Showing 1 - 10 of 85
In this paper, I study how the CEO's election can be biased if some directors in the board belong to the same network. I use a static Bayesian game. Directors want to elect the best candidate but they also want to vote for the winner. In that context, results show that, when no candidate is part...
Persistent link: https://www.econbiz.de/10010815987
This paper studies how financial development affects the relation between average growth and growth volatility through liquidity crises. We .first establish in a micro model that imperfect enforceability creates a short term bias in contracts financing long term investments. This can generate...
Persistent link: https://www.econbiz.de/10004998817
This study assesses the reaction of stock markets, when Sovereign Wealth Funds (SWFs) announce that they have taken a stake in a listed company. It adds useful empirical results to the debate on the effect of SWFs on financial markets, which remains so far largely reliant on guess work. We...
Persistent link: https://www.econbiz.de/10009395382
The paper investigates, from the welfare and growth point of view, the determination of the optimal capacity of the banking system. For that purpose, we consider an overlapping generation model with endogenous growth.
Persistent link: https://www.econbiz.de/10005487051
In this paper, financial infrastructures increase the efficiency of the banking sector: they decrease the market power (due to horizontal differentiation) of the financial intermediaries, lower the cost of capital, increase the number of depositors and the amount of intermediated savings,...
Persistent link: https://www.econbiz.de/10005487052
We develop a dynamic general equilibrium model for the positive and normative analysis of macroprudential policies. Optimizing financial intermediaries allocate their scarce net worth together with funds raised from saving households across two lending activities, mortgage and corporate lending....
Persistent link: https://www.econbiz.de/10011105999
We study the liquidity allocation among European banks around the Lehman Brothers’ insolvency using a novel dataset of all interbank loans settled via the Eurosystem’s payment system TARGET2. Following the Lehman insolvency, lenders in the overnight segment become sensitive to counterparty...
Persistent link: https://www.econbiz.de/10011106001
We analyse the dynamics of the pass-through of banks’ marginal cost to bank lending rates over the 2008 crisis and the …-run relationship moved with the sovereign debt crises to a new one, with a slower pass-through and higher bank lending rates. Its …
Persistent link: https://www.econbiz.de/10011265898
Using a large database of bank financial statements, this paper investigates the determinants of the bank lending … period. The sensitivity of credit supply to monetary shocks is not related to the bank characteristics generally used in the … empirical literature, whereas a proxy of the individual bank external finance premium (EFP) tends to capture financial …
Persistent link: https://www.econbiz.de/10011269008
With the Euro Area context in mind, we show that currency arrangements impact on credit available through default incentives. To this end we build a symmetric two-country model with money and imperfect credit market integration. Differences in credit market integration are captured by variations...
Persistent link: https://www.econbiz.de/10011199814