Even in large equity markets, the dividend-price ratio is significantly related with the growth of future dividends. In order to uncover this relationship, we use monthly dividends and a mixed data sampling technique which allows us to cope with within-year seasonality. We reduce the effect of...

This paper examines the role of cross credit rating changes on corporate cash holdings policies, focusing on the "big three" credit rating agencies (Standard and Poor's, Fitch and Moody's). Using a hand collected sample of credit ratings for firms listed at the S&P500 we initially verify the...

We assess the role of banks to the transmission of fiscal policy reforms to the economy. We built-up a dynamic stochastic general equilibrium model with heterogeneous agents, banks and government. We find that banks mitigate the negative spillover effects to the economy from higher taxes....

Examining a sample of 87,288 firm-year observations between 1969 and 2003, we find that firms slow the speed of adjustment toward their optimal cash holdings following the state’s adoption of labor protection laws. This effect is more pronounced for firms subjected to financial...

We model the bank loan negotiation process as a bargaining game interaction between two individuals (the firm applicant and the bank officer). The novelty of our model lies in that the relative outcome of the players (as measured by the spread) is affected by different behavioral and situational...

This paper analyses the effects on private consumption from an increase in productive and unproductive public spending. A new-Keynesian model incorporating price and wage rigidities, monetary policy and various fiscal rules is developed and estimated, using Bayesian techniques, to capture the...

Given the increased importance of fiscal monitoring, this study amends the existing literature in the field of intra-annual fi scal data in two main dimensions. First, we use quarterly fi scal data to forecast a very disaggregated set of fiscal series at annual frequency. This makes the analysis...