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Paper Pascal Böni accepted for publication in Risk Management

Published: 23rd April 2021 Last updated: 18th May 2022

The paper of Pascal Böni on “Are stock prices driven by expected growth rather than discount rates? Evidence based on the COVID-19 crisis” (a collaboration with Heinz Zimmerman, University of Basel) has been published in Risk Management.

The paper investigates the effects from innovations in implied growth versus discount rates during the COVID-19 crisis. The researchers provide evidence that stock prices are largely affected by implied growth expectations of investors, rather than discount rates. Growth expectations outweigh the effects from an increase in discount rate by a factor of approximately 1.6.

Download the paper.