The aim of this paper is to analyse the influence of financial system liquidity and corporate leverage on a firm … traditional role as a managerial control mechanism. Instead, the supply of systemic liquidity results in corporate leverage …, our results show a significant and positive relationship between corporate leverage and overinvestment when the liquidity …

. Moreover, although they mitigate credit risk, CCPs create liquidity risks, because they rely on participants to provide cash …. Such requirements increase with both market volatility and default; consequently, CCP liquidity needs are inherently … financial institutions default. Liquidity-focused macroprudential stress tests could help to assess and manage this systemic …

on financial markets and the wider economy. They can, for example, bias the private provision of real liquidity and …