2022.
 
SeptemberGLOBAL PANDEMIC SITUATION IS DETERIORATING: Except for China, where it all began, the crisis is still not under control. According to Johns-Hopkins University reported infections reach new highs, 361.000 at September 24, and daily reported mortalities remain roughly constant at more than 5000 worldwide on a weakly average, despite improving medical treatment options.
 
SeptemberWKÖ-Professorship in Money and Capital Markets: Professor Dres. h.c. mult. Martin Hellwig, PhD (MPI Bonn) will offer a doctoral course on "Geld und Banken - Systemrisiken und Makroökonomie" in March 2021. This is the inaugural course into a series of courses on topics pioneered by economists of the Austrian School at the University of Vienna (esp. Eugen Böhm von Bawerk, 1851-1914, Ludwig von Mises, 1881-1973 and Friedrich August von Hayek, 1899-1992) and discussed in the light of the current state of research. This series is generously funded by the Wirtschaftskammer Wien - WKO .
 
September Master in Banking & Finance: The master seminar in winter 2020/21 will focus on "Climate Risk". The seminar provides an overview of the implications of climate risk on financial markets as well as the overall economy. Market reactions as well as market failures are addressed including policy options of financial markets (and monetary policy) to stimulate substitution to sustainable economic models of production and consumption. Students are given the opportunity for their own data-based explorations.
 
September We welcome Stefanie Schräder as an assistant professor in our Department. Stefanie joins us from the University of New South Wales (UNSW), Sydney. She holds a PhD of the University of Lausanne and has broad expertise in the field of behavioural finance.
 
AugustGLOBAL PANDEMIC SITUATION STILL NOT UNDER CONTROL: Daily reported infections worldwide (as of August 15th, 2020), presented by Johns-Hopkins University (Baltimore). Global reported death rates (as of August 15th, 2020) remain on a constantly high level - slightly higher than in May and June - of more than 5000 deaths per day globally.
 
July Call for Papers "2021 Swiss Winter Conference on Financial Intermediation", Lenzerheide, from Mar. 28th - 31st, 2021. Submission deadline: Oct. 30th, 2020.
 
JulyPOSTPONED DUE TO THE UNSTABLE SITUATION CAUSED BY THE CORONA VIRUS: The 10th Workshop "Banks and Financial Markets", organized by Thomas Gehrig, Michael Koetter, Thilo Pausch and Peter Welzel at Leibniz-Institut für Wirtschaftsforschung Halle (IWH), will be deferred to 2021. New details will be communicated later this year.
 
JulyGLOBAL PANDEMIC SITUATION IS DETERIORATING: Daily infections worldwide (as of July 1st, 2020), reported by Johns-Hopkins University (Baltimore). Also - according to the same data base of JHU - reported daily infections in Austria are up to three-digit levels again, and first time after mid-April. Due to the limitations of cross-border travel, the virus can only spread locally (or on national levels) currently. Therefore, local containment strategies continue to remain first-order priorities everywhere!
 
July DEFERRED DUE TO CORONA VIRUS: European Summer Symposium in Economic Theory (ESSET 2020), Gerzensee deferred to Juy 2021. Originally scheduled session: "Value and Cost of Information Gathering and Processing": Substantially revised (dynamic) version of "Journal Competition and the Quality of Published Research: Simultaneous versus Sequential Screening".
 
JuneCORONA UPDATE: While the pandemic situation on average is improving in Europe it is continuously deteriorating on a global level. The number of reported infections world wide are still increasing at an alarming level (well above 100k per day) despite the widely imposed limitations on cross-country mobility. For continuous updates and reports see the websites of Robert Koch Institut (Berlin), Johns-Hopkins University (Baltimore), and the World Health Organization - WHO (Geneva).
 
June ADOPTED DUE TO CORONA VIRUS: Master in Banking & Finance - The general discussion including the final presentation of the seminar Basel Regulation and Bank Resiliency (jointly with Mag. Victoria Pagowski, Österreichischer Genossenschaftsverband - ÖGV) will take place at the premises of ÖVG at Löwelstrasse 14 at June 23rd, from 8 a.m.-2 p.m. Participants subject to travel or health restrictions can participate remotely via online tools.
 
JuneCall for Papers for 3nd Transatlantic Conference on "Ethics of Business, Trade and Governance" at Saint Anselm College (Manchester, NH) will be held online on December 4th, 2020. This is the third conference of a series of conferences organized on ethical topics jointly in cooperation by St. Anselm College, Center for Ethics in Business and Governance (USA) , the Center for Responsible Banking & Finance (UK) of University of St. Andrews and the Department of Finance of the University of Vienna. (The last conference in this series on "Data & Ethics" took place in Klosterneuburg in November 2019.) Submission deadline: September 15th, 2020.
 
June The discussion paper "Are banks capital requirements optimally set?" summarizes the findings of the Bank of Finland Survey on Capital Requirements .
 
JuneREMINDER: Interesting webinar series "The economic implications of COVID-19" offered by the Bendheim Center for Finance at Princeton University.
 
May The Faculty of Business, Economics and Statistics has started to concentrate its internationally successful activities in structured doctoral education under the umbrella of the Oskar Morgenstern Doctoral School - OMDS. Subject to approval by the University, the School will start operations in September with five tracks: Economics (VGSE), Finance (VGSF), Management (PhD-M), Statistics (Abraham Wald) and Business Analytics, Logistics and Operations Research (BALOR).
 
May POSTPONED DUE TO CORONA VIRUS: Jean Pierre Danthine (Paris School of Economics) ÖNB Visiting Professor at the Faculty. Professor Danthine is teaching a Seminar on "Central banking: lessons from the crisis and its aftermath". Jean Pierre Danthine has been a Professor of Macroeconomics and Finance at HEC Lausanne from 1980-2009. He was the founding president of the Swiss Finance Institute from 2006-2009, a board member of the Swiss National Bank (2010-2015), as well as Vice-President from 2012-2015. Since 2015 he is directing the PSE in Paris.
 
MayADOPTED DUE TO CORONA VIRUS: Professor Diemo Dietrich (Newcastle University) will be visiting the Department of Finance in May. He will conduct research with Thomas Gehrig on bank capital. Research will be conducted online.
 
MayEUROPEAN ECONOMIC ASSOCIATION: Due to the pandemic EEA 2020 (Rotterdam) is going virtual and will be transformed into the digital space.
 
AprilECONOMETRIC SOCIETY: Due to the pandemic the WORLD CONGRESS 2020 (Bocconi) will be transformed completely into the digital space.
 
AprilEUROPEAN FINANCE ASSOCIATION: Due to the pandemic EFA 2020 (Helsinki) is going virtual and will be transformed into the digital space.
 
AprilCANCELLED DUE TO CORONA VIRUS: Professor Cars Hommes (University of Amsterdam) will give the second Dockner Lecture on "Complex Economic Dynamics" on April 28th at 4pm in the Skylounge at Oskar-Morgenstern-Platz 1. This is the second of a series of lectures scheduled to alternate annually between TU, University of Vienna and WU. Engelbert Dockner (1958-2017) has been a highly esteemed member of the faculty from 1993-2008 and a founding father of the Vienna Graduate School of Finance - VGSF. He has been an exceptional friend and colleague.
 
AprilFINANCE RESEARCH SEMINAR MOVES ONLINE: Thierry Foucault (HEC) will start the online version of the Finance Research Seminar on April 24th.
 
AprilPOSTPONED DUE TO CORONA VIRUS: Distinguished Lecture Series: Evidence from the Field - The SEC-Experiment on Short-Sale Bans, Law Faculty, University of Vienna.
 
AprilCEPR LAUNCHES WEBSITE FOR COVID-19 RESEARCH: The Center for Economic Policy Research (London) collects research and videos on Covid-Economics.
 
MarchCOVID-19 WEBINARS: Interesting webinar series "The economic implications of COVID-19" offered by the Bendheim Center for Finance at Princeton University.
 
MarchPOSTPONED DUE TO CORONA VIRUS: EU-supported project with Walter Beckert (Birbeck College, University of London) on Vulnerable Consumers and Price Discrimination has been delayed to the second half of 2020. The project will fund a conference supported by Erasmus+.
 
March NEW ACADEMIC OPEN ACCESS JOURNAL for research in business studies: The Schmalenbach Journal of Business Research. This journal will constitute the joint top research outlet of the largest association of business economists (with more than 2600 members), the "German Academic Association for Business Research - VHB" and the traditional "Schmalenbach Gesellschaft für Betriebswirtschaft - SG" (with more than 600 members). For further details see VHB statement and Springer press release. The former journals of both societies, "Business Research - BUR" and "Schmalenbach Business Review - SBR" resp., will be merged into SBUR, edited jointly by Thomas Gehrig (U. Wien) and Alfred Wagenhofer (U. Graz). Informations about submissions for SBUR will follow shortly.
 
MarchCONTINUOUS UPDATES ON THE CORONA VIRUS by the Robert Koch Institut (Berlin), Johns-Hopkins University (Baltimore), and the World Health Organization - WHO (Geneva).
 
March COMPLETE UNIVERSITY SHUT-DOWN: "University of Vienna", measures effective from March 16th:
- Doctoral Studies: All examinations are cancelled. No scheduling of further examinations until the situation is back to normal.
- All lectures and seminars are moved to home-study. Students are informed about the literature to be read and prepared in home study.
- All meetings are transferred into digital space. No physical access possible to buildings and libraries.
 
March CANCELLED DUE TO CORONA PANDEMIC SITUATION: "Swiss Winter Conference on Financial Intermediation 2020", Lenzerheide, from Mar. 29th - Apr. 1st, 2020. Papers (and presentation slides) are made available online.
 
March CANCELLED DUE TO CORONA PANDEMIC SITUATION: Annual meeting of the "Committee for Industrial Economics", DICE-Düsseldorf at March 19/20th, 2020.
 
MarchVHB2020 FULLY DIGITALIZED: VHB-Annual Conference: "Digital Transformation", Frankfurt, 17.-20. March 2020 (about 800 registered participants). Due to the pandemic situation the conference will be fully digitalized (see the program here). Also ALL VHB committee and board meetings will take place in digital space. In the true sense of the word, digital transformation has become a necessary and timely response to current pandemic challenges.
Big Data, Cloud Computing, KI – Immer neue Entwicklungen in der digitalen Technologie ziehen erhebliche Veränderungen für den Alltag in Gesellschaft, Wirtschaft und Wissenschaft nach sich und stellen uns vor neue Herausforderungen. Wie kann die Betriebswirtschaftslehre als wissenschaftliche Disziplin auf diese Entwicklungen reagieren? Wie transformieren diese Erneuerungen die Betriebswirtschaftslehre in den Bereichen von Lehre und Forschung? Und welche Auswirkungen hat die Digitalisierung auf Unternehmen und Märkte? Mit dem Generalthema sollen auf der Jahrestagung des VHB 2020 eine breite Diskussion und kritische Auseinandersetzung dieser und weiterer Fragen angestoßen werden.
 
March CANCELLED DUE TO CORONA PANDEMIC SITUATION: "VGSF research seminars" with outside speakers cancelled for this month. Further cancellations are pending - keep posted!
 
MarchCORONA INDUCED ADAPTATION OF TEACHING PROGRAM: Master in Banking & Finance: Lecture on "Market Microstructure" transferred to home-learning until April 3 (provisionally). All required information, reading and exercises are available on Moodle. Course participants have been informed. Due to the dynamic situation also the scheduled April/May in-person group meetings may have to be moved to virtual alternatives. Keep posted!
 
MarchCORONA INDUCED ADAPTATION OF TEACHING PROGRAM: Master in Banking & Finance: Due to the current pandemic situation the in-person group meetings of the seminar "Basel Regulation and Bank Resiliency" at March 23rd (at the ÖGV, Löwelstrasse 14) and 30th (OMP 1) have been cancelled and are replaced by online resources in virtual space (home-learning). The topic allocation has been finalized for all 25 participants and is available on Moodle as well as supporting reading text and the seminar presentation slides of Mag. Victoria Pagowski (ÖGV) and Prof. Thomas Gehrig. Course participants have been informed. Due to the dynamic situation also the scheduled in-person group meetings for April and May may have to be moved to virtual alternatives. Keep posted!
 
February Professor Diemo Dietrich (Newcastle University) will be visiting in May. He will conduct research with Thomas Gehrig on bank capital.
 
FebruaryAssistant Professor Stephan Unger (St. Anselm College), a former assistant professor of the Finance Department, has been awarded tenure at St. Anselm College in Manchester (NH) and will be promoted to Associate Professor. Congratulations!
 
February Job Market Placement: Stefan Voigt (VGSF) will join the Economics Department at the University of Copenhagen as Assistant Professor. Congratulations!
 
FebruaryLike her predecessor in the function of chief economist, the Nobel laureate Paul Romer, former graduate of Freiburg University, Penny Goldberg (Yale University) leaves the World Bank after only 15 months in office.
 
February Call for Papers, 10th Workshop "Banks and Financial Markets", organized by Thomas Gehrig, Michael Koetter, Thilo Pausch and Peter Welzel at Leibniz-Institut für Wirtschaftsforschung Halle (IWH), October 1-2nd, 2020. Submission deadline: June 30th, 2020.
 
February Master in Banking & Finance: The program and list of topics are available for the master seminar in summer 2020 on "Basel Regulation and Bank Resiliency".
 
February BIS-Publication "Green Swan - Central Banking and Financial Stability in the Age of Climate Change" (P. Bolton, M. Despres, L. Pereira da Silva, F. Samama, R. Svartzman) places climate related risks in the focus of banking regulation. The book argues that central bank mandates should be extended to internalize climate related externalities because of (financial) stability concerns. Evidently it is easier to coordinate monetary policy than fiscal policy in the global economy.
 
January New Leibniz Institute: The Institute for Sustainable Finance for Europe - SAFE at the University of Frankfurt has started operations as an independent Institute of the Leibniz Association in January. Congratulations!
 
January Project Deal - Springer Nature Contract on Open Access Publishing: On 8 January 2020 Projekt DEAL entered into an agreement with Springer Nature for open access publishing. The second such agreement negotiated by Projekt DEAL is regarded as the world’s largest transformative Open Access agreement at the time of signing. With more than 13,000 scholarly articles by authors affiliated with German institutions accepted for publication each year in Springer Nature journals, the publisher disseminates a significant portion of Germany‘s research output. The DEAL-Springer Nature agreement enables Open Access publishing of articles in approximately 2,500 Springer Nature journals and offers participating institutions extensive access to the publisher’s journal portfolio.
 
January Professor Jean Pierre Danthine (Paris School of Economics) will be the ÖNB Visiting Professor in 2020. He will teach an advanced seminar on "Central banking: lessons from the crisis and its aftermath" in May.
 
January Master in Banking & Finance: The master seminar in summer 2020 will focus on "Basel Regulation and Bank Resiliency". It is organized in cooperation with Mag. Victoria Pagowski (Österreichischer Genossenschaftsverband // Schulze-Delitzsch). The seminar provides an introduction into a fact-based overview of the achievements of the Basel Process of Capital Regulation up to the Great Financial Crisis and discusses the Basel III reforms, preliminary evidence of their implications and the potential need for further reform. Students are given the opportunity for their own data-based explorations.
 
January Happy New Year!
 
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2019

December "Darf die Fiskalpolitik Geldgeschenke annehmen?", Blog: Der ökonomische Blick, Die Presse, 23.12.2019.
 
December "Aus der Krise nichts gelernt?", ÖFG Magazin 2019, Interview with Dieter Hönig, Dezember 2019.
 
December Presentation of "Journal Competition and the Quality of Published Research" at Helsinki Center for Economic Research, Helsinki, Finland.
 
December ESRB/ATC Workshop Wind of Change: Climate Risk and Dynamic Stress Testing hosted by OeNB, Vienna.
 
December Presentation of "Common Ownership and Portfolio Performance of Firms with Market Power" at Finance Seminar of Johann-Wolfgang-Goethe Universität, Frankfurt.
 
NovemberPanel: "Neuausrichtung der Forschungsförderung durch den Jubiläumsfonds der OeNB", Skylounge, OMP 1, November 2019.
 
November 2. Transatlantic Conference on "Data & Ethics" will take place at Stift Klosterneuburg, from Nov. 22nd - 23rd, 2019. Keynote speakers are Alessandro Acquisti (Carnegie Mellon), Henner Gimpel (Augsburg), Sarah Spiekermann (WU) and Andreas Suchanek (HHL Leipzig). It is organized by the Department of Finance, University Vienna in cooperation with St. Anselm College, Center for Ethics in Business and Governance (USA) and the Center for Responsible Banking & Finance (UK) of University of St. Andrews.
 
November The 9th Workshop "Banks and Financial Markets" will take place at the University of Vienna from November 14-15. Organizers: Thomas Gehrig and David Pothier (Wien), together with Thilo Pausch (Dt. Bundesbank), Peter Welzel (Augsburg) and Michael Kötter (IWH Halle).
 
October Research seminar on "Common Ownership and Portfolio Performance of Firms with Market Power" at University of St. Andrews, Scotland.
 
October Professor Christoph Engel (MPI Bonn) will give a lecture on "Property is Dummy Proof" at Oct. 15, 6pm in the Skylounge, OMP 1.
 
October Gerhard Gehrig, Professor Emeritus of Johann-Wolfgang-Goethe Universität Frankfurt turns 90. He is a pioneer of applied input-output analysis and constructed the first large scale computer-based input-output tables for Germany fifty years ago (G. Gehrig: Konstruktion von Input-Output Tabellen und - Modellen mit Hilfe elektronischer Datenverarbeitung, Ifo-Institut, München 1969). IO-tables are centre pieces of social accounting matrices and crucial elements for computable general equilibrium models as well as for determining indirect production effects in the calculation of ecological footprints. Theoretical foundations have been established by nobel-laureate (1973) Wassily Leontieff in 1936. G. Gehrig has supported various countries (esp. Portugal and Southern Africa but also others) in generating national input-output accounts. He has also developed interregional IO-tables and - among many others - was a contributor to an international conference at IIASA in 1979. Also in the field of Finance IO-tables have lately been applied, e.g. in the area of production asset pricing (e.g. Herskovic: "Networks in Production: Implications for Asset Pricing", Journal of Finance, 2018).
 
October The VGSF-Paper Reading course will be on Market Design . It focusses on opportunities and challenges that technological developments impart on trading places for financial securities such as fast trading, dark trading, blockchain etc. How will these technological opportunities transform trading processes? Who is likely to benefit and will society benefit at large from those innovations? Which are the associated risks? Is there a role for regulation? The course covers both theoretical mechanisms as well as empirical evidence. The topic of the OMP-lecture on search and matching will play a key role for understanding the relative contributions of organized (automated) auction markets and brokerage OTC-markets building on Rubinstein, Wolinsky, QJE 1987, Gehrig, JEMS 1993, Spulber, ReStud, 1996, Rust, Hall, JPE 2003, etc.
 
October Professor Christopher Pissarides (LSE) is the recipient of this year's Oskar Morgenstern Medal. Professor Pissarides is the School Professor of Economics and Political Science at the London School of Economics. He has been awarded the Sveriges Riks Bank Price in Economic Sciences in Memory of Alfred Nobel in 2010 together with Dale Mortensen (Northwestern University) (delivering a lecture on "Search and Matching Models of the Labor Market" at the University of Vienna in 2012) and Peter Diamond (MIT) for introducing search in the theory of labour (Mortensen, Pissarides) and product markets (Diamond).
 
September VGSF Conference, Vienna, September 13th, 2018.
 
September Professor Günter Strobl welcome back to Vienna! Günter has been a student at our faculty prior to working for his PhD at Wharton (U. Pennsylvania). He has been assistant professor at the University of North Carolina at Chapel Hill (US) before joining the Frankfurt School of Finance. Welcome back!
 
September VGSF welcomes new Ph.D. students Josef Pschorn und Dominik Walter from Copenhagen Business School and University of Mannheim, respectively.
 
AugustInvited lecture: Econometric Society - ESEM 2019 : "Did the Basel Process of Capital Regulation Enhance the Resiliency of European Banks?", Manchester (UK).
 
July Joint research grant with Walter Beckert (Birbeck College, University of London) on (Anti-)Competitive Effects of Behavioural Price Discrimination approved by Erasmus+.
 
July European Summer Symposium in Financial Markets (ESSFM), Gerzensee, Session Asset Pricing: "Making Parametric Portfolio Policies Work".
 
JulyCall for Papers for 2nd Transatlantic Conference on "Data & Ethics" at Stift Klosterneuburg, from Nov. 22nd - 23rd, 2019, organized by Department of Finance, University Vienna in cooperation with St. Anselm College, Center for Ethics in Business and Governance (USA) and the Center for Responsible Banking & Finance (UK) of University of St. Andrews. Submission deadline: Oct. 1st, 2019.
 
July Call for Papers, 9th Workshop "Banks and Financial Markets", Vienna, November 14-15th, 2019. Submission deadline: September 30th, 2019.
 
June Call for Papers "European Winter Finance Summit 2020", Zermatt, from Mar. 22nd - Mar 27th, 2020. Submission deadline: Oct. 20th, 2019.
 
June Call for Papers "Swiss Winter Conference on Financial Intermediation 2020", Lenzerheide, from Mar. 29th - Apr. 1st, 2020. Submission deadline: Oct. 15th, 2019.
 
JuneInvited lecture: International Risk Management Conference - IRMC 2019: "Did the Basel Process of Capital Regulation Enhance the Resiliency of European Banks?", Universita Bocconi, Milano.
 
June Panel: "Publikationsstrategien in der BWL", VHB-Tagung, Rostock, 13. Juni 2019.
 
June VHB-Annual Conference: "Services in Transition - Implications for Business Research", Rostock, 12-14. Juni 2019.
Nach Industrie 4.0 nun Service 4.0: Die technologische Entwicklung, insbesondere die Digitalisierung, stellt – neben den gesellschaftlichen Veränderungen – die Dienstleistungsbranche zunehmend vor Herausforderungen. Stichworte wie Big Data, Internet der Dinge, Personalisierung oder Kooperation in Netzwerken charakterisieren diese neue Welt. Dienstleister mit innovativen Ideen treten vermehrt in den Markt ein; etablierte Dienstleister müssen sich umorientieren. Geschäftsmodelle, die lange als erfolgsversprechend galten, erweisen sich als nicht mehr tragfähig. Viele Geschäftsprozesse müssen neu gestaltet werden. Selbst klassische Produktionsunternehmen werden zunehmend von einem Netzwerk von Dienstleistern ersetzt oder aus der Kombination von Dienstleistungen mit Sachleistungen entstehen neue, sogenannte hybride Leistungsbündel. Insoweit ist der skizzierte Wandel sogar branchenübergreifend. In den Vorträgen und Plenumsdiskussionen zum Generalthema wird der zentralen Frage nachgegangen, was diese Entwicklung für die betriebswirtschaftliche Forschung bedeutet. Inwieweit hat die Betriebswirtschaftslehre bereits Antworten?
 
May Public lecture on "Equilibrium Bitcoin pricing" by OeNB Visiting Professor Bruno Biais (HEC Paris) at Thursday May 23rd, 13:15-14.45 o'clock in Lecture Hall 6 (1 floor) of Oskar-Morgenstern-Platz 1, 1090 Wien.
 
May Kamingespräch on "Bitcoin and Cryptocurrencies - fad or game changer" between the OeNB Visiting Professor Bruno Biais (HEC Paris) and the Governor of the Austria National Bank, Professor Ewald Nowotny at Tuesday May 21st, 18 o'clock in the Skylounge of Oskar-Morgenstern-Platz 1, 1090 Wien.
 
May New Leibniz Institute in Frankfurt: SAFE - Sustainable Architecture for Finance in Europe: The LOEWE-Centre SAFE at the University of Frankfurt has been accepted to the Association of Leibniz Institutes, the Leibniz Gemeinschaft. The Leibniz Gemeinschaft funds 91 Institutes overall in Germany with 6 Institutes in Economics and Finance: CESifo (München), DIW (Berlin), IfW (Kiel), IWH (Halle), RWI (Essen), ZEW (Mannheim) and starting Jan. 1st 2020 with SAFE (Frankfurt) as the 7th member.
 
May The Special Issue "(Ir)Rationality of Decisions in Business Research and Decisions" has appeared in Business Research Vol. 12(1), April 2019. It consists of an Editorial and 12 authoritative research articles contributing to the core theme of the Annual Conference of the German Association for Business Research in Magdeburg in May 2018. The Special Issue editors are Alexander Dilger (WWU Münster), Thomas Gehrig (U Wien) and Marko Sarstedt (OvGU Magdeburg). Contributors include John Christensen (USD Odense), James Cox (Georgia State), Gerd Gigerenzer (MPI Berlin), Elena Katok (UT Dallas), Erich Kirchler (U. Wien), Joseph Hair (S. Alabama) and many more.
 
April The results of the Bank of Finland Survey on Capital Requirements are available now. The original motivation for this survey is presented in a VoxEU -blog.
 
AprilInvited lecture on "Common Ownership and Bank Business Models" at the "Ausschuss für Unternehmenstheorie" at the ZEW, Mannheim.
 
AprilWe are delighted to announce that Professor Günter Strobl will join our Department by September 1st! Günter, welcome back!
 
April Concluding Conference: "After the Crisis is Before the Crisis" of the Working Group "Finanzkrisen" of the Österreichische Forschungsgemeinschaft (ÖFG), Vienna from April 11-12th 2019. Keynote speakers are Professors Steven Ryan (NYU) and Hans-Werner Sinn (LMU). The policy panel includes MEP Prof. Othmar Karas, Director Mag. Helmut Ettl (FMA), Mag. Philip Reading (OeNB), Director Mag. Andreas Fleischmann (Raiffeisen NÖ-Wien) and Professor Josef Zechner (WU). Speakers include Professors Ernst Eberlein (Freiburg), Harald Hau (Geneva), Rainer Haselmann (SAFE-Frankfurt), Reinhard Neck (Klagenfurt), and Erik Theissen (Mannheim).
 
April Professor Ngo van Long (Mc Gill) will give the first Dockner Lecture on "International oligopoly with public investments in trade-facilitating infrastructures: a differential game approach" on April 10m at 4pm in the Böcklsaal of TU Wien. This is the first of a series of lectures that are scheduled to alternate annually between TU, University of Vienna and WU. Engelbert Dockner (1958-2017) has been a highly valued member of the faculty from 1993-2008 and a founding father of the Vienna Graduate School of Finance - VGSF. He has been an exceptional friend and colleague.
 
March 12th Swiss Winter Conference on Financial Intermediation, Lenzerheide.
 
MarchCall for Papers for 2. Transatlantic Conference on "Data & Ethics" at Stift Klosterneuburg, from Nov. 22nd - 23rd, 2019, organized by Department of Finance, University Vienna in cooperation with St. Anselm College, Center for Ethics in Business and Governance (USA) and the Center for Responsible Banking & Finance (UK) of University of St. Andrews.
 
March Kathy Yuan (LSE) Visiting Professor at the Finance Department. She teaches a graduate course on Money, Liquidity, Blockchain, and Cryptocurrency.
The research of Prof. Yuan focuses on developing new asset pricing theories with heterogeneous information and market frictions and testing their empirical implications. In the past few years, she has examined how crises spread through international financial markets and how introducing benchmark securities such as treasury bonds or stock indices improves the overall market liquidity. She is currently working on modeling systematic risk using network theory, studying higher order beliefs and strategic complementarities in the financial market, building dynamic and multi-asset REE models of asset prices with short-sale and borrowing constraints, constructing new metrics for performance evaluations, and developing new asset pricing tests based on revealed beliefs in investor portfolio holdings.
 
March International VGSF-Placements: Giorgio Ottonello has accepted an offer of the Universidade Nova in Lissabon and Asad Rauf has accepted an offer of a position of assistant professor at the Rijksuniversiteit Groningen. Maximilian Bredendieck will join Cornerstone Research in London. Congratulations!
 
March "Die Motivation von Zeitschriften an Open Access am Beispiel der Zeitschrift Business Research", Symposium zu 100 Jahre ZBW: Wirtschaftswissenschaften Digital - Chancen und Herausforderungen, Berlin.
 
March VHB-Arbeitstagung: Blockchain - Anwendungspotentiale und Forschungsherausforderungen, TU München.
 
MarchPresentation of "Overbanking in Europe at the Top" at the "Turmgespräch" of the Faculty of Business, Economics and Statistics, University Vienna.
 
February The Bank of Finland Survey on Capital Requirements is online. The motivation for this survey is presented in a VoxEU -blog.
 
February Master in Banking & Finance: The Advanced Seminar Special Topics in Asset Pricing will deal with topical issues such as implications of digitalization, network linkages, labor market reform, environmental sustainability and social security on asset prices. It will also address the role and drivers of asset bubbles as well as investor attitudes. Final presentations: June. 24th, 2019, 8-13 at Skylounge of OMP 1.
 
February Former department member Daniel Ruf (St. Gallen) has been appointed to a House of Finance Professorship (W1) in Real Estate Finance at the Johann-Wolfgang Goethe Universität in Frankfurt, sponsored by Helaba. Congratulations!
 
January Master in Banking & Finance Final Presentations of the seminar Financial Crises and Macroprudential Regulation (jointly with Dr. Stefan Kerbl, Österreichische Nationalbank, Financial Stability and Macroprudential Supervision). Jan. 28th, 2019, 8-13 at Skylounge of OMP 1.
 
January Bruno Biais (HEC Paris) ÖNB Visiting Professor at the Faculty. He is a specialist in market microstructure and corporate finance. Bruno was editor of the Review of Economic Studies and of the Journal of Finance. He is a fellow of the Econometric Society and the Finance Theory Group and has been scientific adviser to the NYSE, Euronext, European Central Bank and Bank of England.
 
January Happy New Year! Excellent sciing conditions at Turracher Höhe!
 
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2018

December Call for Papers for the Concluding Conference "After the Crisis is Before the Crisis" of the Working Group "Finanzkrisen" of the Österreichische Forschungsgemeinschaft (ÖFG), Vienna from April 11-12th 2019.
Has the resiliency of the financial system been adequately rebuilt ten years after the Great Financial Crisis so that a normalisation of monetary policy can be awaited with confidence? We invite submissions of current research papers on the financial crises, the resiliency of the financial system and/or on monetary policy and macroprudential regulation. Both theoretical and empirical work are welcome. Fact-based empirical evaluations of regulatory or monetary policy are particularly welcome. Professors Hans-Werner Sinn (LMU Munich) and Stephen Ryan (NYU) will deliver keynote speeches. Furthermore, an exciting high level policy panel with representatives of Finance, Politics, Supervision and Society will guarantee lively debates. We are looking forward to interesting contributions and lively discussions!
 
December The master thesis of Klaus Winhofer on "ECB-Cycles" has been nominated as a Top-10 Contender of the Erste Asset Management Challenge 2018. Congratulations! It has also been invited for presentation at the final competition.
 
DecemberPresentation of "Trust and Banks - Are Ethical Banks more Resilient?" at the Joint Interdisciplinary Conference in Portsmouth, New Hampshire, USA: on "The Ethics of Business, Trade & Global Governance" from Nov.30th - Dec.1st 2018 of Department of Finance, University Vienna in cooperation with St. Anselm College, Center for Ethics in Business and Governance (USA) and University of St. Andrews, Center for Responsible Banking & Finance (UK).
 
November The 2018 EBA stress tests widely reconfirm critical capital shortfall estimates of Gehrig and Iannino for European systemically important banks in the Bank of Finland Discussion Paper 2018-016 on Did the Basel Process of Capital Regulation Enhance the Resiliency of European Banks? . According to the EBA stress scenarios the largest capital shortfalls are observed for Barclays, Deutsche Bank, Societe Generale and other SIFIs that - with supervisory consent - are allowed IRB models to reduce their capital requirements. These are deposit taking institutions with large investment banking operations. Smaller banks (of the large banks), which includes Erste and Raiffeisen, are more resilient according to the EBA stress scenarios as well as according to the capital shortfall measures of Gehrig and Iannino (2018).
 
November New version of discussion paper Making Parametric Portfolio Policies Work, jointly written with Leopold Sögner (IHS) and Arne Westerkamp (Spängler IQAM Research).
 
November New discussion paper on Trust and Banks - Are Ethical Banks more Resilient?, jointly written with Maria Chiara Iannino (St. Andrews, UK) and Stephan Unger (St. Anselm, NH).
 
October New version of discussion paper on Journal Competition and the Quality of Published Research, jointly written with Rune Stenbacka (HECER, Helsinki).
 
October Keynote address: "Asset Pricing Implications of Industry 4.0" , CASiM-Workshop "Industry 4.0" at HHL Leipzig.
 
October The Handelshochschule Leipzig (HHL) celebrates its "120's Anniversary" at October 29th and 30th. Following the model of the civic university of the LSE, founded in 1895, together with Aachen and St. Gallen the HHL constitutes the first "Handelshochschulen" in the German speaking area that were funded in 1898 with private money. Unlike the Handelshochschulen in Aachen, Cologne (1901), Frankfurt (1901), Berlin (1906), Mannheim (1908), München (1910), Königsberg (1915) und Nürnberg (1919), which mostly became integrated with the public universities shortly after their foundation, the Handelshochschule Leipzig remained independent until 1946, when it became integrated into the University of Leipzig. In 1992 it was re-founded as an independent university. (Interestingly, or coincidentally, in the very same year 1898 the Wirtschaftsuniversität-WU was also founded as the k.k Exportakademie and started operations in the Palais Festetics (Bergstrasse) before it was renamed to Hochschule für Welthandel in 1916 and to Wirtschaftsuniversität in 1975.)
 
October 8th Workshop "Banks and Financial Markets" at the University of Augsburg. Organizers: Thomas Gehrig (Wien), Thilo Pausch (Dt. Bundesbank) and Peter Welzel (Augsburg).
 
October Master in Banking & Finance Seminar: Financial Crises and Macroprudential Regulation (jointly with Dr. Stefan Kerbl, Österreichische Nationalbank, Financial Stability and Macroprudential Supervision). Kickoff meeting: Oct 1st, 3-4.30pm, SR 4 OMP 1. Final presentations with discussion, Jan. 28th, 2019, 8-13 at Skylounge of OMP 1.
Ten years after the Great Financial Crisis (GFC) economic conditions seem to repeat themselves; monetary policy tightening starts in the US and Europe seems to follow with some lag, interest rates are on the rise, stock market valuations are high but volatile, real estate markets are in bubble conditions, securitization activity reaches historically high levels, etc. etc. Are the Western economies better prepared this time to deal with rising interest rates? Have the lessons of the GFC been learned and has the financial systems been amended sufficiently in order to be able to deal with the challenges of stricter monetary policy ahead?
 
September Revised discussion paper on Did the Basel Process of capital regulation enhance the resiliency of European Banks?, jointly written with Maria Chiara Iannino (St. Andrews), has been published as Bank of Finland Research Discussion Paper 16-2018.
 
September VGSF Conference, Vienna, September 25th, 2018.
 
September We welcome Borys Koval and Saman Adhami as new VGSF-doctoral student at our Department!
 
September We welcome Christian Westheide as new assistant professor in our Department! Christian joins us from a joint position at the University of Mannheim and SAFE-Frankfurt. He holds a PhD from the University of Bonn.
 
September 19. GEABA-Symposium zur ökonomischen Analyse der Unternehmung, Discussion of Sabine Böckem and Ulf Schiller: "Bank Runs and Accounting for Illiquid Bank Assets", Frankfurt, September 20-21st, 2018.
 
September Call for Papers "12th Swiss Winter Conference on Financial Intermediation", Lenzerheide, from Mar. 31st - Apr. 4th, 2019. Submission deadline: Oct. 15th, 2018.
 
SeptemberSergey Zhuk is moving on and will leave us to start employment at the Russian Presidential Academy of National Economy and Public Administration. We wish him good luck! At the Department he taught courses on "Behavioral Finance", "Fixed Income" and "Market Microstructure". Recently he published his joint work with Martin Schmalz on "Revealing Downturns" in The Review of Financial Studies.
 
August The paper on Capital Regulation and Systemic Risk in the Insurance Sector, jointly written with Maria Chiara Iannino (St. Andrews), has been published in the Journal of Financial and Economic Policy.
 
August Research Summer Workshop 2018, Bank of Finland, Kallvik, "Political Favoritism and Industrial Structure in Banking".
 
AugustBank of Finland, Helsinki, Visiting Scholar. Research project on "Industrial Structure and Systemic Risk in the European Financial Sector."
 
August Call for Papers, 8th Workshop Banks and Financial Markets, Augsburg, October 25-26th, 2018.
 
July European Summer Symposium in Financial Markets (ESSFM), Gerzensee, Session Asset Pricing: "Crossing Networks, Proprietary Trading and Price Discovery".
 
July IFABS: Ten Years after the 2008 Financial Crisis - Where Are We Heading Now?, Porto: "Did the Basel Process of Capital Regulation Enhance the Resiliency of European Banks?" (presented by Maria Chiara Iannino).
 
June Special Issue of Business Research on "Services in Transition - Implications for Business Research" (Guest Editors: Wolfgang Burr and Susanne Homölle). This call relates to the general theme of the 81st Annual Conference of the Verband der Hochschullehrer in Betriebswirtschaft (VHB) in Rostock, June 12-14th, 2019.
 
June Studienstiftung des Deutschen Volkes, Stipendiaten machen Programm: "Reform der Eurozone: 10 Jahre Finanzkrise - europäische Lehren für Finanzmarktstabilität und Geldpolitik" mit Präsentationen bei BaFin, Deutscher Bundesbank und EZB, Frankfurt. (Gemeinsam mit Oliver Landmann, Universität Freiburg, sowie Katja Bertelsmann, SAFE Frankfurt und Eva Neumann, Bucerius Law School, Hamburg.)
 
June EFMA, Milano: "Did the Basel Process of Capital Regulation Enhance the Resiliency of European Banks?" (presented by Maria Chiara Iannino).
 
June 6th CEPR Symposium in Economic History, Banca d'Italia, Roma: "Rumors and Runs in Opaque Markets: The Panic of 1907".
 
June Business Research: Call for Special Issue on "The Ethics of Business, Trade & Global Governance" (special issue editors Leonidas Barbopoulos, Adam Smith Business School, Glasgow, Dina Frutos-Bencze, St. Anselm College, and Thomas Gehrig, U. Vienna) in connection with the Conference from Nov.30th - Dec.1st 2018 in Portsmouth, New Hampshire (see CfP in February).
 
June Stefania Albanesi (University of Pittsburgh) ÖNB Visiting Professor at the Faculty.
 
March-May Visiting LSE, Department of Finance, London
 
May Bank of England-CEPR-Imperial: "Competition and Regulation in Financial Markets", Imperial College, London: "Political Favoritism and Industrial Structure in the Banking Sector".
 
My contribution argues that the competition-stability tradeoff cannot be addressed by means of symmetric models of banking competition, as is the current standard of the academic literature and policy debate. Any model that wants to speak to the understanding of the differential role of systemically important versus less systemically important banks needs to address the role of asymmetry and its endogenous emergence. The paper argues that (implicit) political support of SIFIs confers an unfair competitive advantage to precisely those banks that are deemed to be the most professional and profitable ones in normal times. Political support in troubled times essentially subsidizes funding costs of SIFIs with respect to their disadvantaged competitors with taxpayer money, effectively enhancing their competitive advantage. Media preference for sensation seeking and coverage of large problems at large banks over normality additionally biases public perception and political action. In consequence, TBTF guarantees and political favoritism invite excessive competition for TBTF status and the associated media attention. Furthermore, to the extent that political favoritism serves national interests, TBTF - alongside with local geographical information (Gehrig, 1998) - is a main obstacle to the integration of banking markets. Such a model provides a new explanation of the empirical European phenomenon of "overbanking" as a direct consequence of political favoritism.
 
May Appointment as Editor-in-Chief of Business Research for the period 2019-2022 by the German Academic Association for Business Research (VHB).
 
May VHB-Annual Conference: "(Ir)Rationality of Economic Decisions and Practice", Magdeburg. Business Research Panel: "The Curse of Rankings - Challenges for Academic Publishing" (with panelists Hans-Ulrich Buhl, Günter Fandel, Margit Osterloh and Peter Walgenbach), Session FI3 on "Bankenregulierung".
 
May X. Förderkongress: "Junge Wissenschaft und Wirtschaft", Hanns-Martin-Schleyer Stiftung, Berlin. Nominierte Teilnehmer: Timo Haber (Cambridge), Philipp Heuermann (LSE und Peking), Clemens Krauss (LMU München).
 
May DFG-SAFE: "3rd International Conference on Financial Markets and Macroeconomic Performance", SAFE Frankfurt: "Did the Basel Process of Capital Regulation Enhance the Resiliency of European Banks?".
 
May Wards Finance Seminar, Adam Smith Business School, Glasgow: "Did the Basel Process of Capital Regulation Enhance the Resiliency of European Banks?".
 
April "3rd Annual CEPR Spring Symposium", Imperial College, London: "Crossing Networks, Proprietary Trading and Price Discovery".
 
April Another great VGSF-Placement: Thomas Rautter has accepted an offer of the Booth School, University of Chicago. Congratulations!
 
March Royal Holloway, Egham: "Political Favoritism and Industrial Structure in the Banking Sector".
 
March Bank of England, London: "Did the Basel Process of Capital Regulation Enhance the Resiliency of European Banks?".
 
March European Winter Finance Summit, St. Moritz: "Did the Basel Process of Capital Regulation Enhance the Resiliency of European Banks?"
 
February VGSF-Graduate Özlem Dursun-de Neef has succeeded in publishing her job market paper "The Transmission of Bank Liquidity Shocks: Evidence from House Prices" in the Review of Finance. Moreover, she has been appointed as Junior-Professor for Sustainable Banking at the Johann-Wolfgang Goethe Universität in Frankfurt. Congratulations!
 
February International VGSF-Placements: Akos Horvath has accepted an offer of the Board of Governors of the U.S. Federal Reserve System in Washington D.C., Roman Goncharenko has accepted an offer of a position of assistant professor at the Katholieke Universiteit de Leuven (Belgium) and Roberto Pinto has accepted a lecturer appointment at the University of Lancaster Management School (UK). Congratulations!
 
February Portsmouth, New Hampshire, USA: Call for Papers for joint Interdisciplinary Conference on "The Ethics of Business, Trade & Global Governance" from Nov.30th - Dec.1st 2018 of Department of Finance, University Vienna in cooperation with St. Anselm College, Center for Ethics in Business and Governance (USA) and University of St. Andrews, Center for Responsible Banking & Finance (UK).
 
JanuaryOtto-von-Guericke Universität, Magdeburg: Anmeldung zur 80. Jahrestagung des VHB unter dem Motto. (Ir)Rationality of Decisions in Business Research and Practice vom 23.-25. Mai ab sofort möglich. Die Verbandzeitschrift Business Research gibt zum Schwerpunktthema einen Spezialband heraus.
 
JanuaryHumboldt-University, Berlin: Political Favoritism and Industrial Structure in the Banking Sector, Accounting and Finance Research Seminar.
 
January Abschlußveranstaltung Demokratie: Immer schwer, aber immer Zukunft mit den Altpräsidenten Heinz Fischer und Joachim Gauck zur Semesterfrage 2017/18: Was ist uns Demokratie Wert?
 
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2017

December Semesterfrage 2017/18: Was ist uns Demokratie Wert?: "Platzhirsche und National Champions gefährden die Demokratie", Interview with Marion Wittfeld, Medienportal der Universität Wien.
 
December Santiago Finance Workshop: "Did the Basel Process of Capital Regulation Enhance the Resiliency of European Banks?", Santiago de Chile.
One year after the transatlantic impasse between U.S. and European supervisors at the 19. International Conference of the Basel Committee on Banking Supervision in Santiago de Chile (at Nov.30/Dec.1, 2016) chaired by Stefan Ingves (Governor, Sveriges Riksbank) and supervised by the Group of Governors and Heads of Supervision (chaired by Mario Draghi, President of the ECB), our work presents empirical evidence that on average European (systemic) banks employed internal risk based models mainly to increase short term payout (dividends, stock repurchases, ...) rather than to increase long-term prudential risk absorption abilities. These business models are reflected in relatively low market valuations of European bank stocks.
 
November Excellent news for VGSF: doc.funds application has been approved by FWF. After 4 successful funding periods as a Doktoratskolleg of the FWF (since 2005), VGSF receives future funding support for the years 2018-2022 under the new pioneering doc.funds scheme.
VGSF has been among the first graduate schools in the social sciences in Austria that have applied a structured program to doctoral education. VGSF is based on collaborative education, co-teaching and co-supervision. It includes the University of Economics and Business, the Institute of Advanced Studies (IHS) and the University of Vienna as its institutional pillars. Its "founding fathers" are Engelbert Dockner (1958-2017), Klaus Ritzberger (now Royal Holloway, London, formerly IHS) and Josef Zechner.
 
October 7th Workshop "Banken und Finanzmärkte" at Schulungszentrum der Deutschen Bundesbank, Eltville. Organizers: Thomas Gehrig (Wien), Thilo Pausch (Dt. Bundesbank), Peter Welzel (Augsburg).
 
October Charles Calomiris (Columbia Business School) ÖNB Visiting Professor at the Faculty.
 
October We welcome Anton van Boxtel and David Pothier as new assistant professors in our Department! Anton joins from IHS and holds a Tilburg PhD. David joins from HU/DIW Berlin and holds a PhD of EUI Florence.
 
September Start of the Master of Banking & Finance: We welcome our first cohort of students!
 
September ESE 2017: Contribution "Industrial Structure and Systemic Risk in the Financial Sector" to the European Supervisor Education Initiative Conference at ÖNB on "Financial Supervision - Ready for future challenges?".
 
September ÖFG-Panel "Unintended Consequences of Financial Regulation" on the occasion of the Jahrestagung of German Economic Association at the University of Vienna with Claudia Buch (Deutsche Bundesbank), Martin Hellwig (MPI Bonn), Albrecht Ritschl (LSE). Organiser and moderator: Thomas Gehrig (Wien).
 
August Summer Academy of the Studienstiftung des Deutschen Volkes in St. Johann (Ahrntal), Working Group "Finanzmarktarchitektur, Öffentliche Finanzen und Geld: Welcher Reparaturen bedarf die Eurozone?" directed by Thomas Gehrig (Wien) and Oliver Landmann (Freiburg).
 
August European Finance Association, Mannheim: "Did the Basel Process of Capital Regulation Enhance the Resiliency of European Banks?" (joint with Maria Chiara Iannino, St. Andrews).