Gross domestic product
Gross domestic product Gross domestic product (GDP) includes the value of all goods and services produced in an economic area during a specific period of time. It is ...
IWH Doctoral Programme in Economics
Why Doctoral Studies at IWH? ...
Internship at Halle Institute for Economic Research (IWH) Interested in gaining an...
About the CIA and a glass of red wine ... Professor Dr Udo Ludwig on the...
When there were almost no flats in Halle yet ... Brigitte Loose about IWH's...
The Political Economy of the European Banking Union
The Political Economy of the European Banking Union ...
Contact Get a quick overview of how to reach us and whom to contact: Postal...
The Impact of Political Uncertainty on Institutional Ownership
Bill Francis, Iftekhar Hasan, Yun Zhu
Journal of Financial Stability,
This paper provides original evidence from institutional investors that political uncertainty greatly affects investment behavior. Using institutional holdings of common stock, we find that institutions significantly reduce their holdings by 0.8–2.3% points during presidential election years. Such effect holds for gubernatorial elections with cross-state-border difference-in-difference analysis and for tests using a political uncertainty index. The effect is the opposite for American Depository Receipts (ADRs). In addition, we find that institutions benefit financially from the observed strategy, and such strategy is in line with predicted outcomes of presidential election polls.
Global Syndicated Lending during the COVID-19 Pandemic
Iftekhar Hasan, Panagiotis Politsidis, Zenu Sharma
Journal of Banking and Finance,
This paper examines the pricing of global syndicated loans during the COVID-19 pandemic. We find that loan spreads rise by over 11 basis points in response to a one standard deviation increase in the lender's exposure to COVID-19 and over 5 basis points for an equivalent increase in the borrower's exposure. This implies excess interestof about USD 5.16 million and USD 2.37 million respectively for a loan of average size and duration. The aggravating effect of the pandemic is exacerbated with the level of government restrictions to tackle the virus's spread, with firms’ financial constraints and reliance on debt financing, whereas it is mitigated for relationship borrowers, borrowers listed in multiple exchanges or headquartered in countries that can attract institutional investors.