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Rampini, Adriano A. - 2016

This paper studies the effect of durability on the financing of durable assets. We show that more durable assets … the price of an asset and hence the overall financing need more than its collateral value. This insight has implications … dominated technologies. More durable assets are more likely to be rented given their larger financing need. Legal enforcement …

Persistent link: https://www.econbiz.de/10012271598

Equilibrium Corporate Finance and Intermediation

Bisin, Alberto - 2014

frictions. Firms take their production, financing, and contractual decisions so as to maximize their value under rational …

Persistent link: https://www.econbiz.de/10012458322

Financing as a Supply Chain : The Capital Structure of Banks and Borrowers

Gornall, William - 2013

We develop a model of the joint capital structure decisions of banks and their borrowers. Strikingly high bank leverage emerges naturally from the interplay between two sets of forces. First, seniority and diversification reduce bank asset volatility by an order of magnitude relative to that of...

Persistent link: https://www.econbiz.de/10012459028

When Credit Bites Back : Leverage, Business Cycles, and Crises

Jordà, Òscar - 2011

This paper studies the role of credit in the business cycle, with a focus on private credit overhang. Based on a study of the universe of over 200 recession episodes in 14 advanced countries between 1870 and 2008, we document two key facts of the modern business cycle: financial-crisis...

Persistent link: https://www.econbiz.de/10012461036

The Value of Intermediation in the Stock Market

Maggio, Marco Di - 2019

Brokers continue to play a critical role in intermediating institutional stock market transactions. More than half of all institutional investor order flow is still executed by high-touch (non-electronic) brokers. Despite the continued importance of brokers, we have limited information on what...

Persistent link: https://www.econbiz.de/10012480093

Anticipating the Stock Market Crash of 1929 : The View from the Floor of the Stock Exchange

White, Eugene N. - 2006

In the months prior to the stock market crash of 1929, the price of a seat on the New York Stock Exchange was abnormally low. Rising stock prices and volume should have driven up seat prices during the boom of 1929; instead there were negative cumulative abnormal returns to seats of approximately 20...

Persistent link: https://www.econbiz.de/10012466000

R-Squared Around the World : New Theory and New Tests

Jin, Li - 2004

Morck, Yeung and Yu (MYY, 2000) show that R2 and other measures of stock market synchronicity are higher in countries with less developed financial systems and poorer corporate governance. MYY and Campbell, Lettau, Malkiel and Xu (2001) also find a secular decline in R2 in the United States over...

Persistent link: https://www.econbiz.de/10012468240

Counterparty Risk and the Establishment of the New York Stock Exchange Clearinghouse

Bernstein, Asaf - 2014

Heightened counterparty risk during the recent financial crisis has raised questions about the role clearinghouses play in global financial stability. Empirical identification of the effect of centralized clearing on counterparty risk is challenging because of the co-incidence of macro-economic...

Persistent link: https://www.econbiz.de/10012458209

Leverage and Beliefs : Personal Experience and Risk Taking in Margin Lending

Koudijs, Peter - 2014

What determines risk-bearing capacity and the amount of leverage in financial markets? Using unique archival data on collateralized lending, we show that personal experience can affect individual risk-taking and aggregate leverage. When an investor syndicate speculating in Amsterdam in 1772 went...

Persistent link: https://www.econbiz.de/10012458707

Why Are Returns to Private Business Wealth So Dispersed?

Boar, Corina; Gorea, Denis; Midrigan, Virgiliu - National Bureau of Economic Research - 2022

We use micro data from Orbis on firm level balance sheets and income statements to document that accounting returns for privately held businesses are dispersed, persistent, and negatively correlated with firm equity. We also show that firms experience large, fat-tailed, and partly transitory...

Persistent link: https://www.econbiz.de/10012814480