Similar Search Results

Keijsers, Bart; Diris, Bart; Kole, Erik - 2015

Cyclicality in the losses of bank loans is important for bank risk management. Because loans have a different risk profile than bonds, evidence of cyclicality in bond losses need not apply to loans. Based on unique data we show that the default rate and loss given default of bank loans share a...

Persistent link: https://www.econbiz.de/10010515860

Will Islamic banking make the world less risky? : an empirical analysis of capital structure, risk shifting and financial stability

Farooq, Moazzam; Wijnbergen, Sweder van; Zaheer, Sajjad - 2015

We use a classic Merton credit risk framework to argue that Islamic Banking Institutions (IBIs) face less incentive to take on risks than Conventional Banking Institutions (CBI). IBIs have less incentive for risk shifting both in and outside of distress situations. We test and confirm this...

Persistent link: https://www.econbiz.de/10010532124

Short-selling, leverage and systemic risk

Pais, Amelia; Stork, Philip - 2013

financial institutions, especially for institutions with high leverage. This study uses Extreme Value Theory to estimate the …

Persistent link: https://www.econbiz.de/10010226885

Disagreement and flexibility : a theory of optimal security issuance and capital structure

Boot, Arnoud W. A.; Thakor, Anjan V. - 2002

ofthis theory of capital structure evolution is that optimal capital structure is essentiallydynamic, and depends on the firm …’s stock price, implying that firms issue equity when stockprices are high and debt when stock prices are low. The theory … testablepredictions. Moreover, the theory can rationalize the use of debt in the absence of taxes,agency costs or signaling considerations. …

Persistent link: https://www.econbiz.de/10011332820

Risk attitude and profits among small enterprises in Nigeria

Lammers, Judith; Willebrands, Daan; Hartog, Joop - 2010

Persistent link: https://www.econbiz.de/10003973997

Risk attitudes and profits among small enterprises in Nigeria

Lammers, Judith; Willebrands, Daan; Hartog, Joop - 2010

This paper analyses the effect of risk attitudes of firm owners on profits among micro and small enterprises (MSEs) in Lagos, Nigeria. Higher risk perceptions are shown to have a significant positive effect on profits, whereas risk propensity has a negative or no effect. Education, age, being...

Persistent link: https://www.econbiz.de/10011380730

Limiting limited liability

Dari-Mattiacci, Guiseppe - 2006

Limited liability may result in inefficient accident prevention, because a relevant portion of the expected harm is externalized on victims. This paper shows that under some restrictive conditions further limiting liability by means of a liability cap can improve caretaking.

Persistent link: https://www.econbiz.de/10011349185

The multi-state latent factor intensity model for credit rating transitions

Koopman, Siem Jan; Lucas, André; Monteiro, André Antonio - 2006

A new empirical reduced-form model for credit rating transitions is introduced. It is a parametric intensity-based duration model with multiple states and driven by exogenous covariates and latent dynamic factors. The model has a generalized semi-Markov structure designed to accommodate many of...

Persistent link: https://www.econbiz.de/10011346452

Credit ratings as coordination mechanisms

Boot, Arnoud W. A.; Milbourn, Todd - 2002

In this article, we provide a novel rationale for credit ratings. The rationale that we propose is that credit ratings serve as a coordinating mechanism in situations where multiple equilibria can obtain. We show that credit ratings provide a focal point for firms and their investors, and...

Persistent link: https://www.econbiz.de/10011326954

The multi-state latent factor intensity model for credit rating transitions

Koopman, Siem Jan; Lucas, André; Monteiro, André Antonio - 2005

Persistent link: https://www.econbiz.de/10002983309

1
2
3
4
5
6
7
8
9
10
Next
Last