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We examine how banks affect firms' cash holdings by focusing on the soundness of banks in Japan, a bank-centered market … deterioration of bank soundness decreases bank-dependent firm investment and firm value. Cash holdings of bank-dependent firms … results, which are consistent with the financial constraint hypothesis and are inconsistent with the bank power hypothesis …
Persistent link: https://www.econbiz.de/10012968423
performance effects of financial distress and mitigates strategic complementarities. Parent bank flows during distress periods … financial institutions, and further highlight the potential benefits of bank-affiliation for fund investors …
Persistent link: https://www.econbiz.de/10012828417
Rising intangible assets on corporate balance sheets around the world could limit borrowing capacity and consequently hinder growth if firms must preserve cash and forgo investment opportunities. We show that financial development lowers the sensitivity of cash holdings to tangible assets and...
Persistent link: https://www.econbiz.de/10012935290
National Bank of Poland, reveal that both ratios gradually deteriorated throughout most of this period. The ratios stabilized … average Polish bank would withstand a run-off of no more than 20% retail deposits – while fifteen years earlier similar stress …
Persistent link: https://www.econbiz.de/10013045429
This paper deals with Russian financial markets and financial institutions in 2010. The author focuses on the Russian stock market, bond market. The author analyzes key risks in financial markets, ruble devaluation risks and repo transactions risks
Persistent link: https://www.econbiz.de/10013085767
In 2016, Russia's stock market, in terms of its rates of return, set a world record among all the other stock markets. Over that year, the RTS Index gained 52.3%, and the MICEX Index –26.8% (Fig. 1). The faster growth rate of the RTS Index, which reflects the price of shares in US dollar...
Persistent link: https://www.econbiz.de/10012952699
hypothesis using a bank holding company (BHC) level heterogeneity index based on granular balance-sheet, income statements, cash … flow statements, and off-balance-sheet information for the U.S. bank holding companies over a sample period spanning the …-2009) and the COVID-19 Recession, especially for the largest bank holding companies (BHCs). As such, a declining level of …
Persistent link: https://www.econbiz.de/10014355963
hypothesis using a bank holding company (BHC) level heterogeneity index based on granular balance-sheet, income statements, cash … flow statements, and off- balance-sheet information for the U.S. bank holding companies over a sample period spanning the …) and the COVID-19 Recession, especially for the largest bank holding companies (BHCs). As such, a declining level of …
Persistent link: https://www.econbiz.de/10014258573
Liquidity stress constitutes an ongoing threat to financial stability in the banking sector. A bank that manages its … construct probabilistic classifiers that estimate the probability that a bank faces liquidity stress. The classifiers are …
Persistent link: https://www.econbiz.de/10012867626
We propose a methodology for measuring the market-implied capital of banks by subtracting from the market value of equity (market capitalization) a credit-spread-based correction for the value of shareholders' default option. We show that without such a correction, the estimated impact of a...
Persistent link: https://www.econbiz.de/10013168743