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their liquidity buffers from 1976 to the 2008 crisis. Diversified banks also hold more illiquid small business loans, less … liquid mortgages, and have higher net liquidity creation. During the crisis, however, better diversified banks hoard more … liquidity. These results suggest that diversification increases liquidity risk-taking capacity in normal times, and that …
Persistent link: https://www.econbiz.de/10012941569
In the present paper through an empirical analysis author will estimate some important determinant factors of banking solvency apart from the risk. Our sample refers to the western economies including the United States. The econometric analysis based on a single equation model uses OECD panel...
Persistent link: https://www.econbiz.de/10013128168
This paper analyzes the effect of the business cycle on the regulatory capital buffer of German savings and cooperative banks in the period 1993-2003. The capital buffer is found to fluctuate anticyclically over the business cycle. The fluctuation is stronger for savings banks than for...
Persistent link: https://www.econbiz.de/10012989323
This study examines the speed of adjustment of the leverage and regulatory capital ratios between 2002 and 2018 for large commercial banks of the USA. The study applies a two-step system GMM technique to obtain the speed of adjustment. The results prove that higher-quality capital requires...
Persistent link: https://www.econbiz.de/10012655130
This article presents a financial scoring model estimated on Czech corporate accounting data. Seven financial indicators capable of explaining business failure at a 1-year prediction horizon are identified. Using the model estimated in this way, an aggregate indicator of the creditworthiness of...
Persistent link: https://www.econbiz.de/10003755238
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The purpose of the article is to analyse the impact of various financial ratios used to evaluate a company’s liquidity … developing countries, the relationship between liquidity and solvency on the one hand and the return on equity on the other is … of the capital asset pricing model (CAPM) model and analysed portfolios based on three liquidity ratios and four solvency …
Persistent link: https://www.econbiz.de/10012303197
influence the liquidity of Greek listed firms. It also explores the main factors that drive the level of operating cash flow … (OCF). By simulating a decrease of 50% and 75% in sales, we perform stress-tests on three liquidity ratios for 154 listed … about one year, whereas about 12% would become illiquid within two years. It is also observed that liquidity does not …
Persistent link: https://www.econbiz.de/10014330652