imperfectly elastic supply of bank equity stemming from financial market segmentation. In our model, equity is costly and serves … and the design of bank stress testing. …

empirical support. We conclude that bank equity is not socially expensive, and that high leverage at the levels allowed, for …

We build a model of investment and financing decisions to study the choice between bonds and bank loans in a firm …

regulatory requirements. Our analytic characterization of the bank policy choices shows that imposing solely liquidity … requirements leads to lower bank losses in default at the cost of an increased likelihood of default. Combining liquidity … requirements with leverage requirements reduces drastically both the likelihood of default and the magnitude of bank losses in …

Is bank- versus market-based financing different in its attitudes towards Environmental, Social, and Governance (ESG … bank monitoring and scrutiny. The Social and Governance components, in particular, matter. Furthermore, firms suffering … higher numbers of negative ESG reputation shocks are less likely to continue to rely on bank credit in response to lenders …

Is bank- versus market-based financing different in its attitudes towards Environmental, Social, and Governance (ESG … bank monitoring and scrutiny. The Social and Governance components, in particular, matter. Furthermore, firms suffering … higher numbers of negative ESG reputation shocks are less likely to continue to rely on bank credit in response to lenders …

promoting bank safety and soundness. The Bank for International Settlements contends that market discipline imposes strong … potential losses from their risk exposures. Using 2007 and 2013 data on top-tier, publicly traded U.S. bank holding companies …

balance the benefits of the provision of liquidity services by bank deposits with the costs of bankruptcy. The risk in the …