I investigate how banks manage liquidity as specified in the German prudential liquidity regulation, which combines a stock and cash-flow mapping approach. To do so, I use dynamic panel data regressions, take into account that payment obligations are endogenous and test whether banks whose...

In this paper, we investigate how the withdrawal of banks from their cross-border business has impacted on firms' borrowing costs since the recent crisis. We combine aggregate information on total and cross-border credit with firm-level data from the Survey on the Access to Finance of SMEs in...

We isolate the direct bank-to-sovereign distress channel within the Eurozone's sovereignbank-loop by exploiting the global, non-Eurozone related variation in stock prices. We instrument banking sector stock returns in the Eurozone with exposure-weighted stock market returns from non-Eurozone...

In order to study the effect of sector-specific regulation on industry behavior and market outcome, regulatory density must be measured. The Polynomics Telecommunication Regulation Index 2012 aims to provide such a measure for telecommunications. It is based on coded answers to almost 30...

Entrepreneurial high-technology start-up firms usually need equity in order to finance their research, product development, and in particular growth opportunities due to new ideas and innovation. In an advanced stage they often require even larger financial resources and may raise equity by...

Credit constraints are more frequent among growth companies with large investment opportunities. For the same reason, profit taxes may harm innovative firms more than standard ones. This paper develops a model of heterogeneous firms where an endogenous share opts for innovation and faces credit...

Since innovative firms are often financially constrained, access to external funds is important for the expansion of innovative industries. This paper reports four important results. First, comparative advantage is shaped by factor endowments as well as fundamental determinants of corporate...

This article provides a theoretical framework to analyze the impact of banking regulation on the risk-taking behavior of banks by incorporatig the incentives of three risk-neutral agents - the welfaristic regulator, the shareholder and the manager. While shareholders are assumed to maximize the...