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Strategic versus Financial Investors: The Role of Strategic Objectives in Financial Contracting

Arping, Stefan; Falconieri, Sonia - Tinbergen Institute

Strategic investors, such as corporate venture capitalists, engage in the financing of start-up firms to complement their core businesses and to facilitate the internalization of externalities. We argue that while strategic objectives make it more worthwhile for an investor to elicit high...

Persistent link: https://www.econbiz.de/10005016265

An Analysis of the Effects of the Severance Payment Reform on Credit to Italian SMEs

Calcagno, Riccardo; Kraeussl, Roman; Monticone, Chiara - Tinbergen Institute - 2008

We study the effects of the reform of the system of severance payments (TFR) of Italian employees on the cost and the access to credit for small and medium-size enterprises (SMEs). The most direct consequence of the reform is to reduce in the long run the amount of liquid assets available to...

Persistent link: https://www.econbiz.de/10005450759

Weak & Strong Financial Fragility

Geluk, J.L.; Haan, L. de; Vries, C.G. de - Tinbergen Institute - 2007

The stability of the financial system at higher loss levels is either characterized by asymptotic dependence or asymptotic independence. If asymptotically independent, the dependency, when present, eventually dies out completely at the more extreme quantiles, as in case of the multivariate...

Persistent link: https://www.econbiz.de/10005504968

Has the Basel II Accord Encouraged Risk Management During the 2008-09 Financial Crisis?

McAleer, Michael; Jimenez-Martin, Juan-Angel; … - Tinbergen Institute

management strategies performed during the 2008-09 financial crisis, evaluate how the financial crisis affected risk management … financial crisis. These issues are illustrated using Standard and Poor’s 500 Index, with an emphasis on how risk management … practices were monitored and encouraged by the Basel II Accord regulations during the financial crisis. …

Persistent link: https://www.econbiz.de/10005016261

A Real Options Perspective on R&D Portfolio Diversification

Bekkum, Sjoerd van; Pennings, Enrico; Smit, Han - Tinbergen Institute - 2007

This paper shows that the presence of conditional staging in R&D (Research & Development) has a critical impact on portfolio risk, and changes diversification arguments when a portfolio is constructed. When R&D projects exhibit option-like characteristics, correlation between projects plays a...

Persistent link: https://www.econbiz.de/10005016277

The Political Economy of Financial Fragility

Feijen, Erik; Perotti, Enrico - Tinbergen Institute - 2005

While financial liberalization has in general favorable effects, reforms in countries with poor regulation is often followed by financial crises. We explain this variation as the outcome of lobbying interests capturing the reform process. Even after liberalization, market investors must rely on...

Persistent link: https://www.econbiz.de/10005144400

Capital Structure and the Redeployability of Tangible Assets

Campello, Murillo; Giambona, Erasmo - Tinbergen Institute - 2011

We characterize the relation between corporate asset structure and capital structure by exploiting variation in the salability of tangible assets. Theory suggests that tangibility increases borrowing capacity because it allows creditors to more easily repossess a firm’’s assets. Tangible...

Persistent link: https://www.econbiz.de/10009209849

Backtesting Value-at-Risk using Forecasts for Multiple Horizons, a Comment on the Forecast Rationality Tests of A.J. Patton and A. Timmermann

Hoogerheide, Lennart F.; Ravazzolo, Francesco; Dijk, … - Tinbergen Institute - 2011

Patton and Timmermann (2011, 'Forecast Rationality Tests Based on Multi-Horizon Bounds', <I>Journal of Business & Economic Statistics</I>, forthcoming) propose a set of useful tests for forecast rationality or optimality under squared error loss, including an easily implemented test based on a...</i>

Persistent link: https://www.econbiz.de/10009322510

Conditional Probabilities and Contagion Measures for Euro Area Sovereign Default Risk

Zhang, Xin; Schwaab, Bernd; Lucas, Andre - Tinbergen Institute - 2011

The Eurozone debt crisis raises the issue of measuring and monitoring interconnected sovereign credit risk. We propose … further demonstrate the importance of capturing higher-order time-varying moments during times of crisis for the assessment of …

Persistent link: https://www.econbiz.de/10009386533

More Hedging Instruments may destablize Markets

Brock, William; Hommes, Cars; Wagener, Florian - Tinbergen Institute - 2006

This paper formalizes the idea that more hedging instruments may destabilize markets when traders are heterogeneous and adapt their behavior according to experience based reinforcement learning. We investigate three different economic settings, a simple mean-variance asset pricing model, a...

Persistent link: https://www.econbiz.de/10005795568