Standalone ratings measure a bank's intrinsic financial strength but – unlike all-in ratings – do not incorporate potential sovereign or parent-bank support. On July 20, 2011, Fitch switched from a 9-point to a 21-point scale for their standalone ratings but did not alter their all-in...

The global financial crisis triggered a political debate about bank bonuses and their impact on risk-taking. We investigate whether excessive levels of trading activity have adverse effects for bank shareholders, and the impact of variable compensation on outcomes. We find that excessive trading...

The Net Stable Funding Ratio (NSFR) is a new Basel III liquidity requirement designed to limit funding risk arising from maturity mismatches between bank assets and liabilities. This study explains the NSFR and estimates this ratio for banks in 15 countries. Banks below the ratio need to...

The widening of a foreign firm's U.S. investor base and the improved information environment associated with cross-listing on a U.S. exchange are distinct effects. Valuations of Canadian firms peak in the year of cross-listing and fall monotonically thereafter, irregardless of the level of U.S....

The equity of Canadian-listed firms trades at a discount to U.S.-listed firms. This discount may be due to weaker corporate governance in Canada relative to the United States. Canadian firms may mitigate this discount by cross listing on a U.S. stock exchange. Results show that Canadian firms...

The Bank of Canada is one of very few central banks that has made records of the intraday timing of its intervention operations available to researchers. This paper investigates the effectiveness of sterilized intervention in the Canadian dollar exchange rate market over the period January 1995...

This paper analyzes official, high-frequency Bank of Canada intervention and exchange rate data (the latter quoted at the end of every 5-minute interval over every 24-hour period) over the January 1995 to September 1998 time-period. The data is of particular interest as it spans over two...

The authors describe a new view of cross-listing that links the impact on firm valuation to the firm's ability to develop an active secondary market for its shares in the U.S. markets. Contrary to previous research, cross-listing may not provide benefits for all firms, even when those firms meet...

The authors examine how the valuation multiples assigned to the equity of Canadian-listed firms compare with the equity of comparable firms listed in the United States. They find that Canadian-listed firms trade at a discount to U.S.-listed firms across a range of valuation measures. Differences...

This paper examines the relation between the Canadian dollar / US dollar (CAD) exchange rate and foreign exchange order flow employing a novel data set on CAD order flow over the period 1994-2005. We investigate empirically the predictive information content and the determinants of order flow....