This paper provides new evidence that taxes affect capital structure choice, using a unique and comprehensive panel data set which covers 86,173 German non-financial firms over the years 1973-2008. Following the Graham methodology to simulate marginal tax rates, we find a statistically and...

This article analyzes 336 German venture capital transactions between 1990 to 2005 and seeks to determine why selected financial securities differ across deals. We find that a broad array of financial instruments is used covering straight equity, mezzanine and debt like securities. Based on the...

This paper contributes to the literature on early warning indicators by applying a Bayesian model averaging approach. Our analysis, based on Austrian data, is carried out in two steps: First, we construct a quarterly financial stress index (AFSI) quantifying the level of stress in the Austrian...

This paper investigates contagion in the German interbank market under the assumption of a stochastic loss given default (LGD). We combine a unique data set about the LGD of interbank loans with detailed data about interbank exposures. We find that the frequency distribution of the LGD is...

This study analyzes the impact of bank relationships on a firm's cost of debt. We focus on relationships with the main bank. We find that a firm's cost of debt decreases with relationship strength, proxied by the share of bank debt provided by the main lender, but rises with relationship length....

This study analyzes the determinants of relationship banking in Germany and their impact on the firms' borrowing costs. The analysis is based on unique micro data comprising firms' balance sheet data and their lending relationships with banks. We find that the number of lending relationships...