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King, Michael R.; Ongena, Steven; Tarashev, Nikola A. - 2018 - Revised January 2018. - This version: January 6, 2018

We study a unique experiment to examine the importance of rating agencies' private information for bank shareholders … relationship between stock price reactions and rating surprises, revealing that the rating refinement delivered useful information …

Persistent link: https://www.econbiz.de/10012101174

Market discipline through credit ratings and too-big-to-fail in banking?

Kolaric, Sascha; Kiesel, Florian; Ongena, Steven - 2017

Do credit ratings help enforce market discipline on banks? Analyzing a uniquely comprehensive dataset consisting of 1,081 rating change announcements for 154 international financial institutions between January 2004 and December 2015, we find that rating downgrades for internal reasons, such as...

Persistent link: https://www.econbiz.de/10011627047

Bank private information in CDS markets

Bilan, Andrada; Ongena, Steven; Pancaro, Cosimo - 2023

banks penalized for potentially holding private information? To answer this question we merge CDS trades reported under the … trading with other investors. Our findings suggest that banks hold valuable private information which is shared in their … trades with dealers. Dealers then disseminate this information to financial markets. …

Persistent link: https://www.econbiz.de/10014315233

The certification role of the EU-wide stress testing exercises in the stock market : what can we learn from the stress tests (2014-2021)?

Durrani, Agha; Ongena, Steven; Marques, Aurea Ponte - 2022

stress tests provides new information to markets. Banks performing poorly in stress tests experience, on average, a reduction …

Persistent link: https://www.econbiz.de/10013342212

The agency of CoCos : why contingent convertible bonds aren't for everyone

Goncharenko, Roman; Ongena, Steven; Rauf, Asad - 2019

Most regulators grant contingent convertible bonds (CoCos) the status of equity. Theory, however, suggests that CoCos can induce debt overhang, thereby, increasing the cost of issuing equity. First, we theoretically investigate how the extent of this debt overhang varies with bank...

Persistent link: https://www.econbiz.de/10012100896

Pollution permits and financing costs

Antoniou, Fabio; Delēs, Manthos D.; Ongena, Steven; … - 2020

Effective environmental policy should consider how the financiers of polluting firms behave. In our theoretical model describing the periods before and after policy implementation, loan spreads for firms participating in cap-and-trade programs are a function of the costs of compliance, the...

Persistent link: https://www.econbiz.de/10012421274