Showing 1 - 10 of 1,464
Financial institutions constitute an increasingly important cornerstone of capital markets, yet research at the intersection of asset management contracts and asset pricing remains sparse. In this paper, I study how externalities of managerial contracts affect asset prices in the context of...
Persistent link: https://www.econbiz.de/10012834756
We show a dark-side view of internal capital markets in which one segment exploits the funding advantage of another profitable segment to relax its financial constraints. Results demonstrate that bank holding companies (BHCs) shield their nonbank segments, and not their bank segments, from...
Persistent link: https://www.econbiz.de/10012900120
This paper studies the impact of banks’ dividend restrictions on the behavior of their institutional investors. Using an identification strategy that relies on the within investor variation and a difference in difference setup, I find that funds permanently decrease their ownership shares at...
Persistent link: https://www.econbiz.de/10014348587
This paper studies the impact of banks' dividend restrictions on the behavior of their institutional investors. Using an identification strategy that relies on the within investor variation and a difference in difference setup, I find that funds permanently decrease their ownership shares at...
Persistent link: https://www.econbiz.de/10014308197
Making use of a structural model that allows for optimal liquidity management, we study the role that repos play in a bank's financing structure. In our model the bank's assets consist of illiquid loans and liquid reserves and are financed by a combination of repos, long–term debt, deposits...
Persistent link: https://www.econbiz.de/10011293473
This paper examines the effects of the main bank's equity-debt structure, (i.e., equity stakes and debt claims) on firm performance and financial policies in Japan over the period 1977-1987. Results show that firms with main bank equity stakes have lower performance than those without. However,...
Persistent link: https://www.econbiz.de/10013136505
The recent report by Standards and poor has generated a lot of controversies. While some commentators are saying such report should be discarded others are clamouring for its proper perusal and examination. Investors are beginning to panic over their investments. The question in the lips of...
Persistent link: https://www.econbiz.de/10013139663
We review the recent academic and policy literature on bank loan loss provisioning (LLP) to identify several advances in the literature, to highlight some challenges in LLP research and suggest possible directions for future research with some concluding remarks. Among other things, we observe...
Persistent link: https://www.econbiz.de/10012964664
This paper analyses the effects associated with using the magnitude of realised loan losses as a basis for performance measurement and compensation to credit risk team in banks. Paying and rewarding credit risk professionals on the basis of reporting fewer provisions or lower loan losses...
Persistent link: https://www.econbiz.de/10012902590
We provide an extensive analysis of the payout policy of U.S. banks during the crisis to examine potential risk-shifting and signaling motives of banks. We estimate an empirical model of bank payouts to assess the extent to which changes in payouts are commensurate with worsening fundamentals....
Persistent link: https://www.econbiz.de/10012904206