Showing 111 - 120 of 26,901
We provide causal evidence that adverse capital shocks to banks affect their borrowers' performance negatively. We use an exogenous shock to the U.S. banking system during the Russian crisis of Fall 1998 to separate the effect of borrowers' demand of credit from the supply of credit by the...
Persistent link: https://www.econbiz.de/10012708079
Segmented capital markets may allow firms to reduce their cost of capital by increasing their reliance on the relatively cheaper market. However, this potential benefit is attenuated by the firm's costs of accessing the markets. This paper models a firm with access to two segmented capital...
Persistent link: https://www.econbiz.de/10012710555
Risk transfers represent a preferred method for removing pension liabilities from corporate balance sheet. We examine the role of institutional shareholders on firm’s decision to offload pension liabilities to professional risk managers. We find that the likelihood of pension risk transfers is...
Persistent link: https://www.econbiz.de/10013222168
Central clearing counterparties (CCPs) have a variety of economic rationales. The Great Recession of 2007-2009 led regulators to mandate CCPs for most interest-rate and credit derivatives, markets in which large amounts of risks are transferred across agents. This change led to a large increase...
Persistent link: https://www.econbiz.de/10013232135
The initial coin offering (ICO) market relies on the “wisdom of crowds”, ratings given by the collective opinion of crypto experts, to overcome asymmetric information problems in the fundraising process. We investigate the biases of crypto experts in providing ratings in ICOs. We conjecture...
Persistent link: https://www.econbiz.de/10013234264
This paper examines whether high levels of financial inclusion is associated with greater financial risk. The findings reveal that higher account ownership is associated with greater financial risk through high nonperforming loan and high cost inefficiency in the financial sector of developed...
Persistent link: https://www.econbiz.de/10013239735
Social networks are thought to be important for the investment and performance of mutual fund managers. We propose a measure of whether a manager is part of a network using only data on the distribution of the number of stocks headquartered in a given city that are held by managers. For some...
Persistent link: https://www.econbiz.de/10013034449
This article studies the regulatory strategies to address the potential systemic risk of hedge funds operation in financial markets. Due to the implications of the choice of regulatory strategies and instruments in terms of mitigating systemic risk, the article focuses on one critical aspect of...
Persistent link: https://www.econbiz.de/10013035084
This paper analyzes the economics of the private equity fund compensation. We build a novel model to estimate the expected revenue to fund managers as a function of their investor contracts. In particular, we evaluate the present value of the fair-value test (FVT) carried interest scheme, which...
Persistent link: https://www.econbiz.de/10013037597