Zhao, Zhiming; Qiu, Lingyan; Shu, Jianping - In: International review of economics & finance : IREF 98 (2025), pp. 1-16
This study quantifies the impact of write-down equity (WDE) on bank stability and risk-taking incentives under … their prices. Our paper shows that: first, write-down equity plays an important role in eliminating managerial risk …-taking incentives: a 1% increase in write-down ratio reduces the managerial optimal risk level by 0.2%. Second, WDE has double effect of …
