Juniorprofessor Stefano Colonnello, Ph.D.

Juniorprofessor Stefano Colonnello, Ph.D.
Aktuelle Position

seit 3/20

Research Affiliate

Leibniz-Institut für Wirtschaftsforschung Halle (IWH)

seit 9/15

Leiter der Forschungsgruppe Recht und Finanzen

Leibniz-Institut für Wirtschaftsforschung Halle (IWH)

seit 11/19

Juniorprofessor

Ca' Foscari University of Venice, Italien

Forschungsschwerpunkte

  • empirische Unternehmensfinanzierung
  • Relationship Banking
  • Unternehmensführung
  • Rechts- und Finanzwissenschaft

Stefano Colonnello ist seit März 2020 Research Affiliate am IWH. Seine Forschungsinteressen liegen in den Bereichen Rechts- und Finanzwissenschaft, empirische Unternehmensfinanzierung, Unternehmensführung sowie Finanzinstitutionen.

Stefano Colonnello studierte an der Bocconi University in Mailand. Seine Promotion erfolgte an der École Polytechnique Fédérale de Lausanne und am Swiss Finance Institute. Von 2015 bis 2019 war er als wissenschaftlicher Mitarbeiter in der Abteilung Finanzmärkte am IWH und als Juniorprofessor an der Otto-von-Guericke-Universität Magdeburg tätig.

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Juniorprofessor Stefano Colonnello, Ph.D.
Juniorprofessor Stefano Colonnello, Ph.D.
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Publikationen

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The Real Effects of Universal Banking: Does Access to the Public Debt Market Matter?

Stefano Colonnello

in: Journal of Financial Services Research, im Erscheinen

Abstract

I analyze the impact of the formation of universal banks on corporate investment by looking at the gradual dismantling of the Glass-Steagall Act’s separation between commercial and investment banking. Using a sample of US firms and their relationship banks, I show that firms curtail debt issuance and investment after positive shocks to the underwriting capacity of their main bank. This result is driven by unrated firms and is strongest immediately after a shock. These findings suggest that universal banks may pay more attention to large firms providing more underwriting opportunities while exacerbating financial constraints of opaque firms, in line with a shift to a banking model based on transactional lending.

Publikation lesen

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Do courts matter for Firm Value? Evidence from the U.S. Court System

Stefano Colonnello Christoph Herpfer

in: Journal of Law and Economics, Nr. 2, 2021

Abstract

We estimate how US state courts impact firm value by exploiting a US Supreme Court ruling that exogenously changed firms’ exposure to different courts. We find that increased exposure to more business-friendly courts is associated with positive announcement returns. We find no such association for objective court quality. Consistent with the ruling impacting firm value through the legal environment channel, we find that effects are stronger for firms with high litigation exposure. We find that the ruling led to a shift in both the geographic distribution of lawsuits and operations of firms.

Publikation lesen

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Benign Neglect of Covenant Violations: Blissful Banking or Ignorant Monitoring

Stefano Colonnello Michael Koetter Moritz Stieglitz

in: Economic Inquiry, Nr. 1, 2021

Abstract

Theoretically, bank's loan monitoring activity hinges critically on its capitalization. To proxy for monitoring intensity, we use changes in borrowers' investment following loan covenant violations, when creditors can intervene in the governance of the firm. Exploiting granular bank‐firm relationships observed in the syndicated loan market, we document substantial heterogeneity in monitoring across banks and through time. Better capitalized banks are more lenient monitors that intervene less with covenant violators. Importantly, this hands‐off approach is associated with improved borrowers' performance. Beyond enhancing financial resilience, regulation that requires banks to hold more capital may thus also mitigate the tightening of credit terms when firms experience shocks.

Publikation lesen

Arbeitspapiere

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Dynamic Equity Slope

Matthijs Breugem Stefano Colonnello Roberto Marfè Francesca Zucchi

in: Working Papers University of Venice "Ca' Foscari", Nr. 21, 2020

Abstract

The term structure of equity and its cyclicality are key to understand the risks drivingequilibrium asset prices. We propose a general equilibrium model that jointly  explainsfour important features of the term structure of equity: (i) a negative unconditionalterm premium, (ii) countercyclical term premia, (iii) procyclical equity yields, and (iv)premia to value and growth claims respectively increasing and decreasing with thehorizon. The economic mechanism hinges on the interaction between heteroskedasticlong-run growth — which helps price long-term cash flows and leads to countercyclicalrisk premia — and homoskedastic short-term shocks in the presence of limited marketparticipation — which produce sizeable risk premia to short-term cash flows. The slopedynamics hold irrespective of the sign of its unconditional average. We provide empirical support to our model assumptions and predictions.

Publikation lesen

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Benign Neglect of Covenant Violations: Blissful Banking or Ignorant Monitoring?

Stefano Colonnello Michael Koetter Moritz Stieglitz

in: IWH Discussion Papers, im Erscheinen

Abstract

Theoretically, bank‘s loan monitoring activity hinges critically on its capitalisation. To proxy for monitoring intensity, we use changes in borrowers‘ investment following loan covenant violations, when creditors can intervene in the governance of the firm. Exploiting granular bank-firm relationships observed in the syndicated loan market, we document substantial heterogeneity in monitoring across banks and through time. Better capitalised banks are more lenient monitors that intervene less with covenant violators. Importantly, this hands-off approach is associated with improved borrowers‘ performance. Beyond enhancing financial resilience, regulation that requires banks to hold more capital may thus also mitigate the tightening of credit terms when firms experience shocks.

Publikation lesen

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Effectiveness and (In)Efficiencies of Compensation Regulation: Evidence from the EU Banker Bonus Cap

Stefano Colonnello Michael Koetter Konstantin Wagner

in: IWH Discussion Papers, Nr. 7, 2018

Abstract

We investigate the (unintended) effects of bank executive compensation regulation. Capping the share of variable compensation spurred average turnover rates driven by CEOs at poorly performing banks. Other than that, banks‘ responses to raise fixed compensation sufficed to retain the vast majority of non-CEO executives and those at well performing banks. We fail to find evidence that banks with executives that are more affected by the bonus cap became less risky. In fact, numerous results indicate an increase of risk, even in its systemic dimension according to selected measures. The return component of bank performance appears to be unaffected by the bonus cap. Risk hikes are consistent with an insurance effect associated with raised the increase in fixed compensation of executives. The ability of the policy to enhance financial stability is therefore doubtful.

Publikation lesen
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