Foundations and Trends® in Finance

Volume 8, issue 4

The Empirical Analysis of Liquidity

We provide a synthesis of the empirical evidence on market liquidity. The liquidity measurement literature has established standard measures of liquidity that apply to broad categories of market microstructure data. Specialized measures of liquidity have been developed to deal with data limitations
Volume 8, issue 3

Text and Context: Language Analytics in Finance

This monograph surveys the technology and empirics of text analytics in finance. I present various tools of information extraction and basic text analytics. I survey a range of techniques of classification and predictive analytics, and metrics used to assess the performance of text analytics algor
Volume 8, issue 2

Long Run Relationships in Banking

This monograph surveys the effects of long-run relationships in banking between corporate borrowers and lenders. The first part of the survey analyzes econometric issues in the measurement of the costs and benefits of such relationships. In particular, we analyze potential issues with commonly used
Volume 8, issue 1

Should Banks' Stress Test Results be Disclosed? An Analysis of the Costs and Benefits

Stress tests have become an important component of the supervisory toolkit. However, the extent of disclosure of stress-test results remains controversial. We argue that while stress tests uncover unique information to outsiders — because banks operate in second--best environments with multiple impe...