Finance Panel

The Clark Center for Global Markets explores finance professors’ views on vital policy issues via our Finance Panel. We regularly poll over 40 individuals on a range of timely and relevant topics. Panelists not only have the opportunity to respond to a poll’s statements, but an opportunity to comment and provide additional resources, if they wish. The Clark Center then shares the results with the public in a straightforward and concise format.

Please note that from September 2022, the language in our polls will use just two modifiers to refer to the size of an effect:

‘Substantial’: when an effect is large enough that it would make a difference that matters for the behavior involved.
‘Measurable’: when the direction of the effect is clear, but perhaps experts would differ as to whether it is substantial.

Public and Private Equities

Finance

Public and Private Equities

Question A:

Although the reported volatility of asset values in private markets (private equity, buyouts, and venture capital) is lower than that of comparable assets in public markets, their true volatility is broadly similar or greater.

Responses

Source: Clark Center Economic Experts Panel
Methodology

Question B:

Since the global financial crisis, the realized returns on private equities have measurably exceeded the returns on public equities.

Responses

Source: Clark Center Economic Experts Panel
Methodology

December 20, 2022

Cryptocurrency Exchanges

Finance

Cryptocurrency Exchanges

Question A:

The collapse of a major crypto intermediary will have little impact on the wider economy and the stability of the traditional financial system.

Responses

Source: Clark Center Economic Experts Panel
Methodology

Question B:

The collapse of a major crypto intermediary suggests the need for the crypto asset class to be more tightly regulated.

Responses

Source: Clark Center Economic Experts Panel
Methodology

Finance and the Economy

November 21, 2022

Passive Investing

Finance

Passive Investing

This Finance survey examines (a) The amount of passively invested funds has reached levels at which it has a measurable detrimental effect on market efficiency.

Investment Management

November 8, 2022

Banks and Financial Crises

Finance

Banks and Financial Crises

This Finance survey examines (a) Research on the nature and impact of bank runs has made it possible to limit substantially the wider economic damage from financial crises; (b) Reforms of financial regulation since 2008 (and macroprudential policies in some countries) will not substantially reduce the probability of financial crises

Banking

October 18, 2022

Currency Depreciation

Finance

Currency Depreciation

This Finance survey examines (a) The costs and risks associated with a sharp fall in the value of sterling outweigh any macroeconomic benefits for the UK of export stimulus due to a weaker currency; (b) Concerns about government finances and debt sustainability can undermine the reserve currency status of a major currency

International Finance

October 5, 2022

Executive Pay

Finance

Executive Pay

This Finance survey examines (a) The typical chief executive officer of a publicly traded corporation in the U.S. is paid more than his or her marginal contribution to the firm's value. (b) Mandating that U.S. publicly listed corporations must allow shareholders to cast a non-binding vote on executive compensation was a good idea.

Corporate Governance

September 21, 2022

Climate Reporting Mandate

Finance

Climate Reporting Mandate

This Finance survey examines (a) A mandate for public companies to provide climate-related disclosures (such as their greenhouse gas emissions and carbon footprint) would provide financially material information that enables investors to make better decisions; (b) A mandate for public companies to provide climate-related disclosures would provide material information that enables investors to make better decisions with regards to non-financial objectives (such as aiding portfolio choice based on ESG principles); (c) A mandate for public companies to provide climate-related disclosures would induce them to reduce their climate impact substantially.

Corporate Governance

September 21, 2022

Stakeholder Capitalism

Finance

Stakeholder Capitalism

This Finance survey examines (a) Having companies run to maximize shareholder value creates significant negative externalities for workers and communities. (b) Appropriately managed corporations could create significantly greater value than they currently do for a range of stakeholders – including workers, suppliers, customers, and community members – with negligible impacts on shareholder value. (c) Effective mechanisms for boards of directors to ensure that CEOs act in ways that balance the interests of all stakeholders would be straightforward to introduce.

Corporate Governance

September 21, 2022