Narrow search
Showing 1 - 10 of 95
Cover Image
Balance sheet capacity and endogenous risk
Danielsson, Jon; Song Shin, Hyun; Zigrand, Jean-Pierre - London School of Economics (LSE) - 2011
Banks operating under Value-at-Risk constraints give rise to a welldefined aggregate balance sheet capacity for the banking sector as a whole that depends on total bank capital. Equilibrium risk and market risk premiums can be solved in closed form as functions of aggregate bank capital. We...
Persistent link: https://www.econbiz.de/10010884614
Cover Image
Multiple-bank lending: diversification and free-riding in monitoring
Carletti, Elena; Cerasi, Vittoria; Daltung, Sonja - London School of Economics (LSE) - 2004
This paper analyzes banks’ choice between lending to firms individually and sharing lending with other banks, when firms and banks are subject to moral hazard and monitoring is essential. Multiple-bank lending is optimal whenever the benefit of greater diversification in terms of higher...
Persistent link: https://www.econbiz.de/10010745086
Cover Image
Loan maturity and renegotiation evidence from the lending practices of large and small banks
Albertazzi, Ugo - London School of Economics (LSE) - 2007
Corporate finance theories suggest that problems of asymmetric information and moral hazard in credit markets can be …
Persistent link: https://www.econbiz.de/10010745643
Cover Image
Procyclical leverage and value-at-risk
Adrian, Tobias; Shin, Hyun Song - London School of Economics (LSE) - 2013
The availability of credit varies over the business cycle through shifts in the leverage of financial intermediaries …
Persistent link: https://www.econbiz.de/10011171761
Cover Image
Recovery rates, default probabilities and the credit cycle
Bruche, Max; Gonzalez-Aguado, Carlos - London School of Economics (LSE) - 2006
a model in which this dependence is the result of an unobserved credit cycle: When times are bad, the default … ignoring the dynamic nature of credit risk could lead to a severe underestimation of credit risk (e.g. by a factor of up to 1 ….7 in terms of the 95% VaR). Also, the model indicates that the credit cycle is related to but distinct from the business …
Persistent link: https://www.econbiz.de/10010746498
Cover Image
Does the underground economy hold back financial deepening? Evidence from the Italian credit market
Gobbi, Giorgio; Zizza, Roberta - London School of Economics (LSE) - 2007
regional credit markets we find a strong negative impact of the share of irregular employment on outstanding credit to the … outstanding credit to households, both expressed as ratios to GDP. Conversely, the feedback effects from financial deepening to … labour on banks’ entry decisions in the local credit markets, now defined in terms of provinces. …
Persistent link: https://www.econbiz.de/10010744823
Cover Image
The National Audit Office, the Public Accounts Committee and the risk landscape in UK public policy
Dunleavy, Patrick; Gilson, Christopher; Bastow, Simon; … - London School of Economics (LSE) - 2009
Persistent link: https://www.econbiz.de/10010884670
Cover Image
Corporate ownership structure and performance in Europe
Grant, Jeremy; Kirchmaier, Thomas - London School of Economics (LSE) - 2004
In this paper, we show that ownership structures vary considerably across Europe, and that the dominant form of ownership is not necessarily the most efficient one. These findings are in contradiction to similar research based on US samples. The results also demonstrate that firms without a...
Persistent link: https://www.econbiz.de/10010884735
Cover Image
Rights offerings, trading, and regulation: a global perspective
Massa, Massimo; Vermaelen, Theo; Xu, Moqi - London School of Economics (LSE) - 2013
We study rights offerings using a sample of 8,238 rights offers announced during 1995-2008 in 69 countries. Although shareholders prefer having the option to trade rights, issuers deliberately restrict tradability in 38% of the offerings. We argue that firms restrict rights trading to avoid the...
Persistent link: https://www.econbiz.de/10010884755
Cover Image
Risk averse supervisors and the efficiency of collusion
Faure-Grimaud, Antoine; Laffont, Jean-Jacques; … - London School of Economics (LSE) - 2002
This paper studies the efficiency of collusion between supervisors and supervisees. Building on Tirole (1986)’s results that deterring collusion with infinitely risk averse supervisors is impossible, while it is costless to do so under risk neutrality, we develop here a theory of collusion...
Persistent link: https://www.econbiz.de/10010928620