07.05.2024 • 14/2024
IWH-Insolvenztrend: Im April erneut Höchststand bei der Zahl der Unternehmensinsolvenzen, sehr viele Jobs betroffen
Die Zahl der Insolvenzen von Personen- und Kapital-
gesellschaften ist im April den dritten Monat in Folge auf einen weiteren Höchstwert gestiegen. Auch die Zahl der betroffenen Arbeitsplätze ist außergewöhnlich hoch. Das Ende der Insolvenzwelle ist jedoch bereits in Sicht.
Steffen Müller
Read
Alumni
IWH Alumni The IWH maintains contact with its former employees worldwide. We involve our alumni in our work and keep them informed, for example, with a newsletter. We also plan…
See page
The Political Economy of the European Banking Union
The Political Economy of the European Banking Union Junior Professorship Lena Tonzer, PhD: The Political Economy of the European Banking Union: Causes for National Differences in…
See page
Transformation tables for administrative borders in Germany
Transformation tables for administrative borders in Germany The state has the ability to change the original spatial structure of its administrative regions. The stated goal of…
See page
Privacy
Data Protection Policy We take the protection of your personal data very seriously and treat your personal data with confidentiality and in compliance with the provisions of law…
See page
Data
Transformation tables for administrative borders in Germany – data In order to demonstrate what kind of information the available tables contain and how they are structured, the…
See page
Research Clusters
Three Research Clusters Research Cluster "Economic Dynamics and Stability" Research Questions This cluster focuses on empirical analyses of macroeconomic dynamics and stability.…
See page
Projects
Our Projects 07.2022 ‐ 12.2026 Evaluation of the InvKG and the federal STARK programme On behalf of the Federal Ministry of Economics and Climate Protection, the IWH and the RWI…
See page
IWH Retreat, 28-29 October
IWH Retreat October 28 and 29, 2024 from Reint Gropp, March 4, 2024 Dear colleagues, I would like to ask you to reserve the 28 th and 29 th of October , 202 4 in your calendars –…
See page
The Adverse Effect of Contingent Convertible Bonds on Bank Stability
Melina Ludolph
IWH Discussion Papers,
No. 1,
2022
Abstract
This paper examines the effect of CoCo bonds that qualify as additional tier 1 capital on bank fundamentals. The results reveal a significant reduction in the distance to insolvency following the hybrid bond issuance due to increased earnings volatility. Further analyses suggest a link between CoCo issuance and more active earnings management, evidenced by a higher standard deviation of loan loss provisions and impairment charges. The findings substantiate long-standing theoretical hypotheses suggesting that the regulatory design requirements for going-concern CoCos adversely affect bank stability. Furthermore, they correspond to the notion that private monitoring is largely absent as a corrective measure due to prevailing uncertainties and information frictions.
Read article
