The European Central Bank (ECB) increased the emergency liquidity assistance (ELA) for Greek banks from €50 billion in …

provided liquidity against a range of assets during 2008-09. Dealers with lower equity returns and greater leverage prior to … liquidity in explaining dealer behavior. The results suggest that both financial performance and balance sheet liquidity play a …

long time. -- liquidity trap ; financial crisis ; rare disasters ; equity capital ; leverage ; bankruptcy risk …This paper explains the emergence of liquidity traps in the aftermath of large-scale financial crises, as happened in … equity capital to the risk-free interest rate. When equity capital falls, bankruptcy risks rise. Firms become more vulnerable …

We construct a theoretical framework to investigate the impact of liquidity risk, in the secondary corporate debt … fundamentals. Empirically, we confirm the positive relationship between liquidity risk and corporate risk-taking. We also document … that the impact of liquidity risk on corporate risk-taking preferences is more pronounced for smaller firms and firms with …