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Small and medium-sized enterprises are a centrepiece of Europe's economy. Due to their limited size and their generally lower creditworthiness, their access to financial market instruments is more limited than for large enterprises, which benefit from more elaborate Treasury operations,...
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In August 2007 the United Kingdom experienced its first bank run in over 140 years. Although Northern Rock was not a particularly large bank (it was at the time ranked 7th in terms of assets) it was nevertheless a significant retail bank and a substantial mortgage lender. In fact, ten years...
Persistent link: https://www.econbiz.de/10011705347
’s ordinal grading by a purely quantitative CAMEL covariate vector, which is standard in many bank rating models, and we also … the importance of bank-individual on-site risk assessments. -- Bank rating ; banking supervision ; generalized ordered …
Persistent link: https://www.econbiz.de/10009160856
The intensity of the crisis in financial markets has surprised nearly everyone. This paper searches out the root causes of the crisis, distinguishing them from scapegoating explanations that have been used in policy circles to divert attention from the underlying breakdown of incentives....
Persistent link: https://www.econbiz.de/10013158630
Interconnectedness between economic institution and sectors, already recognised as a trigger of the great financial crisis in 2008-2009, is assuming growing importance in financial systems. In this paper we study contagion effects between corporate sectors using financial network models, in...
Persistent link: https://www.econbiz.de/10012839989
This paper studies how access to bank lending differed between family and non-family firms in the 2007-2009 financial crisis. The theoretical prediction is that family block-holders' incentive structure results in lower agency conflict in the borrower-lender relationship. Using highly detailed...
Persistent link: https://www.econbiz.de/10013008020
looking and risk based. However, it notes that major credit rating agencies continue to maintain relatively low ratings for …
Persistent link: https://www.econbiz.de/10011282133
between credit rating companies (i.e., Moody's and Standard and Poor's) over new issued bonds to measure the difficulty in … evaluating firms' risks. In this paper, we follow Morgan (2002) and investigate whether credit rating companies likely agreed on … disagreements among credit rating companies, this fact suggests that the current disclosure is not enough for outsiders to evaluate …
Persistent link: https://www.econbiz.de/10003321259