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Do financial constraints hold back innovation and growth? Evidence on the role of public policy

Hyytinen, Ari; Toivanen, Otto - 2003

This paper provides evidence that capital market imperfections hold back innovation and growth, and that public policy can complement capital markets. We deliver the evidence by studying the effects of government funding on the behavior of SMEs in Finland. By adapting the methodology recently...

Persistent link: https://www.econbiz.de/10010285181

Law or finance: Evidence from Finland

Hyytinen, Ari; Kuosa, Iikka; Takalo, Tuomas - 2001

Although it is widely acknowledged that the benefits of corporate governance reform could be substantial, systematic evidence on such reforms is scant. We both document and evaluate a contemporary corporate governance reform by constructing 18 measures of shareholder and creditor protection for...

Persistent link: https://www.econbiz.de/10010285197

Risk-return efficiency, financial distress risk, and bank financial strength ratings

Hua, Changchun; Liu, Li-gang - 2010

This paper investigates whether there is any consistency between banks' financial strength ratings (bank rating) and … higher efficiency score on average tend to obtain favorable ratings. It appears that rating agencies generally encourage …

Persistent link: https://www.econbiz.de/10010286128

Liquidity hoarding

Gale, Douglas; Yorulmazer, Tanja - 2011

Banks hold liquid and illiquid assets. An illiquid bank that receives a liquidity shock sells assets to liquid banks in exchange for cash. We characterize the constrained efficient allocation as the solution to a planner's problem and show that the market equilibrium is constrained inefficient,...

Persistent link: https://www.econbiz.de/10010287074

Role of the Credit Risk Database in developing SMEs in Japan: Lessons for the rest of Asia

Kuwahara, Satoshi; Yoshino, Naoyuki; Sagara, Megumi; … - 2015

Small and medium-sized enterprises (SMEs) play a significant role in Asian economies as they contribute to high shares of employment and output. However, SMEs generally have limited access to finance compared to large enterprises. Given the bank-dominated financial systems in Asia, banks are the...

Persistent link: https://www.econbiz.de/10011526669

Optimal Securitization with Heterogeneous Investors

Malamud, Semyon; Rui, Huaxia; Whinston, Andrew B. - Swiss National Centre of Competence in Research North … - 2010

We solve the problem of optimal securitization for an issuer facing heterogeneous investorswith arbitrary time and risk preferences. We show that the optimal securitizationis characterized by multiple nonlinear tranches, and each investor gets a portfolio of thesetranches. In particular, when...

Persistent link: https://www.econbiz.de/10009305109

Structure and determinants of financial covenants in leveraged buyouts - evidence from an economy with strong creditor rights

Achleitner, Ann-Kristin; Braun, Reiner; Tappeiner, Florian - 2009

We apply control rights theory to explain the structure and determinants of financial covenants in private equity backed leveraged buyouts. We analyze 130 German transactions from 2000 to 2008, covering about 40 percent of the LBO market during this period. We consider Germany to be a superior...

Persistent link: https://www.econbiz.de/10003919605

Rating model for estimating the probability of default in LBO transactions

Lang, Michael; Cremers, Heinz; Hentze, Rainald - 2010

risk cannot be quantified with com-mon rating methods. This paper explains the risk associated with leveraged buyout (LBO …) transactions and demon-strates the implementation of a new rating method based on a logistic regression (logit func-tion), a rating … and non-defaulting LBO transactions. -- Logistic Regression ; Logit ; Credit Risk ; Credit Risk Modeling ; Rating …

Persistent link: https://www.econbiz.de/10003939552

Optimal securitization with heterogeneous investors

Malamud, Semyon; Rui, Huaxia; Whinston, Andrew B. - 2010

efficiently calculated through a fixed point of a contraction mapping, and we develop new powerful techniques that are generally … applicable for numerical calculation of constrained Pareto-efficient allocations. We use these contraction mapping techniques to …

Persistent link: https://www.econbiz.de/10003979499

Optimal incentives and securitization of defaultable assets

Malamud, Semyon; Rui, Huaxia; Whinston, Andrew B. - 2011

We study optimal securitization of defaultable assets in a continuous time setting. A financial intermediary can create a portfolio of defaultable assets and then sell it to outside investors. The default risk of the assets in the portfolio is determined by the unobservable costly effort exerted...

Persistent link: https://www.econbiz.de/10009375121