A Note of Caution on Quantifying Banks' Recapitalization Effects
Felix Noth, Kirsten Schmidt, Lena Tonzer
Journal of Money, Credit and Banking,
im Erscheinen
Abstract
Unconventional monetary policy measures like asset purchase programs aim to reduce certain securities' yield and alter financial institutions' investment behavior. These measures increase the institutions' market value of securities and add to their equity positions. We show that the extent of this recapitalization effect crucially depends on the securities' accounting and valuation methods, country-level regulation, and maturity structure. We argue that future research needs to consider these factors when quantifying banks' recapitalization effects and consequent changes in banks' lending decisions to the real sector.
Artikel Lesen
Banking Globalization, Local Lending, and Labor Market Effects: Micro-level Evidence from Brazil
Felix Noth, Matias Ossandon Busch
Journal of Financial Stability,
October
2021
Abstract
Recent financial crises have prompted the interest in understanding how banking globalization interacts with domestic institutions in shaping foreign shocks’ transmission. This paper uses regional banking data from Brazil to show that a foreign funding shock to banks negatively affects lending by their regional branches. This effect increases in the presence of frictions in internal capital markets, which affect branches’ capacity to access funding from other regions via intra-bank linkages. These results also matter on an aggregate level, as municipality-level credit and job flows drop in exposed regions. Policies aiming to reduce the fragmented structure of regional banking markets could moderate the propagation of foreign shocks.
Artikel Lesen
The Impact of Delay: Evidence from Formal Out-of-Court Restructuring
Randall K. Filer, Dejan Kovač, Jacob N. Shapiro, Stjepan Srhoj
IWH Discussion Papers,
Nr. 10,
2021
Abstract
Bankruptcy restructuring procedures are used in most legal systems to decide the fate of businesses facing financial hardship. We study how bargaining failures in such procedures impact the economic performance of participating firms in the context of Croatia, which introduced a „pre-bankruptcy settlement“ (PBS) process in the wake of the Great Recession of 2007 - 2009. Local institutions left over from the communist era provide annual financial statements for both sides of more than 180,000 debtor-creditor pairs, enabling us to address selection into failed negotiations by matching a rich set of creditor and debtor characteristics. Failures to settle at the PBS stage due to idiosyncratic bargaining problems, which effectively delays entry into the standard bankruptcy procedure, leads to a lower rate of survival among debtors as well as reduced employment, revenue, and profits. We also track how bargaining failures diffuse through the network of creditors, finding a significant negative effect on small creditors, but not others. Our results highlight the impact of delay and the importance of structuring bankruptcy procedures to rapidly resolve uncertainty about firms‘ future prospects.
Artikel Lesen
29.07.2021 • 20/2021
Kommunikation statt Konflikt – was weibliche CEOs für Hedgefonds interessant macht
Der Wert weiblich geführter Unternehmen wird durch die Intervention aktivistischer Investoren stärker erhöht als der von Unternehmen mit männlichen CEOs. Das geht aus einer aktuellen Veröffentlichung von Iftekhar Hasan (Fordham University und IWH) und Qiang Wu (Rensselaer Polytechnic Institute, RPI) am Leibniz Institut für Wirtschaftsforschung Halle (IWH) hervor. „Die Ergebnisse zeigen, dass weibliche CEOs aufgrund ihrer starken kommunikativen und zwischenmenschlichen Fähigkeiten besonders von der Intervention von aktivistischen Hedgefonds profitieren“, erklärt Iftekhar Hasan. Denn im Durchschnitt erhöht das Eingreifen eines aktivistischen Hedgefonds den Wert des Unternehmens ex post. Um das zu erreichen, setzen aktivistische Hedgefonds wie Carl Icahn, Trian Fundmanagement oder Elliott bevorzugt auf Kommunikation und Kooperation mit dem Management.
Reint E. Gropp
Pressemitteilung lesen
Startseite
IWH-Insolvenztrend: Zahl der Insolvenzen stabilisiert sich im April Deutlich schneller als die amtliche Statistik...
Zur Seite
CompNet Database
The CompNet Competitiveness Database The Competitiveness Research Network (CompNet)...
Zur Seite
IWH-Insolvenzforschung
IWH-Insolvenzforschung Die IWH-Insolvenzforschungsstelle bündelt die...
Zur Seite
IWH Doctoral Programme in Economics
Warum ein Doktorandenstudium am IWH? ...
Zur Seite
Wirtschaft im Wandel
Wirtschaft im Wandel Die Zeitschrift „Wirtschaft im Wandel“ will eine breite...
Zur Seite
PhD Graduates Financial Markets
PhD Graduates of the Department of Financial Markets Hannes Böhm: "The Role of...
Zur Seite
