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The Influence of Obligation and Asset Gaps on Differences in Financial Institutions Valuations

Conducted by:

Prof. Izhak Venezia / School of Management and Economics

Professor Venezia’s research examines the impact of stock sensitivity on duration mismatches, and shows that increased mismatches have a negative influence of stock exchange, without the stocks trade having any informative value - in other words it wastes resources. Such wasteful mismatches are results of banks using of complex financial mechanisms that are difficult for investors to understand.

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