This study evaluates the credit risk of sustainable loans in a preferential capital requirement programme. We utilise loanlevel data from a uniquely implemented programme from Hungary, applying logistic regressions and survival analysis techniques. We observe a significantly reduced credit risk...

The paper evaluates the impact of the European Commission's Seventh Framework Programme (FP7) grants on profit‐oriented firms' post‐treatment performance. Using a quasi‐experimental design and a dataset covering applicants from 46 countries, we find that FP7 grants increase firms' sales...

We examine peer effects in mortgage borrowing decisions. We find that having financially literate colleagues improves the borrowing decisions of financially less literate co‐workers. Interest rates on the mortgage loans of these co‐workers are significantly lower than for similar employees,...

Local currency borrowers are statistically significantly affected by exchange rate fluctuations due to the bank lending channel. Using microdata on borrowers from Hungary, this study examines the spillover effects of foreign currency loans on local currency borrowers following an unexpected...

We exploit a nation-wide introduction of mandatory disclosure of borrowers' total credit exposures and show that sharing such information increases credit access independent of borrowers' history. Differentiating between borrowers applying to competitor banks and those reapplying to their...

This paper estimates the impact of acquisitions on various firm-level performance measures of Hungarian firms. Using difference-in-differences estimation with matching, we show that the performance of the acquirer improves significantly following an acquisition. By controlling for the –...

Forecast combinations have been repeatedly shown to outperform individual professional forecasts and complicated time series models in accuracy. Their ease of use and accuracy makes them important tools for policy decisions. While simple combinations work remarkably well in some situations,...

I carry out an empirical analysis to recover stock analysts' loss functions from observations on forecasts, actual realizations and a proxy for the publicly observed part of the analyst's information set. The forecasts I use are analyst stock (buy/hold/sell) recommendations for two Blue Chip...

Liquidity and market risk are key considerations in financial markets, especially in times of financial crises. For this reason, regulatory attention to and measures in these fields have been on the rise for the past years. Based on practical experience, regulations aiming at ensuring funding...

We study the nexus between endogenous growth and asset prices. We show that endogenous growth models with either horizontal and vertical innovation match financial data well due to countercyclical dividends which are either procyclical or acyclical in US data. Countercyclical dividends...