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This study develops a multi-period structural model to value bank subordinated debt (subdebt) under different … risks, bank characteristics and regulatory policies affect subdebt prices and yield spreads. It finds that the … have the opposite effects. Also, subdebt spreads are less sensitive to bank risk when PCA is imposed than when capital …
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This paper studies whether banks charge higher or lower interest rates on loans to firms with overconfident CEOs. It establishes a theoretical model to show the relationship between the loan rate and overconfidence of the borrowing firm's CEO. It also conducts empirical analyses to test the...
Persistent link: https://www.econbiz.de/10013000941
We study whether bank CEO optimism (optimistic bank) plays a role in technological progress. We find that optimistic … bank CEO optimism helps to facilitate corporate innovation …
Persistent link: https://www.econbiz.de/10012964679
interconnectedness on the banks' failure probability can be alleviated if bank capital regulation is properly designed. This paper … supports the conclusion in Allen and Gale (2000) that a complete financial system in which each bank is connected to all the …
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