Showing 1 - 10 of 43
Using a supplier–client matched sample, we study the effect of the 2007–2008 financial crisis on between-firm liquidity provision. Consistent with a causal effect of a negative shock to bank credit, we find that firms with high precrisis liquidity levels increased the trade credit extended...
Persistent link: https://www.econbiz.de/10010665557
Credit default swaps (CDS) have been growing in importance in the global financial markets. However, their role has been hotly debated, in industry and academia, particularly since the credit crisis of 2007–2009. We review the extant literature on CDS that has accumulated over the past two...
Persistent link: https://www.econbiz.de/10011103415
We provide evidence that existing studies relating financial condition to product market cooperation produce mixed results because of unique features of the industries examined. In particular, all evidence suggesting that poor financial condition decreases cooperation comes from the airline...
Persistent link: https://www.econbiz.de/10011264354
We investigate cost of capital, information asymmetry, and market liquidity of listed family firms vs. non-family firms in Japan. First, we find that the cost of debt is lower and the cost of equity is higher for family firms than non-family firms, but the differences are not significant. The...
Persistent link: https://www.econbiz.de/10011077766
Competitive environment enables healthy operation only to those companies that are able to perfectly manage not only the business side of the entrepreneurial activities (sale of products and services surely is purpose of existence of any company), but also the financial side which constitutes a...
Persistent link: https://www.econbiz.de/10011195006
This paper gives a detailed explanation of why a central bank without fiscal backing can lose control of inflation. Moreover, it argues that such danger emerged only recently for the ECB due to its increasing quasi-fiscal activities. Finally we argue that it might not generally be a good idea to...
Persistent link: https://www.econbiz.de/10010827744
We investigate the liquidity management of 62 Dutch banks between January 2004 and March 2010, when these banks were subject to a liquidity regulation that is very similar to Basel III’s Liquidity Coverage Ratio (LCR). We find that most banks hold more liquid assets against their stock of...
Persistent link: https://www.econbiz.de/10010738278
We model the optimal liquidation behavior of a venture capital or non-diversified asset management firm faced with a sale of concentrated security holdings. As the firm?s stake is large, its sales can lead to permanent and temporary price depressions. At the optimum, the institution chooses the...
Persistent link: https://www.econbiz.de/10010765326
The inverse association of capitalization and performance is found to hold over a broader range of firms than has been previously studied. This result is found by merging data for listed United States firms with data for listed Australian companies, which are on average much smaller than their...
Persistent link: https://www.econbiz.de/10010790628
This paper examines whether a firm's commitment to increase transparency affects firm value and liquidity by studying firms' voluntary decision to be listed in “special segments” created by Euronext. The empirical analysis finds positive valuation effects for firms that opted into the...
Persistent link: https://www.econbiz.de/10011052879