This article explains the roots of financial crises in one of the oldest and most fundamental problems of commercial law: hidden leverage. Common law courts wrestled with this problem for centuries and developed a time – tested solution: the doctrine of secret liens. If the debtor becomes...

This study engages in a detailed analysis of interconnectedness (i.e., the linkage between financial institutions) in the context of the failure of Lehman Brothers in October 2008 and concludes that interconnectedness was not a major cause of the recent financial crisis.The study continues with...

Estimates of investor expectations of government support of large financial firms are often based on large financial firms' lower borrowing costs relative to smaller financial firms. Using pricing data on credit default swaps (CDS) and corporate bonds over the period 2004 to 2013, however, we...

The objective of this article is to highlight some of the key changes because of the transition from IFRS 4 to IFRS 17 and how the financial information presented by the insurance companies will transform from 1 January 2023

Credit Rating Agencies (CRAs), an important financial intermediary acts as a gatekeeper to the financial markets by influencing the investor and regulating the issuer’s access to the financial markets. In India, Securities and Exchange board of India (SEBI) brought rating agencies under its...

Credit Rating Agencies (CRAs) acts an important financial intermediary and gatekeeper. They work with regulators in framing policies and laws for regulating the market. They are mentioned in many statutory regulations of SEBI, IRDA, RBI, NSIC etc. There are seven registered credit rating...

Nonbank lenders have been playing an increasingly important role in the supply of debt financing, especially post Great Recession. These nonbank financial institutions not only participate in syndicated loans to large businesses but also act as direct lenders to small and mid-sized businesses,...

This paper identifies three main factors explaining the longevity of the Glass-Steagall Act: institutional, technological, and political economy factors. Loopholes of the law, i.e. institutional factors, weakened the effectiveness of GSA early on, diminishing the need for reform. As technology...

We discuss the literature on the shift from stakeholder to shareholder finance behind the Great Financial Crisis (GFC). Traditional banks generally maximized stakeholder value (STV). But before the GFC also many of them started maximizing shareholder value (SHV). Moving from STV to SHV often...

This paper provides evidence on how the new international regulation on Global Systemically Important Banks (G-SIBs) impacts the market value of large banks. We analyze the stock price reactions for the 300 largest banks from 52 countries across 12 relevant regulatory announcement and...