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Multiple buffer CoCos and their impact on financial stability

Neamtu, Ioana - 2020

global games methodologies. Contingent convertible bonds are meant to act as a bail-in mechanism for banks, where CoCo debt …

Persistent link: https://www.econbiz.de/10012161027

Financial disclosure and market transparency with costly information processing

Di Maggio, Marco; Pagano, Marco - 2014

We study a model where some investors ("hedgers") are bad at information processing, while others ("speculators") have superior information-processing ability and trade purely to exploit it. The disclosure of financial information induces a trade externality: if speculators refrain from trading,...

Persistent link: https://www.econbiz.de/10010424992

The fundamental equation in tourism finance

McAleer, Michael - 2015

The purpose of the paper is to present the fundamental equation in tourism finance that connects tourism research to empirical finance and financial econometrics. The energy industry, which includes, oil, gas and bio-energy fuels, together with the tourism industry, are two of the most important...

Persistent link: https://www.econbiz.de/10011391546

The political economy of financial systems

Haber, Stephen H.; Perotti, Enrico C. - 2008

This survey reviews the literature on the political economy of financial structure, broadly defined to include the size of capital markets and banking systems as well as the distribution of access to external finance across firms.The theoretical literature on the institutional basis for...

Persistent link: https://www.econbiz.de/10011374399

The political economy of financial fragility

Feijen, Erik; Perotti, Enrico C. - 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/10011348359

Advances in financial risk management and economic policy uncertainty : an overview

Hammoudeh, Shawkat; McAleer, Michael - 2014

Financial risk management is difficult at the best of times, but especially so in the presence of economic uncertainty and financial crises. The purpose of this special issue on "Advances in Financial Risk Management and Economic Policy Uncertainty" is to highlight some areas of research in...

Persistent link: https://www.econbiz.de/10010366930

Monopoly power limits hedging

Muermann, Alexander; Shore, Stephen H. - 2008

When a spot market monopolist participates in a derivatives market, she has an incentive to deviate from the spot market monopoly optimum to make her derivatives market position more profitable. When contracts can only be written contingent on the spot price, a risk-averse monopolist chooses to...

Persistent link: https://www.econbiz.de/10003831235

Investor protection and entry

Perotti, Enrico C.; Volpin, Paolo - 2006

Entry requires external finance, especially for less wealthy entrepreneurs, so poor investor protection limits competition. We model how incumbents lobby harder to block access to finance to entrants when politicians are less accountable to voters. In a broad cross-section of countries and...

Persistent link: https://www.econbiz.de/10011350369

The Covid pandemic in the market : infected, immune and cured bonds

Zaghini, Andrea - 2021

By focusing on the cost conditions at issuance, I find that not only the Covid-19 pandemic effects were different across bonds and firms at different stages, but also that the market composition was significantly affected, collapsing on investment- grade bonds, a segment in which the share of...

Persistent link: https://www.econbiz.de/10012429638

Regulating the financial cycle : an integrated approach with a leverage ratio

Schoenmaker, Dirk; Wierts, Peter - 2015

We propose a regulatory approach for restricting debt financing as an amplification mechanism across the financial … system. A small stylised model illustrates the trade-off between static and time varying limits on leverage in dampening the … focuses instead on debt financing, endogenous feedback mechanisms and resource allocation. It explicitly addresses the …

Persistent link: https://www.econbiz.de/10010532609