Research Activity - November 2017
Glaveanu Gives Keynote Presentation at International Workshop in Milan
On the 10th of November, Vlad Glaveanu, the Head of Psychology and Professional Counseling at Webster University Geneva, gave a keynote at the International Workshop “Creativity meets design thinking”, organised by the Università Cattolica del Sacro Cuore, Milan, Italy.
Dr. Glaveanu’s talk, titled “Re-designing creativity: From thinking to doing”, focused on the need to move away from thinking-based models of creativity and towards a more integrated and contextual approach. It proposed the study of creative action as a unit of analysis within the psychology of creativity and outlined, in the analysis of creative activities, the importance of positions, perspectives, and reflexivity.
Other speakers at the workshop came from Università Cattolica del Sacro Cuore and the Politecnico di Milano as well as the University of Bologna. The workshop was attended by over 50 participants. Future meetings are planned in collaboration with Webster University Geneva.
Paserman Publishes on The Effect of Corruption on Bond Prices
Dr. Michal Paserman has published a new article in the Journal of International Money and Finance. The paper entitled “Comovement or safe haven? The effect of corruption on the market risk of sovereign bonds of emerging economies during financial crises” explores the role of corruption in the cross-market time-varying linkage between sovereign bonds of emerging markets and the US stock market.
The article shows that corruption plays a prominent role in the behaviour of comovement under various market conditions. Sovereign bonds’ sensitivity to systematic shocks increases during financial crises when those bonds are issued by countries perceived to be more corrupt. The returns on bonds issued by less corrupt countries are determined more idiosyncratically under extreme market conditions and realize more hedging benefits against S&P 500 risk. To explain these findings, Paserman proposes a comovement model. When sentiment deteriorates, ambiguity-averse investors load more worldwide news on sovereign bonds issued by more corrupt countries where information uncertainty is perceived to be higher.
Reference: Paserman, M., 2017. Comovement or safe haven? The effect of corruption on the market risk of sovereign bonds of emerging economies during financial crises, Journal of International Money and Finance 76. 106–132.