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Allen, Franklin - In: Finance, (pp. 793-837). 1995

Persistent link: https://www.econbiz.de/10001317994

MODIS: A Market-Oriented Deposit Insurance Scheme

Vaez-Zadeh, Reza; Xie, Danyang; Zoli, Edda - EconWPA - 2002

This paper argues that an optimal deposit insurance scheme would allow the level of insurance coverage to be determined by the market. Based on this principle, the paper proposes an insurance scheme that minimizes distortions and embodies fairness and credibility, two essential characteristics...

Persistent link: https://www.econbiz.de/10005413124

Banken, instituties en zachte budgetbeperkingen tijdens de transitie

Haas, Ralph de - EconWPA - 2002

De juridische bescherming van banken en aandeelhouders beïnvloedt de omvang en kwaliteit van het financiële systeem en daarmee de economische groei. Gebrekkige (juridische) instituties in transitie-economieën kunnen de economische ontwikkeling van deze landen dan ook afremmen. Zo dragen...

Persistent link: https://www.econbiz.de/10005413152

On valuing corporate debt with the volatility of corporate assets evolving according to an Ornstein-Uhlenbeck process

Ergashev, Bakhodir - EconWPA - 2002

In this paper the problem of valuing corporate debt with possibility of default is considered. It is assumed that the volatility of the value of a firm's assets evolves according to an Ornstein-Uhlenbeck process and default occurs only if the value of corporate assets falls below an exogenously...

Persistent link: https://www.econbiz.de/10005413159

The U-shaped Investment Curve: Theory and Evidence

Cleary, Sean; Povel, Paul; Raith, Michael - EconWPA - 2003

generate the revenue that enables the firm to repay. We test our theory using a data set with close to 100,000 firm …

Persistent link: https://www.econbiz.de/10005413170

Asset Prices and Banking Distress: A Macroeconomic Approach

Peter, Goetz von - EconWPA - 2004

This paper links banking with asset prices in a monetary macroeconomic model. The main innovation is to consider how falling asset prices affect the banking system through wide-spread borrower default, while deriving explicit solutions and balance sheet effects even far from the steady state. We...

Persistent link: https://www.econbiz.de/10005413177

Risk Disaggregation And Credit Risk Valuation In The Merton Like Way

Gatfaoui, Hayette - EconWPA - 2003

Recent literature focuses on the systematic and specific components of credit risk (Dichev [1998], Wilson [1998 … insights by distinguishing between one systematic risk component and one idiosyncratic risk component in credit risk valuation …. Such a risk disaggregation allows us to state an analytical formula for valuing European type calls. Given that corporate …

Persistent link: https://www.econbiz.de/10005413215

Financial Market Imperfections and Investment: an Overview

Calmès, Christian - EconWPA - 2004

The paper examines the interpretation of firms' investment-cash flow sensitivity as an artifact of financial market imperfection. Two alternative explanations of the financial constraints are compared. One is based on informational problems (asymmetric information). The other focuses on limited...

Persistent link: https://www.econbiz.de/10005077038

Liquidation Triggers and the Valuation of Equity and Debt

Galai, Dan; Raviv, Alon; Wiener, Zvi - EconWPA - 2003

Net-worth covenants, as introduced by Black and Cox (1976), provide the firm’s bondholders with the right to force reorganization or liquidation if the value of the firm falls below a certain threshold. In the event of default, however, many bankruptcy codes stipulate an automatic stay of...

Persistent link: https://www.econbiz.de/10005561605

Determinants of the loan loss allowance: some cross-country comparisons

Hasan, Iftekhar; Wall, Larry D. - EconWPA - 2004

This paper analyses the determinants of banks’ loan loss allowances for samples of US banks and three non-US samples: a group of 21 countries, Canada and Japan. The model includes fundamental (or non-discretionary) determinants of the allowance such as non-performing loans, and discretionary...

Persistent link: https://www.econbiz.de/10005561637