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Is rated debt arm's length? Evidence from mergers and acquisitions

Gropp, Reint E.; Hirsch, Christian; Krahnen, Jan Pieter - 2011

In this paper we challenge the view that corporate bonds are always arm's length debt. We analyze the effect of bond ratings on the stock price return to acquirers in M&A transactions, which tend to have significant effects on creditor wealth. We find acquirers abnormal returns to be higher if...

Persistent link: https://www.econbiz.de/10010308570

Emerging East Asian Banking Systems Ten Years after the 1997/98 Crisis

Adams, Charles - 2008

This paper looks at the development of the banking sector in emerging East Asia in the 10 years since the financial crisis of 1997/98. It suggests that the health of banking sectors in the region has improved substantially, with key changes including increased foreign ownership, movement into...

Persistent link: https://www.econbiz.de/10010507462

The role of SMEs in Asia and their difficulties in accessing finance

Yoshino, Naoyuki; Taghizadeh-Hesary, Farhad - 2018

Small and medium-sized enterprises (SMEs) are the backbone of the Asian economy. They make up more than 96% of all Asian businesses, providing two out of three private-sector jobs on the continent. Therefore, it is vital for Asian economies' economic success that they have fully functioning...

Persistent link: https://www.econbiz.de/10012254893

Solutions for small and medium-sized entreprises' difficulties in accessing finance: Asian experiences

Yoshino, Naoyuki; Taghizadeh-Hesary, Farhad - 2017

Small and medium-sized enterprises (SMEs) are the backbone of the Asian economy. They make up more than 96% of all Asian businesses that provide two out of three private sector jobs in the continent. Therefore, it is vitally important for the Asian economies' economic success that they have...

Persistent link: https://www.econbiz.de/10011852998

Ratingmodell zur Quantifizierung des Ausfallrisikos von LBO-Finanzierungen

Lang, Michael; Cremers, Heinz; Hentze, Rainald - 2010

Credit risk measurement and management become more important in all financial institutions in the light of the current financial crisis and the global recession. This particularly applies to most of the complex structured financing forms whose risk cannot be quantified with com-mon rating...

Persistent link: https://www.econbiz.de/10010299985

Liquidity hoarding

Gale, Douglas; Yorulmazer, Tanja - 2011

Banks hold liquid and illiquid assets. An illiquid bank that receives a liquidity shock sells assets to liquid banks in exchange for cash. We characterize the constrained efficient allocation as the solution to a planner's problem and show that the market equilibrium is constrained inefficient,...

Persistent link: https://www.econbiz.de/10010287074

The impact of downward rating momentum on credit portfolio risk

Güttler, André; Raupach, Peter - 2008

Rating downgrades are known to make subsequent downgrades more likely. We analyze the impact of this ?downward momentum? on credit portfolio risk. Using S&P ratings from 1996 to 2005, we estimate a transition matrix that is insensitive to and a second matrix that is sensitive to previous...

Persistent link: https://www.econbiz.de/10010295953

Securitization and moral hazard: Evidence from a lender cutoff rule

Bubb, Ryan; Kaufman, Alex - 2009

perapplicant fixed costs in screening. We then demonstrate that our theory fits the data better than the main alternative theory … already in the literature, which supposes cutoff rules are exogenously used by securitizers. Furthermore, we use our theory to …

Persistent link: https://www.econbiz.de/10010286943

Securitization and moral hazard: Evidence from credit score cutoff rules

Bubb, Ryan; Kaufman, Alex - 2011

research has hypothesized that these cutoff rules result from a securitization rule of thumb. Under this theory, an observed … model that rationalizes such an origination rule of thumb. Under this alternative theory, jumps in default are not evidence … securitization rule-of-thumb theory but consistent with the origination rule-of-thumb theory. There are jumps in the number of loans …

Persistent link: https://www.econbiz.de/10010286944

Two-sided certification: The market for rating agencies

Fasten, Erik R.; Hofmann, Dirk - 2010

Certifiers contribute to the sound functioning of markets by reducing asymmetric information. They, however, have been heavily criticized during the 2008-09 financial crisis. This paper investigates on which side of the market a monopolistic profit-maximizing certifier offers his service. If the...

Persistent link: https://www.econbiz.de/10010270720