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 joined the institute as a Research Affiliate in June 2016. His research focuses on banking and corporate finance.

Florian Heider holds the position of principal economist in the Financial Research Division of the European Central Bank. Apart from that, he is a Research Fellow at the Centre for Economic Policy Research.

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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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