Between 2010 and 2012 and with bank stability as the ultimate target, five European countries implemented a tax levy on banks' liabilities thereby decreasing the cost of equity relative to the cost of debt. Using a difference-in-differences approach we assess the impact of this tax levy on...

Does financial globalization lead to contagion? We scrutinize linkages between international stock markets in a long historical perspective (1880-2014). Our results highlight that without globalization, contagion cannot exist. However, if cross-market correlations are very high, globalization...

In this paper, we model the first phase of the syndicated loan process by mapping it onto contract bidding theory. Our stylized cost model includes several costs components including the effort made by a candidate lender to be attractive to the borrower. This effort is then modeled as a function...

We investigate the effectiveness of the bank lending channel, that is, whether, and if so how, the accommodative monetary policies of the European Central Bank (ECB) mitigated the disruption in bank lending between 2008 and 2014. We show that both standard and non-standard measures of the...

Although the role of loan officers in the credit process has been extensively discussed in the literature, their individual prejudices have been neglected. The literature on decision making relies on the assumption that all loan officers perceive and use information similarly, regardless of...

We introduce the distinction between broad-scope trust and narrow-scope trust in banking. Broad-scope trust corresponds to trust toward a group in general (e.g., banks as a whole); narrow-scope trust toward a specific individual (e.g., bank–firm relationship). Using U.S. syndicated loans...

Literature points out that women are more discouraged compared to their male counterparts to apply for a loan. However, little is known about the influence exerted by a feminine business environment for women-led firms. Using a dataset of 8,966 firms from 96 countries, we find that...

Following Waterloo, managing French public finances represented a daunting task. Defeated France had lost a substantial part of its population and territory. The country was partially occupied and France was to pay huge amounts as reparations to the victors. Furthermore, France's reputation had...