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We argue that a financial transaction tax complements financial market regulation. With the tax, governments have an additional instrument at hand to influence trading activity. FTT aims to reduce regulatory arbitrage, flash trading, overactive portfolio management, excessive leverage and...
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incentives to implement such a trigger? We construct a theoretical model of a bank that is financed with debt and equity, and a …. However, we show that the board may implement a contract with insufficient incentives to communicate a warning, as refinancing …
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) incentives before the crisis. We find some evidence that banks with CEOs whose incentives were better aligned with the interests …
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. -- Bonuses ; investment banks ; leverage ; financial crisis ; perverse incentives …
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