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Persistent link: https://www.econbiz.de/10009765543
We study the interaction between borrowers' and banks' solvency in a quantitative macroeconomic model with financial frictions in which bank assets are a portfolio of defaultable loans. We show that ex-ante imperfect diversification of bank lending generates bank asset returns with limited...
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Cross-border mergers and acquisitions (M&As) sharply increased over the last two decades. It is often pointed out that cross-border capital reallocation is partly the result of financial liberalization policies, government policies and regional agreements. In this paper, we identify some of the...
Persistent link: https://www.econbiz.de/10003831845
This paper studies the bilateral drivers of mergers and acquisitions (M&As) between European banks. Two findings document that banks use M&A as a device to leverage their expertise rather than to diversify. (i) Following the literature on matrimonial matching by using a binary logit model, the...
Persistent link: https://www.econbiz.de/10013265942
We analyze how corporate reorganization and liquidation change labor reallocation during bankruptcy using randomized … bankruptcy on employee earnings, even with most workers leaving reorganized firms. We examine plausible mechanisms and find …
Persistent link: https://www.econbiz.de/10015176866
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; bankruptcy costs ; price level volatility ; optimal monetary policy ; stabilization policy …
Persistent link: https://www.econbiz.de/10003969263
Homestead exemptions to personal bankruptcy allow households to retain their home equity up to a limit determined at … the state level. Households that may experience bankruptcy thus have an incentive to bias their portfolios towards home … bankruptcy on account of unpaid medical bills. The bias is further stronger for households with mortgage finance, shorter house …
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