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We develop a dynamic model of banking to assess the effects of liquidity and leverage requirements on banks' insolvency … risk. In this model, banks face taxation, flotation costs of securities, and default costs and maximize shareholder value …
Persistent link: https://www.econbiz.de/10011293576
money center banks). The “intermediary depiction model” that the SEC has always used is inadequate in financial innovation …
Persistent link: https://www.econbiz.de/10013100915
Persistent link: https://www.econbiz.de/10013002918
We show that when borrowers are privately informed about their creditworthiness and lenders have a soft budget constraint, efficient investment requires a limit on the fraction of a firm’s cash flows that can be pledged to outsiders. That is, pledgeability should neither be too low nor too...
Persistent link: https://www.econbiz.de/10013240884
Firms' inability to commit to future funding choices has profound consequences for capital structure dynamics. With debt in place, shareholders pervasively resist leverage reductions no matter how much such reductions may enhance firm value. Shareholders would instead choose to increase leverage...
Persistent link: https://www.econbiz.de/10010205870
Public Sector Banks (“PSB firms”) to the new bankruptcy environment in terms of their borrowing decisions. Our results …
Persistent link: https://www.econbiz.de/10013301190
Individual financial systems can be understood as very specific configurations of certain key elements. Often these configurations remain unchanged for decades. We hypothesize that there is a specific relationship between key elements, namely that of complementarity. Thus, complementarity seems...
Persistent link: https://www.econbiz.de/10010316267
. We develop a repeated game in which banks come across each other frequently, allowing them to threaten a punishment in … case of free riding. As the number of lending banks grows, the chance of meeting again a bank and of being punished for … restructuring probability increases with the number of banks up to a threshold - three banks - beyond which coordination problems …
Persistent link: https://www.econbiz.de/10011962128
Eine große Herausforderung der multivariablen Analyse mit bilanziellen Kennzahlen besteht in der Identifikation derjenigen Kennzahlen, die zur besten Modellperformance führen und dabei möglichst leicht interpretierbar und intuitiv bleiben. Die Menge der in Frage kommenden Kennzahlen ist in...
Persistent link: https://www.econbiz.de/10010263704
Eine große Herausforderung der multivariablen Analyse mit bilanziellen Kennzahlen besteht in der Identifikation derjenigen Kennzahlen, die zur besten Modellperformance führen und dabei möglichst leicht interpretierbar und intuitiv bleiben. Die Menge der in Frage kommenden Kennzahlen ist in...
Persistent link: https://www.econbiz.de/10003635001