Search Results
Journal Article
Bank corporate governance: a proposal for the post-crisis world
Macey, Jonathan R.; O'Hara, Maureen
(2016-08)
The corporate governance problems of banks are qualitatively and quantitatively different from those of other firms. The authors argue that a key factor contributing to this difference is the growing opacity and complexity of bank activities, a trend that has increased the difficulty of managing risk in financial firms. They also cite the governance challenges posed by the holding company organization of banks, in which two boards of directors?the bank?s own board and the board of the holding company that owns the bank?monitor the bank. This paradigm results in significant confusion about the ...
Economic Policy Review
, Issue Aug
, Pages 85-105
Report
Financial frictions, real estate collateral, and small firm activity in Europe
Blickle, Kristian S.; Banerjee, Ryan N.
(2018-10-01)
We observe significant heterogeneity in the correlation between changes in house prices and the growth of small firms across certain countries in Europe. We find that, overall, the correlation is far greater in Southern Europe than in Northern Europe. Using a simple model, we show that this heterogeneity may relate to financial frictions in a country. We confirm the model?s propositions in a number of empirical analyses for the following countries in Northern and Southern Europe: the United Kingdom, Norway, France, Italy, Spain, and Portugal. Small firms in countries with higher financial ...
Staff Reports
, Paper 868
Working Paper
Private and Public Liquidity Provision in Over-the-Counter Markets
Arseneau, David M.; Vardoulakis, Alexandros; Rappoport, David
(2017-03-29)
We show that trade frictions in OTC markets result in inefficient private liquidity provision. We develop a dynamic model of market-based financial intermediation with a two-way interaction between primary credit markets and secondary OTC markets. Private allocations are generically inefficient because investors and firms fail to internalize how their actions affect liquidity in secondary markets. This inefficiency can lead to liquidity that is suboptimally low or high compared to the second best. Our analysis provides a rationale for the regulation and public provision of liquidity and the ...
Finance and Economics Discussion Series
, Paper 2017-033
Report
Financial visibility and the decision to go private
Mehran, Hamid; Peristiani, Stavros
(2009-06-01)
A large fraction of the companies that went private between 1990 and 2007 were fairly young public firms, often with the same management team making the crucial restructuring decisions both at the time of the initial public offering (IPO) and the buyout. Why did these public firms decide to revert to private ownership? To answer this question, we investigate the determinants of the decision to go private over a firm's entire public life cycle. Our evidence reveals that firms with declining growth in analyst coverage, falling institutional ownership, and low stock turnover were more likely to ...
Staff Reports
, Paper 376
Working Paper
Reorganization or Liquidation: Bankruptcy Choice and Firm Dynamics
Corbae, Dean; D'Erasmo, Pablo
(2020-07-28)
In this paper, we ask how bankruptcy law affects the financial decisions of corporations and its implications for firm dynamics. According to current U.S. law, firms have two bankruptcy options: Chapter 7 liquidation and Chapter 11 reorganization. Using Compustat data, we first document capital structure and investment decisions of non-bankrupt, Chapter 11, and Chapter 7 firms. Using those data moments, we then estimate parameters of a general equilibrium firm dynamics model with endogenous entry and exit to include both bankruptcy options. Finally, we evaluate a bankruptcy policy change ...
Working Papers
, Paper 769
Working Paper
Incentive Contracting Under Ambiguity Aversion
Liu, Qi; Sun, Bo; Lu, Lei
(2017-02)
This paper studies a principal-agent model in which the information on future firm performance is ambiguous and the agent is averse to ambiguity. We show that if firm risk is ambiguous, while stocks always induce the agent to perceive a high risk, options can induce him to perceive a low risk. As a result, options can be less costly in incentivizing the agent than stocks in the presence of ambiguity. In addition, we show that providing the agent with more incentives would induce the agent to perceive a higher risk, and there is a discontinuous jump in the compensation cost as incentives ...
International Finance Discussion Papers
, Paper 1195
Working Paper
Do Costly Internal Equity Injections Reveal Bank Expectations about Post-Crisis Real Outcomes?
Gupta, Arun; Sapriza, Horacio
(2022-12-21)
We construct a novel signal of bank expectations utilizing confidential data and a regulatory constraint imposed on bank internal capital markets during the 2008 crisis that made internal equity injections to commercial bank subsidiaries difficult to reverse. When the US government initiated a $176 billion recapitalization program during the crisis, this constraint made it costly ex-ante for multi-bank holding companies (MBHC) to use these funds for the purpose of recapitalizing subsidiaries against future anticipated losses; in contrast, lending the funds to subsidiaries was exempt from the ...
Working Paper
, Paper 23-03
Working Paper
Net Income Measurement, Investor Inattention, and Firm Decisions
Amornsiripanitch, Natee; Huang, Zeqiong; Kwon, David; Lin, Jinjie
(2022-02-14)
When investors have limited attention, does the way in which net income is measured matter for firm value and firms’ resource allocation decisions? This paper uses the Accounting Standards Update (ASU) 2016-01, which requires public firms to incorporate changes in unrealized gains and losses (UGL) on equity securities into net income, to answer this question. We build a model with risk-averse investors who can be attentive or inattentive and managers who choose how much to invest in financial assets to maximize firms’ stock prices. The model predicts that, with inattentive investors, ...
Working Papers
, Paper 22-05
FILTER BY year
FILTER BY Bank
Board of Governors of the Federal Reserve System (U.S.) 32 items
Federal Reserve Bank of New York 9 items
Federal Reserve Bank of Dallas 3 items
Federal Reserve Bank of Boston 2 items
Federal Reserve Bank of Minneapolis 2 items
Federal Reserve Bank of Philadelphia 2 items
Federal Reserve Bank of Richmond 2 items
Federal Reserve Bank of St. Louis 2 items
Federal Reserve Bank of Chicago 1 items
Federal Reserve Bank of San Francisco 1 items
show more (5)
show less
FILTER BY Series
Finance and Economics Discussion Series 25 items
International Finance Discussion Papers 7 items
Working Papers 7 items
Staff Reports 5 items
Economic Policy Review 4 items
Current Policy Perspectives 2 items
Working Paper 2 items
Working Paper Series 2 items
Globalization Institute Working Papers 1 items
Review 1 items
show more (5)
show less
FILTER BY Content Type
FILTER BY Author
Haque, Sharjil M. 10 items
Kleymenova, Anya V. 8 items
Lee, Seung Jung 3 items
Stebunovs, Viktors 3 items
Sun, Bo 3 items
Yang, Jie 3 items
Arseneau, David M. 2 items
Blickle, Kristian S. 2 items
Borochin, Paul 2 items
Bruche, Max 2 items
Haltenhof, Samuel 2 items
Liu, Qi 2 items
Mehran, Hamid 2 items
Meisenzahl, Ralf R. 2 items
Vardoulakis, Alexandros 2 items
Wang, Teng 2 items
Abadi, Joseph 1 items
Albertus, James F. 1 items
Amornsiripanitch, Natee 1 items
Armstrong, Christopher S. 1 items
Banerjee, Ryan N. 1 items
Boyarchenko, Nina 1 items
Brunnermeier, Markus K. 1 items
Bruno, Valentina 1 items
Bräuning, Falk 1 items
Cho, DuckKi 1 items
Chodorow-Reich, Gabriel 1 items
Choi, Lyungmae 1 items
Chudik, Alexander 1 items
Corbae, Dean 1 items
Crouzet, Nicolas 1 items
D'Erasmo, Pablo 1 items
Darmouni, Olivier M. 1 items
Dathan, Michele H. 1 items
Elias, Leonardo 1 items
Fillat, José 1 items
Fleckenstein, Quirin 1 items
Guay, Wayne R. 1 items
Gupta, Arun 1 items
Hillenbrand, Sebastian 1 items
Huang, Zeqiong 1 items
Iannotta, Giuliano 1 items
Ivanov, Ivan T. 1 items
Izumi, Ryuichiro 1 items
Jarque, Arantxa 1 items
Joaquim, Gustavo 1 items
Kho, Bong-Chan 1 items
Kitsul, Yuriy 1 items
Kotidis, Antonis 1 items
Kozlowski, Julian 1 items
Kwan, Simon H. 1 items
Kwon, David 1 items
Lin, Jinjie 1 items
Lin, Tse-chun 1 items
Lo, Andrew W. 1 items
Lu, Lei 1 items
Luck, Stephan 1 items
Macey, Jonathan R. 1 items
Malherbe, Frederic 1 items
Manuelli, Rodolfo E. 1 items
Mayer, Simon 1 items
Mehrotra, Neil 1 items
O'Hara, Maureen 1 items
Ortiz, Julio L. 1 items
Ozdagli, Ali 1 items
Pankratz, Nora 1 items
Peristiani, Stavros 1 items
Pesaran, M. Hashem 1 items
Plosser, Matthew 1 items
Rappoport, David 1 items
Rappoport, David E. 1 items
Santos, Joao A. C. 1 items
Sapriza, Horacio 1 items
Saunders, Anthony 1 items
Schiller, Christoph M. 1 items
Shen, Leslie Sheng 1 items
Smith, Ron P. 1 items
Smolyansky, Michael 1 items
Sommer, Joseph H. 1 items
Soto, Paul E. 1 items
Stulz, Rene M. 1 items
Tam, Xuan S. 1 items
Vo, Thu 1 items
Wang, Jessie Jiaxu 1 items
Wang, Jianlin 1 items
Warnock, Francis E. 1 items
Weber, Joseph P. 1 items
Williamson, Rohan 1 items
Xu, David Xiaoyu 1 items
Young, Eric R. 1 items
van Straelen, Eileen 1 items
von Beschwitz, Bastian 1 items
show more (87)
show less
FILTER BY Jel Classification
G32 15 items
G33 13 items
G00 11 items
G21 11 items
G10 10 items
G28 6 items
G12 5 items
E22 4 items
E44 4 items
G14 4 items
G15 4 items
G20 4 items
G23 4 items
G24 4 items
G34 4 items
G38 4 items
L25 4 items
G01 3 items
G18 3 items
J20 3 items
D80 2 items
D82 2 items
D86 2 items
F30 2 items
G31 2 items
J33 2 items
M41 2 items
R30 2 items
C13 1 items
C23 1 items
C33 1 items
D18 1 items
D25 1 items
D4 1 items
E23 1 items
E30 1 items
E32 1 items
E40 1 items
E52 1 items
F13 1 items
F23 1 items
F36 1 items
F64 1 items
G11 1 items
G22 1 items
G41 1 items
J24 1 items
J62 1 items
K00 1 items
K11 1 items
K20 1 items
L14 1 items
M4 1 items
M40 1 items
M42 1 items
M50 1 items
M52 1 items
M55 1 items
O16 1 items
O47 1 items
Q54 1 items
R10 1 items
show more (58)
show less
FILTER BY Keywords
Bank Lending 8 items
Covenants 8 items
Debt Contract Enforcement 8 items
Private Equity Funds 8 items
corporate governance 3 items
Capital Structure 2 items
Capital structure 2 items
Firm dynamics 2 items
Options 2 items
Private Equity 2 items
Syndicated Loans 2 items
employment 2 items
risk management 2 items
ASU 2016-01 1 items
Ambiguity 1 items
BHC 1 items
Bail-in 1 items
Bank Monitoring 1 items
Bank capital ratios 1 items
Bank competition 1 items
Bank credit 1 items
Bank credit channels 1 items
Bank failures 1 items
Bank insolvency 1 items
Bank opacity 1 items
Bank runs 1 items
Banking 1 items
Banks 1 items
Blockholding 1 items
Business cycles 1 items
CDS spreads 1 items
CEO compensation 1 items
CLO 1 items
COVID 1 items
COVID-19 1 items
Capital misallocation 1 items
Corporate Governance 1 items
Corporate bankruptcy 1 items
Corporate bonds 1 items
Corporate governance 1 items
Corporate profitability 1 items
Credit crunch 1 items
Crises 1 items
Cyclical financial regulation 1 items
Debt Overhang 1 items
Debt maturity 1 items
Decentralized Finance 1 items
Decimalization 1 items
Dedicated 1 items
Default Risk 1 items
Diversification 1 items
Executive compensation 1 items
Financial Crises 1 items
Financial Leverage 1 items
Financial accelerator 1 items
Financial constraints 1 items
Financial crises 1 items
Financial liabilities 1 items
Financing constraints 1 items
Firm size 1 items
Firm structure 1 items
Gradual boom and sudden crash 1 items
Great Recession 1 items
Great Recession Senior Loan Officer Opinion Survey 1 items
Housing markets 1 items
Human capital 1 items
I(1) regressors 1 items
Implied Volatility 1 items
Information dissemination 1 items
Institutional investors 1 items
Intergenerational mobility 1 items
Internal capital markets 1 items
Inventory investment 1 items
Investor type 1 items
Issuance 1 items
Job losses 1 items
Just-in-time production 1 items
LBO 1 items
LBOs 1 items
Labor and finance 1 items
Lead Arranger Share 1 items
Leveraged Loans 1 items
Liquidity 1 items
Liquidity provision 1 items
Loan Sales 1 items
Macrofinance 1 items
Market liquidity 1 items
Market-based pricing 1 items
Mergers & acquisitions 1 items
Misvaluation 1 items
Modigliani-Miller 1 items
Monetary policy normalization 1 items
Net income components 1 items
OTC 1 items
Oil shocks 1 items
Out-of-market lending 1 items
Over-the-counter market 1 items
Over-the-counter markets 1 items
Pipeline Risk 1 items
Platforms 1 items
Policy uncertainty 1 items
Pooled Minimum Eigenvalue (PME) estimator 1 items
Portfolio turnover 1 items
Product pricing 1 items
Quantitative easing 1 items
Quantitative tightening 1 items
Reg-SHO Pilot program 1 items
Relative performance evaluation 1 items
SEC Regulation FD 1 items
SME 1 items
SME lending 1 items
Secondary markets 1 items
Securitization 1 items
Social capital 1 items
Social networks 1 items
Stock crash risk 1 items
TARP 1 items
Trade-off Theory 1 items
Trademarks 1 items
Transaction costs 1 items
Transient 1 items
Transmission of shocks 1 items
Utility Tokens 1 items
acquisitions 1 items
adaptation 1 items
analyst coverage 1 items
asset prices 1 items
bank capital regulations 1 items
bank holding companies 1 items
bank lending standards 1 items
banking 1 items
bankruptcy laws 1 items
banks 1 items
behavioral finance 1 items
board structure 1 items
capital allocation decisions 1 items
cash accumulation 1 items
cash position 1 items
climate change 1 items
contracting 1 items
corporate bonds 1 items
corporate credit conditions 1 items
corporate transparency 1 items
credit 1 items
credit crunch 1 items
credit lines 1 items
credit supply 1 items
culture 1 items
debt structure 1 items
delays in loss recognition 1 items
eigenvalue thresholding 1 items
executive compensation 1 items
feedback effects 1 items
financial accounting 1 items
financial constraints 1 items
financial frictions 1 items
financial institutions 1 items
financial intermediation 1 items
financial ratios 1 items
financial visibility 1 items
firm dynamics 1 items
firm financing 1 items
firm investment 1 items
firm performance 1 items
free cash flow theory 1 items
geopolitical risk 1 items
going private 1 items
home equity extraction 1 items
informal contracts 1 items
information asymmetry 1 items
insider ownership 1 items
institutional investors 1 items
interactive time effects 1 items
internal capital markets 1 items
investment 1 items
investor inattention 1 items
job losses 1 items
lead arranger 1 items
leveraged loans 1 items
liquidity provision 1 items
loan covenants 1 items
loan loss reserve 1 items
loan sales 1 items
loan spreads 1 items
loan substitutability 1 items
loan terms 1 items
macro-finance 1 items
market liquidity 1 items
monetary policy transmission 1 items
multinational firms 1 items
multiple long run relations 1 items
overinvestment 1 items
panel data 1 items
prepayment 1 items
primary and secondary market spreads 1 items
production networks 1 items
quantitative easing 1 items
real estate collateral 1 items
regulation 1 items
secondary markets 1 items
syndicated lending 1 items
syndicated loans 1 items
trade war 1 items
underwriting 1 items
zombie firms 1 items
show more (200)
show less