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New paper: When do foreign regulatory interventions trigger market disciplinary effects?
30.06.2026New paper: When do foreign regulatory interventions trigger market disciplinary effects?
FiRe member Andrea Schertler and her co-author Sandra Tillema recently publisehd a paper on the market disciplinary effects triggered by foreign regulatory interventions.
Abstract: We investigate under which circumstances foreign regulatory interventions in banks have market disciplinary effects like those of domestic interventions. We focus on the influence of banks’ dependence on the host country and their familiarity with local regulations. Based on hand-collected data about violations of anti-money laundering regulations by large European and North American banks, we find that, like domestic news, foreign news about regulatory interventions has a negative effect on stock prices and institutional holdings. Institutional investors’ divestitures are stronger for banks with greater dependence on the foreign regulator’s country. However, contrary to what might be expected according to the liability of foreignness literature, a bank’s lack of familiarity with the regulatory environment in the host country does not seem to play a role among the large banks that we investigated.
New paper: Effective establishment of circularity is key to achieving net zero
30.06.2026New paper: Effective establishment of circularity is key to achieving net zero
As part of the transdisciplinary research project INTEGRATE, the paper “Effective establishment of circularity is key to achieving net zero” was produced and has recently been accepted for publication in Ecological Economics.
While circularity has been emphasized as critical in realizing net zero greenhouse gas emissions, the necessary policies to achieve it are underrepresented worldwide. We suggest a scheme of specific steps in a transdisciplinary research process and evaluate respective policy implications across sustainability dimensions. We find that the integration across sectors and fields of action is needed to address the detailed material flow knowledge demands involved. Application of the scheme offers both practical insights on process details and core transition results.
FiRe member Roland Mestel and former FiRe member Michael Kueschnig contributed the Finance part of the paper, which was written in collaboration with colleagues from the Wegener Center at the University of Graz, the Graz University of Technology, the University of Innsbruck and the Austrian Environmental Agency.
New paper: Green Acquisitions
30.06.2026New paper: Green Acquisitions
FiRe members Andrea Schertler and Erik Theissen recently publisehd a paper on green acquisitions.
Abstract: Prior research suggests that investors value green firms at a premium. We add to this line of research and show that the acquirer’s cumulative abnormal return after the announcement of an acquisition is increasing in the “greenness” of the target. We find tentative evidence suggesting that this pattern is more pronounced after the 2015 Paris agreement, and is more pronounced for the first acquisition of a green target by the same acquirer.
New project funded: Information Aggregation in Automated Market Maker (AMM) Markets
29.06.2026New project funded: Information Aggregation in Automated Market Maker (AMM) Markets
Earlier this year, FiRe members Roland Mestel, Stefan Palan, Erik Theissen and Isabel Walcher were awarded a grant for their project “Information Aggregation in AMM Markets Compared to Continuous Double Auction Markets”. The authors gratefully acknowledge the generous support of the Fintech Dauphine Chair, in partnership with Forvis Mazars and Crédit Agricole CIB, which finances a substantial part of the laboratory experiments conducted as part of this extensive research project and Isabel Walcher’s dissertation.
The resulting paper is part of a broader three-paper project that compares various economic aspects of automated market maker (AMM) markets and continuous double auction markets using laboratory market experiments.
Additional funding for the project’s final paper was kindly provided by the Bankwissenschaftliche Gesellschaft, whose support the authors gratefully acknowledge.
Leonie Schmarda joins research platform
01.06.2026Leonie Schmarda joins research platform
Leonie Schmarda recently joined the research platform as a PhD student and university assistant at the Department of Finance under the supervision of Univ.-Prof. Dr. Andrea Schertler. She completed her master's degree in Economics at the University of Graz and spent part of her studies abroad, with a particular focus on econometrics and quantitative methods.
Her research interests lie at the intersection of banking, financial regulation, and empirical finance. Drawing on her background in economics and applied econometrics, she is particularly interested in studying how regulatory frameworks and strategic decisions affect the behavior and performance of financial institutions. Her current work focuses on exploring potential research questions in banking and financial intermediation, with an emphasis on rigorous empirical analysis.
FiRe Annual Report 2025 released
26.03.2026FiRe Annual Report 2025 released
The most recent annual report of Finance Research Graz has been released!
Talk about the (non-)participation in the stock market
14.01.2026Talk about the (non-)participation in the stock market
Austrian retail stock market participation (i.e., the proportion of the population that owns stocks or equity funds), while growing substantially recently, is still relatively low, with unfavorable consequences for Austrians' disposable income and wealth particularly in retirement. To help address this issue, Stefan Palan was recently asked to give a talk about the motives for, and obstacles preventing, investment in the stock market among Austrian retail investors. Speaking in front of senior retail bankers, he reported on recent research showing that non-investors overestimate the expertise required to participate in the stock market, and that a majority holds such erroneous beliefs as that such investment requires at least weekly checking on one's brokerage account.
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