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The historical development of bank liquidity doctrines is surveyed from the real bills doctrine and its antecedents to … the present day. The underlying ideas of the succession of several dominant liquidity doctrines are analysed and compared … doctrine is obsolete as such, its central idea that the liquidity of banks requires their credit to be linked to real income …
Persistent link: https://www.econbiz.de/10014523004
unanticipated insolvency of one bank. Banks that cannot rule out an indirect hit react by selling assets and hoarding liquidity …. While this potentially lowers illiquidity risks, it depresses market liquidity and prices. This leads to a negative … externality by which sales to acquire liquidity simultaneously lead to lower global sale proceeds and thus to a greater number of …
Persistent link: https://www.econbiz.de/10014523045
The article deals with the liquidity risk in the banks in the context of the financial crisis. At first, the balance … sheet and market liquidity are defined and the main principles of the methods for measuring liquidity risk, which banks use …, are identified. Then follow review of main challenges of managing the liquidity of banks. Finally, it discusses …
Persistent link: https://www.econbiz.de/10010512899
locations, liquidity is found to be related to performance, adding support to the popular belief that it is (perhaps one of) the … factor(s) missing from conventional tests of asset pricing. The results suggest that a lack of liquidity, rather than size … attach much currency to proposals to subsidize small firms by enhancing the liquidity of their shares; the results reported …
Persistent link: https://www.econbiz.de/10011310288
This paper examines the impact of option listing in the NASDAQ equity market on the bid-ask spread of the underlying stock. We find that both the market adjusted percentage and dollar spreads decrease with option listing, which is consistent with a value enhancing impact of derivative security...
Persistent link: https://www.econbiz.de/10011310309
& Efficiency, Leverage, and Liquidity ratios were used to measure the financial performance, where pre and post ratio analysis was …
Persistent link: https://www.econbiz.de/10011656428
estimates in markets more contaminated from microstructure noise such as higher bid-ask spreads and lower liquidity. We address …
Persistent link: https://www.econbiz.de/10011858494
Persistent link: https://www.econbiz.de/10011922789
The paper deals with relationship between liquidity and profitability ratios in the Czech Republic to investigate … whether there exists correlation (a) within selected liquidity ratios and (b) selected liquidity ratios and selected … within selected liquidity ratios is fairly strong while correlation between selected liquidity ratios and selected …
Persistent link: https://www.econbiz.de/10011937450
factors. In this regard, liquidity is hypothesized to moderate the relationship between debt and financial performance and … this study will simultaneously estimate the optimal liquidity level that could optimize the financial performance of REITs …; Perron, 2006) to analyze the moderating effects of liquidity and the optimal liquidity level on the debt …
Persistent link: https://www.econbiz.de/10014544644