Die Abteilung „Finanzmärkte“ am IWH befasst sich mit dem institutionellen Wandel von Finanzsystemen in Europa. Die Forschung der Abteilung beschäftigt sich mit den Ursachen und Wirkungen der internationalen Tätigkeit von Banken und anderen Finanzintermediären, dem Zusammenhang zwischen Marktstrukturen im Bankensektor und gesamtwirtschaftlicher Stabilität, Ansteckungseffekten auf internationalen Finanzmärkten sowie der Rolle des Finanzsektors für die Realwirtschaft.
Hierbei spielen insbesondere Wechselwirkungen zwischen dem Finanzsektor und Wachstums- und Innovationsprozessen in der Realwirtschaft eine Rolle. Methodisch zielt die Forschung der Abteilung auf die integrierte Betrachtung von Anpassungen auf der Mikro- und Makroebene sowie die Evaluation wirtschaftspolitischer Maßnahmen zur Regulierung von Finanzmärkten.
CEO Investment of Deferred Compensation Plans and Firm Performance
in: Journal of Business Finance & Accounting, im Erscheinen
We study how US chief executive officers (CEOs) invest their deferred compensation plans depending on the firm's profitability. By looking at the correlation between the CEO's return on these plans and the firm's stock return, we show that deferred compensation is to a large extent invested in the company equity in good times and divested from it in bad times. The divestment from company equity in bad times arguably reflects CEOs' incentive to abandon the firm and to invest in alternative instruments to preserve the value of their deferred compensation plans. This result suggests that the incentive alignment effects of deferred compensation crucially depend on the firm's health status.
Investor Relations and IPO Performance
in: Review of Accounting Studies, im ErscheinenPublikation lesen
Foreign Bank Ownership and Income Inequality: Empirical Evidence
in: Applied Economics, im ErscheinenPublikation lesen
Foreign Ownership, Bank Information Environments, and the International Mobility of Corporate Governance
in: Journal of International Business Studies, im Erscheinen
This paper investigates how foreign ownership shapes bank information environments. Using a sample of listed banks from 60 countries over 1997–2012, we show that foreign ownership is significantly associated with greater (lower) informativeness (synchronicity) in bank stock prices. We also find that stock returns of foreign-owned banks reflect more information about future earnings. In addition, the positive association between price informativeness and foreign ownership is stronger for foreign-owned banks in countries with stronger governance, stronger banking supervision, and lower monitoring costs. Overall, our evidence suggests that foreign ownership reduces bank opacity by exporting governance, yielding important implications for regulators and governments.
Benchmark on Themselves: CEO-directors’ Influence on the CEO Compensation
in: Managerial Finance, im Erscheinen
The purpose of this paper is to examine whether or not the chief executive officers’ (CEO) compensation is affected by the compensation of the outside directors sitting on their board, who are also CEOs of other firms.
Do Conventional Monetary Policy Instruments Matter in Unconventional Times?
in: Deutsche Bundesbank Discussion Paper, Nr. 27, 2019
This paper investigates how declines in the deposit facility rate set by the ECB affect euro area banks’ incentives to hold reserves at the central bank. We find that, in the face of lower deposit rates, banks with a more interest-sensitive business model are more likely to reduce reserve holdings and allocate freed-up liquidity to loans. The result is driven by well-capitalized banks in the non-GIIPS countries of the euro area. This reveals that conventional monetary policy instruments have limited effects in restoring monetary policy transmission during times of crisis.
Firm-level Employment, Labour Market Reforms, and Bank Distress
in: IWH-Diskussionspapiere, Nr. 15, 2019
We explore the interaction between labour market reforms and financial frictions. Our study combines a new cross-country reform database on labour market reforms with matched firm-bank data for nine euro area countries over the period 1999 to 2013. While we find that labour market reforms are overall effective in increasing employment, restricted access to bank credit can undo up to half of long-term employment gains at the firm-level. Entrepreneurs without sufficient access to credit cannot reap the full benefits of more flexible employment regulation.
Do Asset Purchase Programmes Shape Industry Dynamics? Evidence from the ECB's SMP on Plant Entries and Exits
in: IWH-Diskussionspapiere, Nr. 12, 2019
Asset purchase programmes (APPs) may insulate banks from having to terminate relationships with unproductive customers. Using administrative plant and bank data, we test whether APPs impinge on industry dynamics in terms of plant entry and exit. Plants in Germany connected to banks with access to an APP are approximately 20% less likely to exit. In particular, unproductive plants connected to weak banks with APP access are less likely to close. Aggregate entry and exit rates in regional markets with high APP exposures are also lower. Thus, APPs seem to subdue Schumpeterian cleansing mechanisms, which may hamper factor reallocation and aggregate productivity growth.
‘And Forgive Us Our Debts’: Do Christian Moralities Influence Over-indebtedness of Individuals?
in: IWH-Diskussionspapiere, Nr. 8, 2019
This paper analyses whether Christian moralities and rules formed differently by Catholics and Protestants impact the likelihood of households to become overindebted. We find that over-indebtedness is lower in regions in which Catholics outweigh Protestants, indicating that Catholics‘ forgiveness culture and a stricter enforcement of rules by Protestants serve as explanations for our results. Our results provide evidence that religion affects the financial situations of individuals and show that even 500 years after the split between Catholics and Protestants, the differences in the mind-sets of both denominations play an important role for situations of severe financial conditions.
What Drives Banks‘ Geographic Expansion? The Role of Locally Non-diversifiable Risk
in: IWH-Diskussionspapiere, Nr. 6, 2019
We show that banks that are facing relatively high locally non-diversifiable risks in their home region expand more across states than banks that do not face such risks following branching deregulation in the 1990s and 2000s. These banks with high locally non-diversifiable risks also benefit relatively more from deregulation in terms of higher bank stability. Further, these banks expand more into counties where risks are relatively high and positively correlated with risks in their home region, suggesting that they do not only diversify but also build on their expertise in local risks when they expand into new regions.