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Moral Hazard, Firm Age, and Slow Recovery with Uncertainty Shocks

Mitra, Indrajit - 2019

increase in uncertainty about firm-productivity intensifies the moral hazard problem and implies a decline in the entry of new … shocks result in a financial crisis with a slow recovery. In contrast, recovery from a decline in mean productivity is fast …

Persistent link: https://www.econbiz.de/10012901584

Aggregate investment externalities and macroprudential regulation

Gersbach, Hans; Rochet, Jean-Charles - 2012

explanation for this phenomenon. We show that, instead of dampening productivity shocks, the banking sector tends to exacerbate …

Persistent link: https://www.econbiz.de/10009558435

Resilience and Cyclicality in Private Equity : Value Creation and Investment Flows in Economic Cycles

Juergens, Alexander; Braun, Reiner - 2022

This study investigates the effects of economic cycles on abnormal value creation of buyouts (BO) and on the investment activity of the corresponding Private Equity (PE) funds. We benchmark a large sample of BO transactions with closely matched public companies from 1986 to 2017. Our results...

Persistent link: https://www.econbiz.de/10014236434

Financial intermediaries and the macroeconomy : evidence from a high-frequency identification

Ottonello, Pablo; Song, Wenting - 2022 - Last updated: May 20, 2022

We provide empirical evidence of the causal effects of changes in financial intermediaries' net worth on the aggregate economy. Our strategy identifies financial shocks as high-frequency changes in the market value of intermediaries' net worth in a narrow window around their earnings...

Persistent link: https://www.econbiz.de/10013252981

How bank capital structure decision-making change in recessions : Covid-19 evidence from Pakistan

Khalil Ullah Mohammad - In: Asian journal of economics and banking : AJEB 6 (2022) 2, pp. 255-269

Purpose - This study contributes to existing literature by investigating bank capital structure dynamics during the Covid-19 pandemic. The role of contemporary bank-specific determinants of capital structure during this period is analyzed. Design/methodology/approach - An independent t-test is...

Persistent link: https://www.econbiz.de/10013352754

Benign neglect of covenant violations : blissful banking or ignorant monitoring?

Colonnello, Stefano; Koetter, Michael; Stieglitz, Moritz - 2019

Theoretically, bank's loan monitoring activity hinges critically on its capitalisation. To proxy for monitoring intensity, we use changes in borrowers' investment following loan covenant violations, when creditors can intervene in the governance of the firm. Exploiting granular bank-firm...

Persistent link: https://www.econbiz.de/10011960127

When losses turn into loans : the cost of undercapitalized banks

Blattner, Laura; Farinha, Luísa A.; Rebelo, Francisco - 2019

We provide evidence that a weak banking sector has contributed to low productivity growth following the European … natural experiment to study the effects of reduced bank capital adequacy on productivity. Affected banks respond not only by … the resulting increase in factor misallocation accounts for 20% of the decline in productivity in Portugal in 2012. …

Persistent link: https://www.econbiz.de/10011975387

Stochastic Mortality, Macroeconomic Risks, and Life Insurer Solvency

Hanewald, Katja - 2019

Motivated by a recent demographic study establishing a link between macroeconomic fluctuations and the mortality index kt in the Lee-Carter model, we develop a dynamic asset-liability model to assess the impact of macroeconomic fluctuations on the solvency of a life insurance company....

Persistent link: https://www.econbiz.de/10012906039

Risk Management with Variable Capital Utilization and Procyclical Collateral Capacity

Chen, Guojun; Lu, Zhongjin; Vij, Siddharth - 2021

profitability, whereas utilization is negatively correlated with liquidity. These results support the key predictions of our theory …

Persistent link: https://www.econbiz.de/10013237780

Stochastic mortality, macroeconomic risks, and life insurer solvency

Hanewald, Katja; Post, Thomas; Gründl, Helmut - 2009

Motivated by a recent demographic study establishing a link between macroeconomic fluctuations and the mortality index kt in the Lee-Carter model, we assess the impact of macroeconomic fluctuations on the solvency of a life insurance company. Liabilities in our stochastic simulation framework...

Persistent link: https://www.econbiz.de/10003814526