I test the market discipline of bank risk hypothesis by examining whether banks choose risk management policies that account for the risk preferences of subordinated debt holders. Using around 500,000 quarterly observations on the population of U.S. insured commercial banks over the 1995–2009...

In this paper, we examine whether the extent to which the labor force is legally protected impacts the choice of whether to privatize SOEs through share issues in the public stock exchange or through asset sales to a small group of investors. Based on a sample of 3,983 privatizations, which...

We examine the impact of political risk in the MENA region on the cost at which firms can raise capital. Using the implied cost of equity as a measure of the cost of capital and ICRG's political risk rating as a proxy for political risk, we find that political risk results in a higher cost of...

Using a sample of publicly traded banks from 56 countries over the 2000-2017 period, we examine the impact of government ownership on banks’ cost of equity. We find that banks with a larger share of government ownership suffer a higher cost of equity. Our empirical analyses also suggest that...

This paper studies the transmission of macroprudential policies across both financial and non financial sectors of the economy. It first documents that tighter macroprudential regulations implemented in Europe over the period 2008–2017 lowered default risk not only in the financial, but also...

This paper investigates macroprudential policy effects on bank systemic risk and the role of inflation targeting in such effects. Using bank-level data for 45 countries comprising various monetary and exchange rate regimes, our regime-dependent dynamic panel regression results point to...