Recessions are associated with sharp increases in turbulence that reshuffles firms' productivity rankings. To study the business cycle implications of shocks, we use Compustat data to construct a measure based on (inverse of) Spearman correlations rankings between adjacent years. We document evidence rises recessions, reallocating labor and capital from high-to low-productivity firms reducing a...

Managers engage in income smoothing either to communicate private information about future earnings to investors (informativeness hypothesis) or to distort financial performance for opportunistic purposes (opportunism hypothesis). Business cycles and the monitoring role of institutional ownership may affect the earnings informativeness of income smoothing. The purpose of this research is to exa...

We study the cross-country dimension of financial cycles for six euro area countries using wavelet analysis. Estimated cohesions show that in equity prices and interest rates display stronger synchronization across than real output cycles, whereas credit variables house lower synchronization. propose a wavelet-based extension to spectral envelope is similar frequency-based time-varying principa...

Every economy experiences peaks and troughs in its business cycle. It has always been the researchers’ interests to identify the underlying causes of shocks. In the business cycle literature, there exists a new strand of methodology that allows the analysis at a disaggregated level using the dynamic factor model. This model allows the decomposition of aggregate shocks into country-specific, reg...

Estimated dynamic models of business cycles in emerging markets deliver counterfactual predictions for the country risk premium. In particular, the country interest rate predicted by these models is acyclical or procyclical, whereas it is countercyclical in the data. This paper proposes and estimates a small open economy model of the emerging-market business cycle in which a time-varying countr...

this paper identifies characteristics of business cycles in iran, applying hodrick-prescott (hp) and band-pass (bp) filters. using seasonal and anual data for 1970-2003, it is found that oil income is the key driving factor of business cycles in the iranian economy. furthermore, it is indicated that iran's economy has experienced seven business cycles during this period, in which the econo...