This paper introduces the “Excessive Liquidity Creation Hypothesis,” whereby a rise in a bank's core liquidity creation activity increases its probability of failure. Russia experienced many bank failures over the past decade, making it an ideal natural field experiment for testing this...

We use an original identification strategy to isolate a potential religious bias in traders’ behavior. We analyze the stock market reaction to sukuk issuance during Ramadan. We then isolate the religious component of the trades by comparing the stock market reaction to sukuk and bond issuance...

The aim of this work is to provide empirical elements on the performance of consumer credit companies in the European Union by applying efficiency frontier techniques. These techniques, widely applied in banking literature, provide sophisticated measures of performance – the efficiency scores....

This paper aims to provide new empirical evidence on a major corporate governance issue: the relationship between leverage and corporate performance. We propose two major findings to this literature by applying frontier efficiency techniques to measure performance of firms from seven European...

This paper tackles the question of knowing whether collateral helps solve adverse selection problems in transition countries. We use a unique dataset of about 400 bank loans from 16 transition countries. Our findings support the view of a positive link between the presence of collateral and the...

A large number of bank failures took place in transition countries during the 90s and at the beginning of the 2000s, which were related to increases in non-performing loans and deteriorated cost efficiency of banks. This paper addresses the question of the causality between non-performing loans...

The article from Muhammad Nejatullah Siddiqi is of utmost interest for the understanding of Islamic economics and its limits until now. It has the major benefit of giving the right perspective and being realistic about the current state of Islamic economics. It also provides directions to...

The last decade has witnessed rapid expansion of Islamic financial instruments, notably with the proliferation of Islamic investment certificates called Sukuk. Sukuk generally represent the Islamic financial instrument equivalent to conventional bonds. We evaluate the economic differences...