Starting in September 2007 the banking system worldwide was turned upside down; both level and volatility of banks' CDS spreads experienced an eightfold increase that can hardly be motivated by changes in fundamentals. The recent Global Games literature proposes a theory that explains banks'...

We challenge the common view that short-term debt, by having to be rolled over continuously, is a risk factor that exposes banks to higher default risk. First, we show that the average effect of expiring obligations on default risk is insignificant; it is only when a bank has limited access to...

We empirically study the nature of rollover risk and show how banks manage it. Having to roll over debt does not lead to higher default risk per se. Only banks that lose significant access to new funding while having to roll over debt display higher default risk. We identify a factor that...

We empirically document the dynamics of information production and information sensitivityof bank debt around the Great Recession. As more precise information is produced at theonset of the crisis, bank debt becomes informationally sensitive, along two separate dimensions.First, precise...

We challenge the common view that short-term debt, by having to be rolled over continuously, is a risk factor that exposes banks to higher default risk. First, we show that the average effect of expiring obligations on default risk is insignificant; it is only when a bank has limited access to...

This paper takes advantage of the COVID-19 outbreak to explore the determinants of firms' R&D choices around an exogenous shock. We make use of unique panel data on 7,800 Italian companies between January 2020 - right before the pandemic - and March of the same year - amid lockdown policies. We...