equity (market capitalization) a credit-spread-based correction for the value of shareholders' default option. We show that …-implied capital measure for policy makers. We propose an econometric model for the combined simulation of equity and CDS prices, which …

as equity divided by asset value) for each bank at the time of each loan's origination. After controlling for both bank …

period from 1990 to 2017, I find that equity investors adjust their expected return weakly in accordance with the Modigliani … estimated to increase by 10 to 40bps, representing a relative increase of 2.8% to 12.6%, when shifting equity from 8% to 16 …

This paper studies how bank capital changes following the implementation and removal of a tax incentive on equity. We … equity from a base year. Using a difference-in-differences setting, we observe an 8.83% increase in bank capital ratios … following the implementation of this reform. When this tax mechanism is phased out, we observe an opposite effect on the equity …

composition (equity vs. bail-in debt) is driven by the relative importance of two incentive problems: risk shifting (mitigated by … equity) and private benefit taking (mitigated by debt). Our quantitative results suggest that TLAC size in line with current …