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Institutions and Structural Unemployment : Do Capital-Market Imperfections Matter?

Belke, Ansgar Hubertus; Fehn, Rainer - 2021

This paper analyzes whether differences in institutional structures on capital markets contribute to explaining why some OECD-countries, in particular the Anglo-Saxon countries, have been much more successful over the last two decades in producing employment growth and in reducing unemployment...

Persistent link: https://www.econbiz.de/10013320887

Identifying financial constraints

Cherchye, Laurens; Rock, Bram de; Ferrando, Annalisa; … - 2020

We propose a new methodology to recover firm-time varying financial constraints from firms' production behavior. We model financial constraints as the profitability that firms forgo when budget constraints on production inputs bind, impeding them from using the optimal level of inputs and...

Persistent link: https://www.econbiz.de/10012241106

Inflation risk and the finance-growth nexus

Corhay, Alexandre; Tong, Jincheng - 2021

inflation lead to a wealth transfer across sectors. Higher inflation decreases firms' real liabilities and default risk, which …

Persistent link: https://www.econbiz.de/10012595351

Raising Bond Capital in Segmented Markets

Siani, Kerry - 2022

The difference between corporate bond yields at issuance and in secondary markets, the "issuance premium", spikes in bad times, increasing firms' costs of capital. Leveraging new bond-level data, I estimate a model of primary markets with imperfectly elastic investors and endogenous firms'...

Persistent link: https://www.econbiz.de/10014236586

The Equity Premium With Undiversified Investors and Financial Frictions

Elenev, Vadim; Landvoigt, Tim - 2022

higher risk free rates, lower risk premiums on both fully diversified and concentrated assets, and lower output, consumption …, and investment. Household wealth would be 9% lower, yet welfare would be 3.1% higher due to lower risk. Time …-varying exposure to undiversified firm risk that loads on rare disasters can explain approximately 25% of the level and 20% of the …

Persistent link: https://www.econbiz.de/10014236608

South Africa : The Financial Sector-Sovereign Nexus

Hesse, Heiko; Miyajima, Ken - 2022

Globally, financial institutions have increased their holdings of domestic sovereign debt, tightening the linkage between the health of the financial system and the level of sovereign debt, or the “financial sector-sovereign nexus,” during the ongoing COVID-19 pandemic. In South Africa, the...

Persistent link: https://www.econbiz.de/10013294996

Financial Integration through Production Networks

Chakraborty, Indraneel; Chityala, Saketh; Javadekar, Apoorva - 2022

This paper studies how interconnected plants distribute additional liquidity from banks through the supply chain. Using a spatially segmented bank branch expansion rule in India, we find that direct exposure to additional bank credit allows plants to hold less precautionary cash and increase...

Persistent link: https://www.econbiz.de/10013404479

Firm equity risk, bank lending standards, and the macroeconomy

Nguyen, Hien - In: Cogent economics & finance 10 (2022) 1, pp. 1-24

This paper analyzes the impact of US firms’ equity risk on bank lending standards and on the macroeconomy for two … groups: small and medium-large firms. The results indicate that a higher level of firm risk leads to a higher percentage of …-large firms. The finding provides support for the Risk Management Hypothesis, under which banks decrease lending to risky …

Persistent link: https://www.econbiz.de/10013462030

A 'Silent Spring' for the Financial System? Exploring Biodiversity-Related Financial Risks in France

Svartzman, Romain; Espagne, Etienne; Julien, Gauthey; … - 2022

This paper contributes to an emerging literature aimed at uncovering the linkages between biodiversity loss and financial instability, by exploring biodiversity-related financial risks (BRFR) in France. We first build on previous studies and propose an analytical framework to understand BRFR,...

Persistent link: https://www.econbiz.de/10013306416

Time variation in asset price response to macro announcements

Goldberg, Linda S.; Grisse, Christian - 2013

the level of policy rates at the time of the news release, and risk conditions: Government bond yields increase in … response to good news, but less so when risk is elevated. Risk conditions matter since they can capture the effects of … objectives of central banks, and the effect of news announcements on the risk premium. …

Persistent link: https://www.econbiz.de/10010333621