25 Jahre IWH

Professor Reint E. Gropp, Ph.D.

Professor Reint E. Gropp, Ph.D.
Aktuelle Position

seit 11/14

Präsident

Leibniz-Institut für Wirtschaftsforschung Halle (IWH)

seit 10/14

Universitätsprofessor für Volkswirtschaftslehre


Otto-von-Guericke-Universität, Magdeburg

seit 10/08

Fellow

Center for Financial Studies (CFS), Frankfurt

Forschungsschwerpunkte

  • Finanzökonomik
  • Makroökonomik
  • Unternehmensfinanzierung
  • Geld und Banken

Seit November 2014 hat Reint E. Gropp das Amt des Präsidenten des IWH inne und ist Inhaber eines Lehrstuhls für Volkswirtschaftslehre an der Otto-von-Guericke-Universität Magdeburg. Er ist Fellow des Center for Financial Studies, Frankfurt, und Mit-Herausgeber des Review of Finance. Als Berater ist er unter anderem für die Bank of Canada und die Federal Reserve Bank of San Francisco tätig.

Reint E. Gropp hat Volkswirtschaftslehre an der Universität Freiburg und der University of Wisconsin, Madison, studiert. Im Jahr 1994 schloss er dort seine Promotion in Economics ab. Vor seinem Amtsantritt am IWH war er Professor an der Goethe-Universität Frankfurt am Main und hatte dort die Stiftungsprofessur für Sustainable Banking and Finance inne. Zuvor war er in verschiedenen Positionen für den Internationalen Währungsfonds (IWF) sowie für die Europäische Zentralbank (EZB) tätig, zuletzt als Deputy Head der Financial Research Division.

Ihr Kontakt

Professor Reint E. Gropp, Ph.D.
Professor Reint E. Gropp, Ph.D.
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Publikationen

Spillover Effects among Financial Institutions: A State-Dependent Sensitivity Value-at-Risk Approach

Z. Adams R. Füss Reint E. Gropp

in: Journal of Financial and Quantitative Analysis , Nr. 3, 2014

Abstract

In this paper, we develop a state-dependent sensitivity value-at-risk (SDSVaR) approach that enables us to quantify the direction, size, and duration of risk spillovers among financial institutions as a function of the state of financial markets (tranquil, normal, and volatile). For four sets of major financial institutions (commercial banks, investment banks, hedge funds, and insurance companies) we show that while small during normal times, equivalent shocks lead to considerable spillover effects in volatile market periods. Commercial banks and, especially, hedge funds appear to play a major role in the transmission of shocks to other financial institutions.

Publikation lesen

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The Effect of Personal Bankruptcy Exemptions on Investment in Home Equity

S. Corradin Reint E. Gropp H. Huizinga Luc Laeven

in: Journal of Financial Intermediation , 2016

Abstract

Homestead exemptions to personal bankruptcy allow households to retain their home equity up to a limit determined at the state level. Households that may experience bankruptcy thus have an incentive to bias their portfolios towards home equity. Using US household data for the period 1996 to 2006, we find that household demand for real estate is relatively high if the marginal investment in home equity is covered by the exemption. The home equity bias is more pronounced for younger and less healthy households that face more financial uncertainty and therefore have a higher ex ante probability of bankruptcy. These results suggest that homestead exemptions have an important bearing on the portfolio allocation of US households and the extent to which they insure against bad shocks.

Publikation lesen

The Dynamics of Bank Spreads and Financial Structure

Reint E. Gropp C. Kok J.-D. Lichtenberger

in: Quarterly Journal of Finance , Nr. 4, 2014

Abstract

This paper investigates the effect of within banking sector competition and competition from financial markets on the dynamics of the transmission from monetary policy rates to retail bank interest rates in the euro area. We use a new dataset that permits analysis for disaggregated bank products. Using a difference-in-difference approach, we test whether development of financial markets and financial innovation speed up the pass through. We find that more developed markets for equity and corporate bonds result in a faster pass-through for those retail bank products directly competing with these markets. More developed markets for securitized assets and for interest rate derivatives also speed up the transmission. Further, we find relatively strong effects of competition within the banking sector across two different measures of competition. Overall, the evidence supports the idea that developed financial markets and competitive banking systems increase the effectiveness of monetary policy.

Publikation lesen

Arbeitspapiere

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Bank Response To Higher Capital Requirements: Evidence From A Quasi-natural Experiment.

Reint E. Gropp Thomas Mosk Steven Ongena Carlo Wix

in: IWH-Diskussionspapiere , Nr. 33, 2016

Abstract

We study the impact of higher capital requirements on banks’ balance sheets and its transmission to the real economy. The 2011 EBA capital exercise provides an almost ideal quasi-natural experiment, which allows us to identify the effect of higher capital requirements using a difference-in-differences matching estimator. We find that treated banks increase their capital ratios not by raising their levels of equity, but by reducing their credit supply. We also show that this reduction in credit supply results in lower firm-, investment-, and sales growth for firms which obtain a larger share of their bank credit from the treated banks.

Publikation lesen

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Suppliers as Liquidity Insurers

Reint E. Gropp Daniel Corsten Panos Markou

in: IWH-Diskussionspapiere , Nr. 8, 2017

Abstract

We examine how financial constraints in portfolios of suppliers affect cash holdings at the level of the customer. Utilizing a data set of private and public French companies and their suppliers, we show that customers rely on their financially unconstrained suppliers to provide them with backup liquidity, and that they stockpile approximately 10% less cash than customers with constrained suppliers. This effect persisted during the global financial crisis, highlighting that suppliers may be viable insurers of liquidity even when financing from banks and other external channels is unavailable. We further show that customers with unconstrained suppliers also simultaneously receive more trade credit; that the reduction in cash holdings is greater for firms with stronger ties to their unconstrained suppliers; and that customers reduce their cash holdings following a significant relaxation in their suppliers’ financial constraints through an IPO. Taken together, the results provide important nuance regarding the implications of supplier portfolios and financial constraints on firm liquidity management.

Publikation lesen

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The Forward-looking Disclosures of Corporate Managers: Theory and Evidence

Reint E. Gropp Rasa Karapandza Julian Opferkuch

in: IWH-Diskussionspapiere , Nr. 25, 2016

Abstract

We consider an infinitely repeated game in which a privately informed, long-lived manager raises funds from short-lived investors in order to finance a project. The manager can signal project quality to investors by making a (possibly costly) forward-looking disclosure about her project’s potential for success. We find that if the manager’s disclosures are costly, she will never release forward-looking statements that do not convey information to external investors. Furthermore, managers of firms that are transparent and face significant disclosure-related costs will refrain from forward-looking disclosures. In contrast, managers of opaque and profitable firms will follow a policy of accurate disclosures. To test our findings empirically, we devise an index that captures the quantity of forward-looking disclosures in public firms’ 10-K reports, and relate it to multiple firm characteristics. For opaque firms, our index is positively correlated with a firm’s profitability and financing needs. For transparent firms, there is only a weak relation between our index and firm fundamentals. Furthermore, the overall level of forward-looking disclosures declined significantly between 2001 and 2009, possibly as a result of the 2002 Sarbanes-Oxley Act.

Publikation lesen
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