School of Business

Financial Markets and Investors

Lead: Professor Ania Zalewska

Our research focuses on broadly defined issues relating to the development, evolution, characteristics and regulation of financial markets and its major participants, i.e., financial institutions, corporations, institutional investors and retail investors. We aim to be a catalyst and facilitator for research and policy development by conducting high quality research and bringing together researchers and practitioners with a shared interest in ensuring that markets and institutions operate effectively, efficiently, and in the best public interest. Our research includes, but is not limited to studying

  • The development of financial markets, their interconnectivity, risk and ability to adjust to climate change and technological innovation
  • The design and implementation of effective governance structures
  • The banking industry, its regulation and ability for effective capital provision
  • The development of institutional investors (e.g., mutual funds, pension funds, insurance companies), the quality of the services they provide, their responsiveness to climate change challenges and impact on the delivery of green policies
  • The development and regulation of Fintech and its impact on financial markets and investors
  • A broad range of behavioural issues related to the adoption and responsiveness to green policies
  • The financial sophistication of investors, and its impact on financial decision making and investment decisions


Associated members:

Selected publications


Fatouh, M. and Giansante, S. Expected loss model and the cyclicality of bank credit losses and capital ratios. Annals of Operations Research (forthcoming)

Fatouh, M., Giansante, S. and Ongena, S. Leverage ratio, risk-based capital requirements and risk-taking in the United Kingdom. Financial Markets, Institutions & Instruments (forthcoming)  

Lee, T., Moutzouris, I.C., Papapostolou, N.C. and Fatouh M. Foreign exchange hedging using regime-switching models: the case of pound sterling. International Journal of Finance and Economics (forthcoming)  

Chen., J. and Ausloos, M. A study about who is interested in stock splitting and why: considering companies, shareholders or managers. Journal of Risk and Financial Management 16 (2), 68  

Ausloos, M. Shannon entropy and Herfindahl-Hirschman Index as team's performance and competitive balance indicators in cyclist multi-stage races. Entropy 25(6), 955  

Vinte, C. and Ausloos, M. Portfolio volatility estimation relative to stock market cross-sectional intrinsic entropy. Journal of Risk and Financial Management 16, 114.


Zalewska, A. Saving with group or individual personal pension schemes: How much difference does it make? Management Science 68(7), 5384-5402  

Zalewska, A.  Bankers’ remuneration reforms and new challenges. Corporate Governance: An International Review 31(1), 161-177  

Giansante, S., Fatouh, M. and Ongena, S. The asset reallocation channel of quantitative easing. The case of the UK. Journal of Corporate Finance, 77, 102294  

Omar, A., and Lambe, B. Crude oil pricing and statecraft: Surprising lessons from US economic sanctions. International Review of Financial Analysis, Vol. 83, 1 – 10  

Lambe, B. Li, Z. and Qin, W. Uncertain times and the insider perspective. International Review of Financial Analysis 81, 102138  

Nguyen, L.X.D., Chevapatrakul, T. and Mateut, S. Shock transmissions and business linkages among US sectors. Annals of Operations Research, 1-36.  

Ausloos, M. and Bronlet, Ph. Economic Freedom: The top, the bottom, and the reality. I. 1997-2007. Entropy 24, 38  

Al Yaqoobi, A. and Ausloos, M.   An Intergenerational Issue: the equity issues due to Public-Private Partnerships. The critical aspect of the Social Discount Rate choice for future generations. Journal of Risk and Financial Management 15, 49  

Vinte, C. and Ausloos, M. The cross-sectional intrinsic entropy. A comprehensive stock market volatility estimator. Entropy 24, 623

Shi, J., Ausloos, M., and  Zhu, T.  If global or local investor sentiments are prone to developing an impact on stock returns, is there an industry effect? International Journal of Finance & Economics 27(1), 1309-1320 

Pham, R. and Ausloos, M. Insider trading in the run-up to merger announcements. Before and after the UK’s Financial Services Act 2012. International Journal of Finance and Economics 27(3), 3373-3385  

Haven E., Ausloos M., Jafari R., and Saakian D. Editorial: The paradigm of complexity and the real data of socio-economy. Front. Phys. 10:1068088  

Un, K.S. and Ausloos, M. Equity Premium prediction taking into account the role of long, even asymmetric, swings in stock market behavior.  Physica A 608, 128285. 


Fatouh, M., Markose, S. and Giansante, S. The impact of quantitative easing on UK bank lending: Why banks do not lend to businesses? Journal of Economic Behavior & Organization, 183, 928-953 

Fatouh, M., Giansante, S. and Ongena, S. Economic support during the COVID crisis. Quantitative easing and lending support schemes in the UK. Economics Letters, 209, 110138

Omar, A., Lambe, B., and Wisiniewski, T. Perceptions of the threat to national security and the stock market. Journal of Economic Behavior and Organization 186, 504 – 522 

Nguyen, L.H., Nguyen, L.X. and Tan, L. Tail risk connectedness between US industries. International Journal of Finance & Economics  26(3), 3624-3650

Ausloos, M. and Herteliu, C. Statistical analysis of the membership management indicators of the Church of England UK dioceses during the recent (XXth Century) “Decade of Evangelism”. Stats 4(4), 1069-1079

Herteliu,  C., Jianu, I., Jianu, I., Bobb, V.C., Dhesi, G., Ceptureanu, S.I., Ceptureanu, E.G. and Ausloos, M. Money's importance from the religious perspective. Annals of Operations Research 299(1), 375-399

Spurr, A. and Ausloos, M. Challenging practical features of bitcoin by the main altcoins. Quality and Quantity 55, 1541-1559

Bowes, J. and Ausloos, M. Financial Risk and Better Returns through Smart Beta Exchange Traded Funds? Journal of Risk and Financial Management 14, 283.

Vinte, C., Ausloos, M. and Furtuna, T.F. A. Volatility estimator of stock market indices based on the intrinsic entropy model. Entropy 23, 484.

Ausloos, M., Ficcadenti, V., Dhesi, G. and Shakeel, M. Benford's laws tests on S&P500 daily closing values and the daily log-returns point to huge non-conformity, Physica A 574, 125969

Kyere, M. and Ausloos, M. Corporate governance and firms financial performance in the United Kingdom. International Journal of Finance and Economics 26, 1871-1885.

Dhesi, G., Shakeel, B. and Ausloos, M. Modelling and forecasting the kurtosis and returns distributions of financial markets: Irrational fractional Brownian motion model approach, Annals of Operations Research 2999(1), 1397-1410

Zhang, Y. and Ausloos, M. Financial pre-factors for post-performance of cross-border mergers & acquisitions. Journal of Chinese Economic and Business Studies 19, 147-161.


Zalewska, A. and Zhang, Y. Mutual funds’ exits, financial crisis and Darwin, Journal of Corporate Finance 65,  

Nguyen, L.X.D., Mateut, S. and Chevapatrakul, T. Business-linkage volatility spillovers between US industries. Journal of Banking & Finance, 111, 105699. 

Ausloos, M., Ma, Q., Kaur, P., Syed, B. and Dhesi, G. Duration gap analysis revisited method in order to improve risk management. The case of (Chinese) commercial bank interest rate risks after interest rate liberalisation. Soft Computing 24, 13609-13627  

Ausloos, M., Zhang, Y. and G. Dhesi, G. Stock index futures trading impact on spot price volatility. The CSI 300 studied with a TGARCH model.   Expert Systems with Applications 160, 113688.  

Cerqueti, R.,  Rotundo,  G. and Ausloos, M. Tsallis entropy for cross-shareholding network configurations. Entropy 22(6), 676.  

Manavi, S.A.,  Jafari, G., Rouhani, S. and Ausloos, M. Demythifying the belief in cryptocurrencies decentralized aspects. A study of cryptocurrencies time cross-correlations with common currencies, commodities and financial indices. Physica A 556, 124759

Ausloos, M. Rank-size law, financial inequality indices and gain concentrations by cyclist teams. Physica A 540, 123161

Working papers

Eccles, P., Grout, P.A, Siciliani, P. and Zalewska, A. 2023. Open banking and capital requirements. Bank of England WP. 

Wei, W. and Zalewska, A. 2023. Capitalists or fiduciary conscious agents? ESG mutual fund fees and investor sophistication  

Fatouh, M. and Giansante, S. 2023. The cyclicality of bank credit losses and capital ratios under expected loss model  

Lee, T., Moutzouris, I.C., Papapostolou, N.C. and Fatouh, M. 2023. Foreign exchange hedging using regime-switching models: the case of pound sterling

Malik, A. 2023. Monetary policy uncertainty and mutual fund alpha consistency. WP

Malik, A., Gonul, C. and Loflund, A. 2023. Mutual fund flows and economic distress risk. WP

Omar, A., Wisniewski, P. and Lambe, B. 2023. Corruption in infrastructure projects: evidence from offshore banking. WP

Pasqualina, A., Litos, A. and Papadopoulou , A. 2023. Endogenous information acquisition in an investment-trading game. WP

Zalewska, A. and Y. Zhang. 2022. To Bao or not to Bao. Payment innovation and the money market funds.  

Malik, A. and Colak, G. 2022. Macro or firm-level: which political risk matters. WP

Bernales, A. Ladley, D., Litos, E. and Valenzuela, M. 2022. Alternative execution priority rules in dark pools.  

Zalewska, A. and Zhang, Y. 2021. Independent directors’ self-interest and mutual funds’ liquidations.  

Eccles, P., P.A. Grout, P. Siciliani and Zalewska, A. 2021.The impact of machine learning and big data on credit markets.             

Zalewska, A. 2021. Are SRRI risk classes informative about pension funds’ risk-return characteristics?               

Fatouh, M., Neamțu, I., and van Wijnbergen, S. 2021. Risk-taking and uncertainty: do contingent convertible (CoCo) bonds increase the risk appetite of banks?

Malik, A. and Colak, G. 2021. Corporate bond market and the FOMC cycle. WP

Mehta, G. 2021. Expectations and the option implied-variance. 

Fatouh, M., Bock, R. and Ouenniche, J. 2020. Impact of IFRS 9 on the cost of funding of banks in Europe  

Giansante, S., Fatouh, M. and Ongena, S. 2020. Does quantitative easing boost bank lending to the real economy or cause other bank asset reallocation? The case of the UK


External speakers

Dr Eddie Gerba, Head of Prudential Policy Research, Bank of England – PRA, “What research does Bank of England seek?”

Alastair Sewell, Liquidity Investment Strategist, Aviva Investors, “Money market mutual funds: cause or effect? Perspectives on financial stability”

Dr Gerardo Ferrara, Senior Economist, Bank of England, Capital Markets Division, “Recent developments in market-based  finance: A tale of procyclicality, resilience and funding”

Mike Clark, Founder Director, Ario Advisory, “Finance and climate change: status overview: Ideas re possible research areas”

Dr Mahmoud Fatouh, Bank of England, “In search of the relevant policy making questions”

Recent keynote addresses

  • Ania Zalewska, Business Resilience and Best Practice for Corporate Governance, ICAEW  Leeds, 3 October 2023
  • Ania Zalewska, Net Zero Areas of Research Interest Policy Workshop, The British Academy and the Department for Work and pensions, London, 4 May 2023
  • Ania Zalewska, Climate Change Risk Reporting by Pension Funds: International Evidence DFF, Copenhagen, Denmark, 8 December 2022
  • Ania Zalewska, Realising Net Zero: Engaging Consumers with the Transition, Industry and Parliamentary Trust, House of Commons, London, 8 June 2022
  • Ania Zalewska, What Next for Digital Payments? Industry and Parliamentary Trust, House of Commons, London, 11 January 2022
  • Ania Zalewska, Investing in the 2022 real interest rate environment, Institute for Quantitative Investment Research (INQUIRE), Bath, 21 November 2021



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