Similar Search Results

Political connections and the process of going public: evidence from China

Francis, Bill B; Hasan, Iftekhar; Sun, Xian - Suomen Pankki - 2009

We examine how political connections impact the process of going public. Specifically, we test how political connections impact the pricing of newly offered shares, the magnitude of underpricing, and the fixed cost of going public. Based on experiences of the new public firms in the Chinese...

Persistent link: https://www.econbiz.de/10005648924

Law of finance: Evidence from Finland

Hyytinen, Ari; Kuosa, Iikka; Takalo, Tuomas - Suomen Pankki - 2002

Although it is widely acknowledged that the benefits of corporate governance reform could be substantial, systematic evidence on such reforms is scant. We both document and evaluate a contemporary corporate governance reform by constructing 18 measures of shareholder and creditor protection for...

Persistent link: https://www.econbiz.de/10005648951

Home preference at selecting financial advisors in cross-border M&As

Francis, Bill B.; Hasan, Iftekhar; Sun, Xian - Suomen Pankki - 2012

This paper examines the determinants of the choice of financial advisors and their impact on the announcement effects of US acquirers in cross-border M&As. Two hypotheses are tested: one pertains to the acquiring firms’ home preference in selecting financial advisors, and the other relates to...

Persistent link: https://www.econbiz.de/10010587737

Why is equity capital expensive for opaque banks?

Kauko, Karlo - Suomen Pankki - 2012

-Miller irrelevance theorem. This paper combines dividend signalling theories and the Diamond-Dybvig bank run model. An opaque bank must … costly liquidations if the return on assets has been poor, but not paying the dividend might cause panic and trigger a run on … the bank. The more equity has been issued, the more liquidations are needed during bad times to pay the expected dividend …

Persistent link: https://www.econbiz.de/10010611665

Are adverse selection models of debt robust to changes in market structure?

Vauhkonen, Jukka - Suomen Pankki - 2003

Many adverse selection models of standard one-period debt contracts are based on the following seemingly innocuous assumptions. First, entrepreneurs have private information about the quality of their return distributions. Second, return distributions are ordered by the monotone likelihood-ratio...

Persistent link: https://www.econbiz.de/10005423696

Investor protection and business creation

Hyytinen, Ari; Takalo, Tuomas - Suomen Pankki - 2003

We study the effects of investor protection on the availability of external finance, entrepreneurship, and creation of new firms in an equilibrium search model of private capital markets. In addition to search frictions, we examine contract frictions, specifically interim and ex post moral...

Persistent link: https://www.econbiz.de/10005207158

Asymmetric information in credit markets and entrepreneurial risk taking

Vesala, Timo - Suomen Pankki - 2004

The paper constructs a search-theoretic model of credit markets with a bilateral trading mechanism that enables the manageable introduction of asymmetric information. Borrowers´ success probabilities are unobservable to financiers, but the degree of risk in observable projects can be used as a...

Persistent link: https://www.econbiz.de/10005207166

(Un)anticipated monetary policy in a DSGE model with a shadow banking system

Verona, Fabio; Martins, Manuel M. F.; Drumond, Inês - Suomen Pankki - 2013

Motivated by the U.S. events of the 2000s, we address whether a too low for too long interest rate policy may generate a boom-bust cycle. We simulate anticipated and unanticipated monetary policies in state-of-the-art DSGE models and in a model with bond financing via a shadow banking system, in...

Persistent link: https://www.econbiz.de/10010699285

Does State Street lead to Europe? The case of financial exchange innovations

Komulainen, Mari; Takalo, Tuomas - Suomen Pankki - 2009

We study whether and to what extent financial exchange innovations are in practice patentable in Europe. We find that exchange-related applications initially increased significantly after the State Street decision but subsequently decreased. The clear majority (65%) of applications come from the...

Persistent link: https://www.econbiz.de/10008496439

Relationship lending and competition: Higher switching cost does not necessarily imply greater relationship benefits

Vesala, Timo - Suomen Pankki - 2005

This paper studies relationship lending in a framework where the cost of switching banks measures the degree of banking competition. The relationship lender’s (insider bank’s) informational advantage creates a lock-in effect, which is at its height when the switching cost is infinitesimal....

Persistent link: https://www.econbiz.de/10005190762