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The pattern of financial linkages is important in many areas of banking and finance. Yet bilateral linkages are often unknown, and maximum entropy serves as the leading method for estimating unobserved counterparty exposures. This paper proposes an efficient alternative that combines...
Persistent link: https://www.econbiz.de/10010249740
When banks choose similar investment strategies, the financial system becomes vulnerable to common shocks. Banks decide about their investment strategy ex-ante based on a private belief about the state of the world and a social belief formed from observing the actions of peers. When the social...
Persistent link: https://www.econbiz.de/10010405430
hostile behavior exhibited by managers. The motivations driving managers to adopt such behaviors are insufficiently understood …. To explore this phenomenon, we conducted a laboratory experiment examining the relationship between managers' use of … unfriendly leadership and labor market competition. We discern two labor market states: excess labor demand, where managers …
Persistent link: https://www.econbiz.de/10014584153
-the-counter markets for liquidity in Germany: the interbank market for credit and for derivatives. We use end-of-quarter data from the …
Persistent link: https://www.econbiz.de/10010405454
In this paper, we focus on the interconnectedness of banks and the price they pay for liquidity. We assess how the concentration of credit relationships and the position of a bank in the network topology of the system influence the bank’s ability to meet its liquidity demand. We use quarterly...
Persistent link: https://www.econbiz.de/10010238510
Directed links in cash flow networks affect the cross-section of price exposures and market prices of risk in equilibrium. In an asset pricing model featuring mutually exciting jumps, we measure directedness through an asset's shock propagation capacity (spc). In the model, we prove: (i) Cash...
Persistent link: https://www.econbiz.de/10011900728
misalignment between managers and the firm, these two purposes are in conflict. This is because the worker with the largest private …: employees that create lower expected profits as managers have yet better promotion prospects. That finding still holds when the … firm owner optimally chooses the promotion rule, the degree of delegation, and wage payments to both employees and managers …
Persistent link: https://www.econbiz.de/10012138859
In this study, we address the question of why some CEOs stay in office during a performance downturn while others don't. Based on a social capital perspective we assume that (1) the social capital endowment of an underperforming CEO may reduce the risk of getting dismissed and that (2) the...
Persistent link: https://www.econbiz.de/10008905946
Uniquely amongst industrialized countries worldwide, Germany does not impose a general speed limit on highways. This is … emissions for two highway sections in the federal state of North Rhine-Westphalia, Germany. The results are obtained by a …
Persistent link: https://www.econbiz.de/10011934422
until mid-March by the WHO, the EU, as well as responsible authorities in Germany and other countries. Meanwhile, other … Schengen Area. Germany, too, changed its line, and closed its borders to France, Switzerland, and Austria and on 18 March also … wiederholt von der WHO, der EU sowie den zuständigen Behörden in Deutschland und anderen Ländern vertreten wurde. In der …
Persistent link: https://www.econbiz.de/10012299312