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Hyytinen, Ari; Putkuri, Hanna - Suomen Pankki - 2012

A unique Finnish household-level data from 1994 to 2009 allow us to measure how households’ financial expectations are related to the subsequent outcomes. We use the difference between the two to measure forecast errors and household optimism and link the errors to households’ borrowing...

Persistent link: https://www.econbiz.de/10010819005

In search of concepts: The effects of speculative demand on returns and volume

ap Gwilym, Owain; Wang, Qingwei; Hasan, Iftekhar; Xie, Ru - Suomen Pankki - 2013

Using a novel proxy of investors’ speculative demand constructed from online search interest in “concept stocks”, we examine how speculative demand affects the returns and trading volume of Chinese stock indices. We find that returns and trading volume increase with the contemporaneous...

Persistent link: https://www.econbiz.de/10010691919

Can firms learn by observing? Evidence from cross-border M&As

Francis, Bill B.; Hasan, Iftekhar; Sun, Xian; Waisman, Maya - Suomen Pankki - 2014

In the presence of high uncertainty and limited experience, can observing the actions of other acquiring predecessors help firms make better acquisition decisions? Using a sample of cross-border M&As conducted by US acquirers in developing countries, we document a positive and significant...

Persistent link: https://www.econbiz.de/10010945113

The risk of financial intermediaries

Delis, Manthos D.; Hasan, Iftekhar; Tsionas, Efthymios G. - Suomen Pankki - 2014

This paper reconsiders the formal estimation of bank risk using the variability of the profit function. In our model, point estimates of the variability of profits are derived from a model where this variability is endogenous to other bank characteristics, such as capital and liquidity. We...

Persistent link: https://www.econbiz.de/10010945115

Equilibrium unemployment with credit and labour market imperfections

Koskela, Erkki; Stenbacka, Rune - Suomen Pankki - 2001

We study the role of labour and credit market imperfections in the determination of equilibrium unemployment. In the credit market, loan contracts are negotiated between financiers and firms, both of which have bargaining power, while firms and organized labour bargain over the base wage. The...

Persistent link: https://www.econbiz.de/10005207138

Simulation-based stress testing of banks’ regulatory capital adequacy

Peura, Samu; Jokivuolle, Esa - Suomen Pankki - 2003

of this confidence level to data on actual bank capital ratios, which enables a ceteris-paribus extrapolation of bank …

Persistent link: https://www.econbiz.de/10005207153

Rating targeting and the confidence levels implicit in bank capital

Jokivuolle, Esa; Peura, Samu - Suomen Pankki - 2006

The solvency standards implicit in bank capital levels, as reported eg in Jackson et al (2002), are much higher than those required for top ratings, if standard single period economic capital models are taken se-riously. We explain this excess capital puzzle by forward looking rating targeting...

Persistent link: https://www.econbiz.de/10005207164

Leverage and growth: effect of stock options

Francis, Bill; Hasan, Iftekhar; Sharma, Zenu - Suomen Pankki - 2011

This paper investigates the potential effects of stock options on managers’ investment decisions and therefore on a firm’s growth or, alternatively, on its leverage-growth relationship. To structure the analysis addressing this issue, the paper utilizes a framework establishing a negative...

Persistent link: https://www.econbiz.de/10009358948

Asymmetric benchmarking in bank credit rating

Shen, Chung-Hua; Huang, Yu-Li; Hasan, Iftekhar - Suomen Pankki - 2012

when bank financial ratios remain constant. Countries are divided among those with low and high information asymmetry. The … financial ratios on ratings are enhanced in low information asymmetry countries but reduced in countries with high information …–2008. The estimated results show that the effects of financial ratios on ratings are significantly affected by information …

Persistent link: https://www.econbiz.de/10010548599

Bank relationships and firms’ financial performance: the Italian experience

Castelli, Annalisa; Dwyer, Gerald P; Hasan, Iftekhar - Suomen Pankki - 2009

We examine the connection between the number of bank relationships and firms’ performance using a unique data set on Italian small firms for which banks are a major source of financing. Our evidence indicates that return on equity and return on assets decrease as the number of bank...

Persistent link: https://www.econbiz.de/10008502565