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We study the effect of rollover risk on the risk of default using a comprehensive database of U.S. industrial firms during 1986–2013 This article is the most thoroughgoing empirical research to date to support the existence of a rollover risk effect on the risk of default. A one standard...
Persistent link: https://www.econbiz.de/10013033588
This empirical examination of the effect of rollover risk on default risk uses a database of U.S. industrial firms during 1986-2011. This article represents the most comprehensive empirical study to date to support the existence of a rollover risk effect on default risk. This paper investigates...
Persistent link: https://www.econbiz.de/10013028447
We examine whether CDS contracts written on individual banks are effective leading indicators of bank financial distress during a period of systemic bank crisis. Changes in CDS spreads are found to yield a robust signal of failure across a set of European and US banks, in keeping with indirect...
Persistent link: https://www.econbiz.de/10012903782
The referendum for leaving of Great Britain from EU or so called Brexit raised the question whether is always profitable for one country – member-state of EU to be part of the Union. The article is the first of a small series of that kind on the subject of some losses which incurs one member...
Persistent link: https://www.econbiz.de/10012943959
Banks are regarded as special institutions, and regulated and supervised heavily than other institutions. However, regulation and supervision cannot achieve zero failure regimes. Banks fail like any other commercial entities, and will continue to fail. Failure of a bank may trigger formal...
Persistent link: https://www.econbiz.de/10013052778
On 3 December EY hosted a SUERF conference on banking reform with Sir Howard Davies, the Chairman of RBS, and Dame Colette Bowe, the Chairman of the Banking Standards Board, as the two keynote speakers. Professor David Miles (Imperial College) gave the SUERF 2015 Annual Lecture on Capital and...
Persistent link: https://www.econbiz.de/10011554963
Persistent link: https://www.econbiz.de/10003830621
The financial crisis brought to light weakness in the assessments of risks and vulnerabilities in banks. Consequently, an insight into how the ownership structure of a bank affects investment decisions, performance and ultimately insolvency risk - the focus of this paper - is crucial. Our...
Persistent link: https://www.econbiz.de/10013128385
an endogenously determined decision made by equity holders, to analyze the joint effect of market liquidity and interest … rate sensitive fundamentals of collateral assets' on the survival times of banks relying on day-to-day short-term finance …
Persistent link: https://www.econbiz.de/10013113740
We investigate two competing explanations for commercial bank distress during financial crises: liquidity shortages and … solvency concerns. If liquidity shortages cause distress, a lender of last resort can help by providing funds to banks having … banks with existing solvency problems, then liquidity provision may not spur lending. Our analysis of commercial banks shows …
Persistent link: https://www.econbiz.de/10013066422