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This paper finds that shareholder-friendly corporate governance is positively associated with bank insolvency risk, as …-2008 period. Banks are special in that ‘good’ corporate governance increases bank insolvency risk relatively more for banks that … capital ratio. Furthermore, ‘good’ corporate governance is associated with more bank risk taking at times of rapid economic …
Persistent link: https://www.econbiz.de/10011084512
This paper examines how corporate governance and executive compensation affect bank capitalization strategies for an … to give rise to lower bank capitalization. Boards of intermediate size, separation of the CEO and chairman roles, and an … absence of anti-takeover provisions, in particular, lead to low bank capitalization. However, executive options and stock …
Persistent link: https://www.econbiz.de/10011083556
foreigners. We use a bank-level panel data set spanning all British and foreign banks providing loans within the United Kingdom …," domestic (British) loans of a bank expressed as a fraction of its total loan activity. We also study effective short …
Persistent link: https://www.econbiz.de/10009024484
Today’s regulatory rules, especially the easily-manipulated measures of regulatory capital, have led to costly bank … failures. We design a robust regulatory system such that (i) bank losses are credibly borne by the private sector (ii …) systemically important institutions cannot collapse suddenly; (iii) bank investment is counter-cyclical; and (iv) regulatory …
Persistent link: https://www.econbiz.de/10011083692
creating counter-cyclical incentives for banks to raise capital, and so encourage bank lending in bad times. They avoid the …
Persistent link: https://www.econbiz.de/10011083972
Using a stochastic frontier model and a comprehensive dataset, we study factors that affect corporate efficiency in Europe. We find that (i) larger firms are less efficient than smaller firms, (ii) greater leverage contributes to corporate efficiency, and (iii) high competition is less...
Persistent link: https://www.econbiz.de/10011213309
Miscoordination of buyers might prevent entry in an industry with an incumbent and a more efficient potential entrant. Buyers' power therefore favours entry by eliminating coordination problems. We also identify a mechanism which facilitates entry: if the potential entrant could credibly offer...
Persistent link: https://www.econbiz.de/10005789109
This paper surveys recent work on competition in markets in which consumers face costs to switching between competing firms' products, even when all firms' products are functionally identical. I address issues in macroeconomics, international trade and industrial organization: In a market with...
Persistent link: https://www.econbiz.de/10005123734
A particular tariff option is said to be foggy when another option or a combination of other tariff options offered by the same firm is always less expensive regardless of the usage profile of any customer. Alternatively, tariff fogginess may refer to the whole set of tariff options and it is...
Persistent link: https://www.econbiz.de/10005123743
I study how firms actually compete in nonlinear tariffs by analyzing whether the incumbent and entrant's decisions to offer a given number of tariff options are interrelated. The goal is to shed some light on those dynamic and strategic aspects of tariff menus that are currently ignored by...
Persistent link: https://www.econbiz.de/10005123929