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Green Bonds : Effectiveness and Implications for Public Policy

Flammer, Caroline - 2019

This paper studies green bonds, a relatively new instrument in sustainable finance. I first describe the market for green bonds and characterize the “green bond boom” witnessed in recent years. Second, using firm-level data on green bonds issued by public companies, I examine companies'...

Persistent link: https://www.econbiz.de/10012868354

Pledgeability, Industry Liquidity, and Financing Cycles

Diamond, Douglas W. - 2017

of financing cycles where the importance of creditors' control rights over cash flows (“pledgeability”) varies with …

Persistent link: https://www.econbiz.de/10012965425

Khan, B. Zorina - 2017

Scholars engage in extensive debate about the role of families and corporations in economic growth. Some propose that personal ties provide a mechanism for overcoming such transactions costs as asymmetrical information, while others regard familial connections as conduits for inefficiency, with...

Persistent link: https://www.econbiz.de/10012965431

Financing Durable Assets

Rampini, Adriano A. - 2016

This paper studies the effect of durability on the financing of durable assets. We show that more durable assets … the price of an asset and hence the overall financing need more than its collateral value. This insight has implications … dominated technologies. More durable assets are more likely to be rented given their larger financing need. Legal enforcement …

Persistent link: https://www.econbiz.de/10012989134

Illiquid Banks, Financial Stability, and Interest Rate Policy

Diamond, Douglas W.; Rajan, Raghuram Govind - 2021

Banks finance illiquid assets with demandable deposits, which discipline bankers but expose them to damaging runs. Authorities may not want to stand by and watch banks collapse. However, unconstrained direct bailouts undermine the disciplinary role of deposits. Moreover, competition forces banks...

Persistent link: https://www.econbiz.de/10013224404

Household Leverage and the Recession of 2007 to 2009

Mian, Atif; Sufi, Amir - 2021

We show that household leverage as of 2006 is a powerful statistical predictor of the severity of the 2007 to 2009 recession across U.S. counties. Counties in the U.S. that experienced a large increase in household leverage from 2002 to 2006 showed a sharp relative decline in durable consumption...

Persistent link: https://www.econbiz.de/10013224411

Public Pension Funding in Practice

Munnell, Alicia Haydock - 2010

Public pension funding has recently become a front-burner policy issue in the wake of the financial crisis and given the pending retirement of large numbers of baby boomers. This paper examines the current funding of state and local pensions using a sample of 126 plans, estimating an aggregate...

Persistent link: https://www.econbiz.de/10013137305

Borrow Cheap, Buy High? The Determinants of Leverage and Pricing in Buyouts

Axelson, Ulf - 2010

on the financing of 1157 worldwide private equity deals from 1980 to 2008. Buyout leverage is cross-sectionally unrelated … availability of financing impacts booms and busts in the private equity market, and that agency problems between private equity …

Persistent link: https://www.econbiz.de/10013144159

Resource Allocation within Firms and Financial Market Dislocation : Evidence from Diversified Conglomerates

Matvos, Gregor - 2011

When external capital markets are stressed they may not reallocate resources between firms. We show that resource allocation within firms' internal capital markets provides an important force countervailing financial market dislocation. Using data on US conglomerates we empirically verify that...

Persistent link: https://www.econbiz.de/10013117120

When Credit Bites Back : Leverage, Business Cycles, and Crises

Jordà, Òscar - 2011

This paper studies the role of credit in the business cycle, with a focus on private credit overhang. Based on a study of the universe of over 200 recession episodes in 14 advanced countries between 1870 and 2008, we document two key facts of the modern business cycle: financial-crisis...

Persistent link: https://www.econbiz.de/10013118125