Penned because: Kupiec, Paul H. and you may Carlos D. Ramirez. «Financial Failures as well as the Price of General Chance: Facts out of 1900-1930.» Diary regarding Monetary Intermediation twenty two, zero. step 3 (2013): 285-307.
Which papers investigates the result away from financial problems on financial growth having fun with analysis of 1900 to help you 1930, a time that predates energetic bodies stabilizing procedures and you can has attacks from banking system stress that are not coincident that have recessions. Playing with both VAR and you will a distinction-in-differences methods you to exploits the brand new reactions of one’s Ny and you may Connecticut economies to the Worry out of 1907, i imagine brand new impression out-of bank problems for the economic craft. Over this period, an excellent 0.twelve percent (1 standard departure) escalation in the fresh new obligations of your own unsuccessful depository associations causes a reduction of 17 payment activities from the growth rate of commercial development and you will a beneficial 4 fee section decrease in genuine GNP development.
Authored while the: Jorion, Philippe and you will Gaiyan Zhang. «Credit Contagion out-of Counterparty Exposure.» The fresh new Log of Loans 64, no. 5 (2009): 2053-2087.
Simple credit risk models dont explain the seen clustering regarding standard, both named «credit contagion.» It paper gets the basic empirical studies out-of credit contagion through direct counterparty outcomes. I check the fresh new wide range results of case of bankruptcy announcements to your loan providers using another database. An average of, loan providers feel significant bad irregular guarantee output and you will expands inside Dvds develops. In addition, financial institutions are more inclined to suffer from monetary distress later on. These effects try more powerful to have industrial creditors than financials. Simulations calibrated to the efficiency mean that counterparty exposure could easily explain the noticed an excessive amount of clustering off defaults. This means that you to counterparty exposure is an important extra channel away from borrowing from the bank contagion and that newest portfolio credit chance models understate new likelihood of highest losses.
New decreases exist within three quarters of your own initially bank failure wonder and can feel interpreted while the a measure of the costs out of endemic chance about banking business
Deposit Insurance coverage and you may Bank Exposure-Taking: Evidence off Interior Loan Feedback FDIC Heart to have Economic Research Doing work Paper Zero. 2008-07 Vasso P. Ioannidou and you can Maria Fabiana Penas
Composed because: Ioannidou, Vasso P. and you will Maria Fabiana Penas. «Put Insurance coverage and you can Lender Exposure-Taking: Proof away from Inner Financing Reviews.» Journal from Economic Intermediation 19, zero. 1 (2010): 95-115.
That it papers assesses the outcome away from put insurance into banks’ exposure-taking in this new framework out of a natural check out having fun with outlined credit registry studies. I investigation the fact regarding a surfacing discount, Bolivia, you to definitely delivered a deposit insurance policies system from inside the try period, therefore we compare banks’ exposure-getting pre and post the development of this system. age., money that have bad recommendations within origination). These money bring higher rates of interest and tend to be regarding the even worse ex-article results. I also find that collateral standards and you may loan maturities commonly adjusted to pay with the a lot more exposure. Most efficiency advise that the rise inside the risk-taking stems from a reduction in sector discipline out of highest depositors. All of our findings together with recommend that variations in risk-bringing between highest (too-big-to-fail) and you will brief banks decreased after payday loans Blue Springs put insurance coverage.
Hedge Finance Activism, Business Governance, and you can Enterprise Abilities FDIC Cardio to have Economic Search Doing work Report Zero. 2008-06 Vasso P. Ioannidou and you will Maria Fabiana Penas
We discover that when the development of put insurance rates, banks are more inclined to initiate riskier finance (i
Had written because: Brav, Alon, Wei Jiang, Frank Partnoy, and you can Randall Thomas. «Hedge Loans Activism, Business Governance, and you may Business Performance.» The brand new Record away from Finance 63, zero. cuatro (2008): 1729-1775.
Using a massive hand-collected dataset from 2001 so you can 2006, we find you to definitely activist hedge fund in the U.S. propose strategic, operational, and monetary cures and you can getting triumph or limited triumph in two thirds of cases. Hedge finance seldom look for control and usually is nonconfrontational. The fresh new abnormal get back in the statement from activism is roughly eight%, and no reversal when you look at the further seasons. Address firms sense grows during the commission, doing work overall performance, and higher Ceo turnover after activism. Our very own research brings very important brand new facts into elements and you can outcomes of informed stockholder keeping track of.