25 Years IWH

Florian Heider, PhD

Florian Heider, PhD
Current Position

since 6/16

Research Affiliate

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

 

Principal Economist

European Central Bank

Research Interests

  • corporate finance
  • banking

Florian Heider is a Principal Economist in the Financial Research Division of the European Central Bank (Frankfurt, Germany) and a Research Fellow at the Centre for Economic Policy Research (London). At the ECB he worked also in the Market Operations Analysis division and the Monetary Policy Strategy division. Prior to the ECB, he was a Visiting Assistant Professor of Finance at the Stern School of Business (New York University) and a Research Fellow at the Financial Markets Group (London School of Economics).

Florian Heider holds a PhD in Economics from the Université catholique de Louvain and a Bachelor of Arts in Politics, Philosophy and Economics from Oxford University. His research focuses on banking and corporate finance. He has published in the Journal of Finance, the Journal of Financial Economics, the Review of Financial Studies, and other peer reviewed academic journals.

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Publications

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The Determinants of Bank Capital Structure

Reint E. Gropp Florian Heider

in: Review of Finance , No. 4, 2010

Abstract

The paper shows that mispriced deposit insurance and capital regulation were of second-order importance in determining the capital structure of large U.S. and European banks during 1991 to 2004. Instead, standard cross-sectional determinants of non-financial firms’ leverage carry over to banks, except for banks whose capital ratio is close to the regulatory minimum. Consistent with a reduced role of deposit insurance, we document a shift in banks’ liability structure away from deposits towards non-deposit liabilities. We find that unobserved time-invariant bank fixed-effects are ultimately the most important determinant of banks’ capital structures and that banks’ leverage converges to bank specific, time-invariant targets.

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