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The distortionary effects of central bank direct lending on firm quality dynamics

Li, Wenhao; Li, Ye - 2020

-quality firms. Public liquidity support preserves the overall production capacity. However, by dampening the cleansing effects, it … the expectations of liquidity support that motivate low-quality firms to overinvest pre-crisis. Finally, the size of … on savings discourage firms from self-insurance against crises through internal liquidity accumulation …

Persistent link: https://www.econbiz.de/10012388390

Procyclical finance : the money view

Li, Ye - 2017

, holding intermediaries' debt as cash. This paper shows that intermediaries' liquidity creation stimulates growth -- firms hold …. Introducing government debt as a competing source of liquidity is a double-edged sword: firms hold more liquidity in every state … of the world, but by squeezing intermediaries' profits and amplifying their leverage cycle, public liquidity increases …

Persistent link: https://www.econbiz.de/10011968932

The Dollar ahead of FOMC target rate changes

Karnaukh, Nina - 2018

I find that the U.S. dollar appreciates before contractionary monetary policy decisions at scheduled Federal Open Market Committee meetings and depreciates before expansionary decisions. The federal funds futures rate forecasts these dollar movements with a 22% R2. A high federal funds futures...

Persistent link: https://www.econbiz.de/10011976094

Systemic default and return predictability in the stock and bond markets

Bao, Jack; Hou, Kewei; Zhang, Shaojun - 2016

Using a structural model of default, we construct a measure of systemic default defined as the probability that many firms default at the same time. We account for correlations in defaults between firms through exposures to common shocks. The systemic default measure spikes during recession...

Persistent link: https://www.econbiz.de/10011810905

How important is moral hazard for distressed banks?

Ben-David, Itzhak; Palvia, Ajay; Stulz, René M. - 2020

The moral hazard incentives of the bank safety net predict that distressed banks take on more risk and higher leverage. Since many factors reduce these incentives, including charter value, regulation, and managerial incentives, the net economic effect of these incentives is an empirical...

Persistent link: https://www.econbiz.de/10012216705

Fire sale discount : evidence from the sale of minority equity stakes

Dinç, Serdar; Erel, Isil; Liao, Rose - 2016

industry-adjusted distressed sale discount based on the four-week window to be about 8% while controlling for the liquidity of …

Persistent link: https://www.econbiz.de/10011772255

Incentives for Collaboration and Competition : Experimental Evidence on Innovation, Behavior and Performance

Heite, Jonas - 2020 - 1st ed. 2020.

Subsidized R&D collaboration: The effect of innovation vouchers on innovation activity and performance -- Choking under pressure: The effect of asymmetric contests on effort, stress and performance -- Performance in contests: The role of risk and confidence.

Persistent link: https://www.econbiz.de/10012399250

Does FinTech substitute for banks? : evidence from the Paycheck Protection Program

Erel, Isil; Liebersohn, Jack - 2020

New technology promises to expand the supply of financial services to small businesses poorly served by the banking system. Does it succeed? We study the response of FinTech to financial services demand created by the introduction of the Paycheck Protection Program (PPP). We find that FinTech is...

Persistent link: https://www.econbiz.de/10012244555

Gesundheitsökonomische Bewertung von Präventionsmaßnahmen : Eine Markov-Modellierung zur Analyse der Kosten-Effektivität juveniler Bewegungsförderung

Liersch, Sebastian - 2016

Wirtschaftlichkeitsuntersuchungen und gesundheitsökonomische Evaluation -- Methodik der Entscheidungsanalyse -- Entwicklung eines Markov-Modells -- Ergebnisse der Basisfallbetrachtung, Sensitivitäts- und Szenarioanalysen des Fallbeispiels.

Persistent link: https://www.econbiz.de/10013414512

Payment risk and bank lending

Li, Ye; Li, Yi - 2021

Deposits finance bank lending and serve as means of payment for bank customers. Under uncertain payment flows, deposits are debts with random maturities. Payment outflows drain reserves, and the risk is most prominent when funding markets are under stress and banks are unable to smooth out...

Persistent link: https://www.econbiz.de/10012816444