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In this paper we explore the process of convergence to firms’ target leverage ratios. Using a unique dataset of micro, small, medium and large firms, we find that this process is very fast, most notably for smaller firms. We further explore these results by analyzing different convergence...
Persistent link: https://www.econbiz.de/10010552211
Persistent link: https://www.econbiz.de/10010833985
Universal banks can have control over borrowers by holding equity stakes in the borrower firm. Banks’ corporate control is likely to increase the likelihood of providing a future loan as they mitigate information asymmetry and agency costs of debt. Using panel data on Portuguese companies, we...
Persistent link: https://www.econbiz.de/10009207325
In this study, an assessment of the impact of Basel II capital requirement rules driven by credit risk of non-financial firms is performed. Intervals of variation for the risk drivers are established such that capital requirements for firms' credit risk under Basel II exceed capital requirements...
Persistent link: https://www.econbiz.de/10008524188
Using micro level data, this work characterizes the interest rate pass-through in loan and deposit retail rates of the Portuguese banking system. It concludes that the long-run impact of a change in money market rates on loans is typically around one while it is smaller than one for deposits....
Persistent link: https://www.econbiz.de/10008524245