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The Effects of Uncertainty and CorporateGovernance on Firms' Demand for Liquidity

Baum, Christopher F.; Chakraborty, Atreya; Han, Liyan; … - Boston College / Department of Economics - 2009

We find that U.S. corporations' demand for liquidity is sensitive to two importantfactors: uncertainty facing the rm … important role inmanaging liquidity risks. Policy recommendations may not only be limited to changesin financial policy but may …

Persistent link: https://www.econbiz.de/10009302540

Corporate Liquidity Management andFuture Investment Expenditures

Baum, Christopher F.; Caglayan, Mustafa; Talavera, Oleksandr - Boston College / Department of Economics - 2009

This paper empirically examines whether additional future xed capital and R&D investmentexpenditures induce rms to accumulate cash reserves while considering therole of market imperfections. Implementing a dynamic framework on a panel of US, UKand German companies, we nd that rms make larger...

Persistent link: https://www.econbiz.de/10009302548

Sturm und Drang in Money Market Funds:When Money Market Funds Cease to BeNarrow

Jank, Stephan; Wedow, Michael - Centre for Financial Research <Köln> - 2010

This paper investigates the returns and °ows of German money marketfunds before and during the liquidity crisis of 2007 … papers. By doing sothey outperformed other funds as long as liquidity in the market washigh. Investing in less liquid assets … liquidity caused by the subprime crisis, illiquid fundsexperienced runs, while more liquid funds functioned as a safe haven. …

Persistent link: https://www.econbiz.de/10009302620

Tell-Tale Tails: A data driven approach to estimate unique market information shares

Grammig, Joachim; Peter, Franziska J. - Centre for Financial Research <Köln> - 2006

market design and liquidity, can beexploited to estimate unique information shares. The empirical application of the …

Persistent link: https://www.econbiz.de/10009302644

Automatic Stabilizers and Economic Crisis: US vs. Europe

Dolls, Mathias; Fuest, Clemens; Peichl, Andreas - Cologne Graduate School in Management, Economics and … - 2010

This paper analyzes the e¤ectiveness of the tax and transfer systemsin the European Union and the US to act as an automatic stabilizer in the currenteconomic crisis. We nd that automatic stabilizers absorb 38 per cent of a propor-tional income shock in the EU, compared to 32 per cent in the...

Persistent link: https://www.econbiz.de/10009302657

Market Belief, Trading Volume, Price Volatility, andLiquidity

Wang, Songtao - Swiss National Centre of Competence in Research North … - 2010

liquidity of stocks. Following Kurz and Motolese (2008), wepropose a simple theoretical model to show that the equilibrium stock …, it is shown in this paper that when market belief is more volatile,trading volume and liquidity decline while price …

Persistent link: https://www.econbiz.de/10009305076

Competition and the Cost of Debt

Valta, Philip - Swiss National Centre of Competence in Research North … - 2010

This paper empirically investigates how the intensity of product market competitionaffects the cost of debt. Using a large sample of loans to publicly traded US manufac-turing firms, I provide evidence that an intensification of product market competitionamong firms significantly...

Persistent link: https://www.econbiz.de/10009305077

Is shareholders´ strategic default behavior priced?Evidence from the international cross-section of stocks

Favara, Giovanni; Schroth, Enrique; Valta, Philip - Swiss National Centre of Competence in Research North … - 2010

We test whether the ´firms systematic equity risk reflects the shareholders´ incen-tives to default strategically on its debt. We use a standard real options model torelate the shareholders´strategic default behavior to frictions in the debt renegotia-tion procedure. We test its predictions...

Persistent link: https://www.econbiz.de/10009305083

The financial turmoil of 2007–?: a preliminary assessment and some policy considerations

Borio, Claudio E. V. - Bank für Internationalen Zahlungsausgleich <Basel> - 2008

The unfolding financial turmoil in mature economies has prompted the official and private sectors to reconsider policies, business models and risk management practices. Regardless of its future evolution, it already threatens to become one of the defining economic moments of the 21st century....

Persistent link: https://www.econbiz.de/10009305089

Money and Liquidity in Financial Markets

Nyborg, Kjell G.; Östberg, Per - Swiss National Centre of Competence in Research North … - 2010

We argue that there is a connection between the interbank market for liquidity and thebroader financial markets, which … has its basis in demand for liquidity by banks. Tightnessin the interbank market for liquidity leads banks to engage in …

Persistent link: https://www.econbiz.de/10009305106