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While companies have emerged as very proactive donors in the wake of recent major disasters like Hurricane Katrina, it remains unclear whether that corporate generosity generates benefits to firms themselves. The literature on strategic philanthropy suggests that such philanthropic behavior may...
Persistent link: https://www.econbiz.de/10010986370
The crisis enveloping global financial markets since August 2007 was triggered by actual and prospective credit losses on US mortgages. Was the United States just unlucky to have been the first to experience a housing crisis? Or was it inherently more susceptible to one? I examine the limited...
Persistent link: https://www.econbiz.de/10012710907
influence bank decision-making.quot; These papers do not attempt to disentangle the effects of capital regulation versus market … accounting does not affect regulatory capital calculations. This is consistent with bank managers acting as if they are concerned …
Persistent link: https://www.econbiz.de/10012711586
decisions. In equilibrium, lending decisions, capital buffer and the probability of bank failure are endogenously determined …
Persistent link: https://www.econbiz.de/10012711664
Prompt Corrective Action (PCA) prescribes prompt and deterministic termination of banks with insufficient levels of book-value capital. This paper investigates whether reliance on book-value capital is a good policy choice and if PCA is an optimal regulatory approach. I use a variant of DeMarzo...
Persistent link: https://www.econbiz.de/10012711686
This paper explores the pricing of debt in a financial system where the assets that borrowers hold to meet their obligations include claims against other borrowers. Assessing financial claims in a system context captures features that are missing in a partial equilibrium setting. It is possible...
Persistent link: https://www.econbiz.de/10012711729
This study examines bank risk by investigating the equity and loan portfolio characteristics of publicly-traded bank …
Persistent link: https://www.econbiz.de/10012711779
This paper proposes that bank runs are unique equilibrium outcomes instead of self-fulfilling prophecies. By assuming … economy. A bank run would occur if and only if depositors perceive a low return on bank assets. Furthermore, a panic situation … offer a demand-deposit contract that is susceptive to bank runs …
Persistent link: https://www.econbiz.de/10012711889
financing have been less than transparent, it appears to have burdened The People's Bank of China (PBoC) with greater risks to …
Persistent link: https://www.econbiz.de/10012711896
property prices and bank lending. We develop a reduced-form theoretical model which suggests bank lending is closely related to … largely driven by the dynamic linkage between the commercial property sector, bank credit and the macroeconomy. Cross … expansion, rather than excessive bank lending boosting property prices. In addition, GDP has an important influence on both …
Persistent link: https://www.econbiz.de/10012711925