Populism

    Papers & Opinions

    Corporate finance | Empirics | Political institutions

    Corporate Cash under Populist Leadership: A Tale of Two Variants

    Paper

    Posted on 12 February 2025

    By Wei-Fong Pan

    How do firms manage liquidity in populist-led countries? Using close elections involving populists, we test two hypotheses: populism prompts firms to either (i) increase cash holdings due to political risk...
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    Corporate finance | Electoral politics | Empirics

    Safeguarding Against Populist Expropriation Risk

    Paper

    Posted on 22 December 2023

    By Wei-Fong Pan

    This study explores whether firms adjust their liquidity in response to heightened uncertainty and expropriation risk associated with populism. Using an event study approach, we consistently find that firms reduce...
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    Central banking | Electoral politics | Political institutions

    Ideology and Monetary Policy

    Paper

    Posted on 25 May 2022

    By Nicolo Fraccaroli

    We investigate the link between ideology and the sentiments of parliamentarians when they speak to the central bank they hold accountable. To this end, we collect textual data on the...
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    Electoral politics | Financial markets | Theory

    Inequality Aversion, Populism, and the Backlash Against Globalization

    Paper

    Posted on 12 July 2021

    By Lubos Pastor

    Motivated by the recent rise of populism in western democracies, we develop a tractable equilibrium model in which a populist backlash emerges endogenously in a strong economy. In the model,...
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