In this paper we focus on fair value measurements in the Financial Crisis and its (continuing) aftermath. We consider different ways of measuring fair value; and we use the experience of economies under stress, and where markets deviate significantly from textbook models of symmetric information...

This paper studies the impact of credit rating agency (CRA) downgrade announcements on the value of the Euro and the yields of French, Italian, German and Spanish long-term sovereign bonds during the culmination of the Eurozone debt crisis in 2011-2012. The employed GARCH models show that CRA...

English Abstract: Following the collapse of Lehman Brothers, local lending to French firms by foreign banks experienced a noticeable decline. We use the methodology proposed by Gan (2007) and Khwaja and Mian (2008) to control for borrower heterogeneity and identify the existence of a loan supply...

This paper investigates whether banks were able to create value for their shareholders after the Global Financial Crisis (GFC) and whether operational efficiency is related to shareholder value creation in informationally efficient stock markets. The impact of GFC on bank efficiency and...

The admission by the Greek government on October 18, 2009, of large-scale accounting fraud in its national accounts sparked an unprecedented sovereign debt crisis that rapidly spread to the Euro-Zone's weakest member states. As the crisis increasingly drove a wedge between a seemingly resilient...

The government support of financial firms through direct assistance and programs to improve market liquidity during the worldwide financial crisis of 2007-2008 is unprecedented since the Great Depression. Whether a given firm is ex-ante ‘Too Big To Fail' in the mind of government agents is not...

We study the implications of information technology (IT) in banking for financial stability, using data on US banks' IT equipment and the tech-background of their executives. We find that one standard deviation higher pre-crisis IT adoption led to 10% fewer non-performing loans during the global...

Motivated by the world-wide surge of FinTech lending, we analyze the implications of lenders' information technology adoption for financial stability. We estimate bank-level intensity of IT adoption before the global financial crisis using a novel dataset that provides information on hardware...

New business creation declined an unprecedented amount during the Great Recession. I argue that financial constraints led to a contraction in young, small firms, which contributed greatly to the slow recovery. Using confidential firm-level data of the universe of firms and a...

Can the macroeconomic effects of credit supply shocks be large even when a small share of firms are credit-constrained? I use U.K. firm-level accounting data to discipline a heterogeneous-firm model in which the interaction between real and financial frictions induces precautionary cash...