Narrow search
Showing 1 - 10 of 244
Cover Image
Precautionary Hoarding of Liquidity and Inter-Bank Markets: Evidence from the Sub-prime Crisis
Acharya, Viral V.; Merrouche, Ouarda - National Bureau of Economic Research (NBER) - 2010
this structural break, settlement bank liquidity had a precautionary nature in that it rose on calendar days with a large … overnight inter-bank rates to rise, an effect virtually absent in the pre-crisis period. This liquidity effect on inter-bank … stronger banks operating through the inter-bank markets. …
Persistent link: https://www.econbiz.de/10008680932
Cover Image
Competition for Managers, Corporate Governance and Incentive Compensation
Acharya, Viral V. - 2011
We propose a model in which firms use corporate governance as part of an optimal compensation scheme: better governance incentivizes managers to perform better and thus saves on the cost of providing pay for performance. However, when managerial talent is scarce, firms compete to attract better...
Persistent link: https://www.econbiz.de/10013128452
Cover Image
Competition among banks, capital requirements and international spillovers
Acharya, Viral V. - In: Economic notes : economic review of Banca Monte dei … 30 (2001) 3, pp. 337-358
Persistent link: https://www.econbiz.de/10001633983
Cover Image
Risk-sharing and the creation of systemic risk
Acharya, Viral V.; Iyer, Aaditya M.; Sundaram, Rangarajan K. - In: Journal of Risk and Financial Management 13 (2020) 8, pp. 1-18
We address the paradox that financial innovations aimed at risk-sharing appear to have made the world riskier. Financial innovations facilitate hedging idiosyncratic risks among agents; however, aggregate risks can be hedged only with liquid assets. When risk-sharing is primitive, agents...
Persistent link: https://www.econbiz.de/10012611389
Cover Image
Robust capital regulation
Acharya, Viral V.; Mehran, Hamid; Schuermann, Til; … - 2011
Banks' leverage choices represent a delicate balancing act. Credit discipline argues for more leverage, while balance-sheet opacity and ease of asset substitution argue for less. Meanwhile, regulatory safety nets promote ex post financial stability, but also create perverse incentives for banks...
Persistent link: https://www.econbiz.de/10008987101
Cover Image
Contingent Credit Under Stress
Acharya, Viral V.; Jager, Maximilian; Steffen, Sascha - National Bureau of Economic Research - 2023
widespread stress, with adverse affects on bank intermediation thereafter. We discuss the bank capital and the bank funding … conclude by discussing the increasing extension of bank credit lines to non-bank financial intermediaries, as well as the role …
Persistent link: https://www.econbiz.de/10014437040
Cover Image
Bank Use of Sovereign CDS in the Eurozone Crisis : Hedging and Risk Incentives
Acharya, Viral V. - 2019
protection selling in CDS, the effect being weaker when sovereign risk is high. Bank and country risk variables are mostly not … building a complete picture and understanding fully the economic drivers of the bank-sovereign nexus of risk …
Persistent link: https://www.econbiz.de/10012898392
Cover Image
Lending Implications of U.S. Bank Stress Tests : Costs or Benefits?
Acharya, Viral V. - 2017
The U.S. bank stress tests aim to improve financial system stability. However, they may also affect bank credit supply …
Persistent link: https://www.econbiz.de/10012955765
Cover Image
Bank Lines of Credit as Contingent Liquidity : Covenant Violations and Their Implications
Acharya, Viral V. - 2017
We examine the relation between the financial health of banks and their willingness to supply capital to borrowers under previously committed credit lines. We show that during the collapse of the Asset Backed Commercial Paper market in the last quarter of 2007 and the first half of 2008, banks...
Persistent link: https://www.econbiz.de/10012945607
Cover Image
Bank Lines of Credit as Contingent Liquidity : A Study of Covenant Violations and Their Implications
Acharya, Viral V. - 2014
We study how the consequences of violations of covenants associated with bank lines of credit to firms vary with the … the heart of a new bank liquidity channel. This channel complements the traditional bank lending channel, which focuses on …
Persistent link: https://www.econbiz.de/10013051172