Abstract: We examine whether election periods are associated with increased systemic risk. Our analysis includes a global sample of banks from 22 advanced economies from 2000 to 2023, covering a total of 147 national elections. The findings indicate that systemic risk increases during election and post-election periods, while it is lower in the pre-election period in the case of end-of-term elections. More specifically, the year in which elections occur is associated with a 3.74% higher systemic risk compared to the overall average. The results can be attributed to the suppression of negative information and expansionary fiscal policies in the period before elections. Notably, the impact is more pronounced for snap elections and when the incumbent government was not re-elected. In addition, we find that macroprudential policies, strong economic growth and trust in the current government and banks’ financial health can partially mitigate the impact of elections on systemic risk. Finally, to alleviate endogeneity concerns, we employ two instrumental variables, namely, term times and an election uncertainty index based on Google Trends, in a 2SLS model and the results hold and confirm our previous findings, further validating the robustness of our analysis

Abstract:  This research aims to examine the relationship between sustainability-related disclosures (hereafter referred to as SDR) and performance indicators within the Real Estate Investment Trust (REIT) sector. With growing attention on sustainable investment, REITs have increasingly adopted ESG practices,  however, the implications of these practices on financial performance remain underexplored. This study will use a large panel of European REITs’ annual reports and AI to create a dynamic measurement of sustainability disclosures. Initially, we will assess whether companies that provide more extensive disclosures are also those with higher sustainability, as indicated by their ESG scores. Any discrepancies between disclosure levels and ESG performance may indicate either inadequate reporting or potential greenwashing and exaggeration of their practices. In addition, we aim to investigate whether enhanced SRD influence REITs' financial key performance indicators (KPIs), such as debt and profitability ratios, as well as their impact on REITs’ risk profile. Finally, we will explore differences across sectors and countries, as well as the impact of the regulatory framework. The findings will provide insights into the financial benefits of sustainability disclosures and guidance for investors and policymakers.