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.

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

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Hidden Gems and Borrowers with Dirty Little Secrets: Investment in Soft Information, Borrower Self-selection and Competition

Reint E. Gropp Andre Guettler

in: Journal of Banking & Finance , im Erscheinen

Abstract

This paper empirically examines the role of soft information in the competitive interaction between relationship and transaction banks. Soft information can be interpreted as a valuable signal about the quality of a firm that is observable to a relationship bank, but not to a transaction bank. We show that borrowers self-select to relationship banks depending on whether their observed soft information is positive or negative. Competition affects the investment in learning the soft information from firms by relationship banks and transaction banks asymmetrically. Relationship banks invest more; transaction banks invest less in soft information, exacerbating the selection effect.

Publikation lesen

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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

Payment Defaults and Interfirm Liquidity Provision

F. Boissay Reint E. Gropp

in: Review of Finance , Nr. 6, 2013

Abstract

Using a unique data set on French firms, we show that credit constrained firms that face liquidity shocks are more likely to default on their payments to suppliers. Credit constrained firms pass on a sizeable fraction of such shocks to their suppliers. This is consistent with the idea that firms provide liquidity insurance to each other and that this mechanism is able to alleviate credit constraints. We show that the chain of defaults stops when it reaches unconstrained firms. Liquidity appears to be allocated from firms with access to outside finance to credit constrained firms along supply chains.

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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