Search Results - subject_exact:"Liquidity"

Market transparency and dealer behavior : lessons from MiFID II/MiFIR transparency requirements

Lindner, Vincent; Lucke, Konrad; Pelizzon, Loriana - 2026

This policy paper examines the effects of the introduction of the MiFID II / MiFIR framework on the transparency regime for sovereign bonds. The main purpose of the framework is to provide markets with real-time information and lower market asymmetries, thereby increasing liquidity in the...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015617983

Intraday price pressure and order flow around U.S. Treasury auctions

Fleming, Michael J.; Liu, Weiling; Nguyen, Giang H. - 2026

Using 33 years of intraday Treasury data, we provide the first high-frequency evidence on auction-day price pressure: yields rise in the hours before auction and reverse afterward. This pressure strengthens when dealers face tighter risk-bearing constraints and weakens when investor demand is...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015618080

The Financial Lobster Bias

Reyes Marín, Óscar De los; Paz Gil, Iria; … - 2026

The Financial Lobster Bias describes how SMEs, driven by distorted liquidity perceptions, engage in aggressive expansion until financial breakdown occurs. Using data from 10,412 Spanish SMEs (2000-2024), this study shows that liquidity misperception-measured through two versions of the Liquidity...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015591400

Bank failures : the roles of solvency and liquidity

Correia, Sergio; Luck, Stephan; Verner, Emil - 2026

Bank failures can stem from runs on otherwise solvent banks or from losses that render banks insolvent, regardless of withdrawals. Disentangling the relative importance of liquidity and solvency in explaining bank failures is central to understanding financial crises and designing effective...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015604668

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Bank failures: the roles of solvency and liquidity

Correia, Sergio; Luck, Stephan; Verner, Emil - 2026

Book / Working Paper

Liquidity, leverage and financial performance nexus : insights from sub-Saharan Africa's healthcare sector

Dangs, Ayuba Zakka; Ojeka, Stephen Aanu; Uthman, Ahmad … - 2026

This study investigates how liquidity and leverage shape financial performance in sub-Saharan Africa's listed healthcare firms and concludes that internal liquidity capacity is a more reliable driver of performance than debt. Using an ex post facto design, the study examines 60 firm year...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015643324

What drives mortgage default in Europe? : the role of liquidity, equity and debt enforcement

Lindner, Peter; Riedl, Aleksandra - 2026

Using harmonized household data from 18 European countries, this paper studies what triggers mortgage default. We distinguish between liquidity stress, negative equity, and the double trigger, where both occur simultaneously. We find that all three increase default risk, but the double trigger...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015650650

The effects of technology and liquidity on bank capital structure

Mabandla, Ndonwabile Zimasa - 2026

This research enhances the literature on bank capital structure by combining financial intermediation theory with technological innovation to analyse the impact of FinTech adoption and liquidity management on leverage choices in South African banks. Utilising panel data spanning 2015 to 2024 and...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015652196

Do credit and liquidity risks interact to shape bank stability? : evidence from an emerging banking system

Atari, Sana'; Bin Saddig, Ruaa; Awwad, Bahaa Sobhi Abde … - 2026

This paper examines whether the interaction between credit risk and liquidity conditions helps explain bank stability in a fragile and institutionally constrained banking environment. Using an annual panel of 13 Palestinian banks over 2011-2024 and measuring stability by the (log) Z-score, we...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015652373

Stayin' alive : debt complexity as a bankruptcy-delaying mechanism

Forssbæck, Jens; Jankensgård, Håkan; Moursli, Reda - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015440941

Is liquidity provision informative? : evidence from agricultural futures markets

Ma, Richie R.; Serra, Teresa - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015166730

U.S. Treasury market functioning from the GFC to the pandemic

Adrian, Tobias; Fleming, Michael J.; Nikolaou, Kleopatra - 2025

This article examines U.S. Treasury securities market functioning from the global financial crisis (GFC) through the Covid-19 pandemic given the ensuing market developments and associated policy responses. We describe the factors that have affected intermediaries, including regulatory changes,...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015372069

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US treasury market functioning from the GFC to the pandemic

Adrian, Tobias; Fleming, Michael J.; Nikolaou, Kleopatra - 2025

Book / Working Paper

The economics of liquid staking derivatives : basis determinants and price discovery

Scharnowski, Stefan; Jahanshahloo, Hossein - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015376393

Strategic trading with uncertain market depth

Lou, Youcheng; Park, Junghum - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015339322

Liquidity and the strategic value of information

Kadan, Ohad; Manela, Asaf - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015357632

Large orders in small markets : execution with endogenous liquidity supply

Capponi, Agostino; Menkveld, Albert J.; Zhang, Hongzhong - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015357640

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Large orders in small markets : execution with endogenous liquidity supply

Capponi, Agostino; Menkveld, Albert J.; Zhang, Hongzhong - 2023

Book / Working Paper

Why gradual and predictable? : bank lending during the sharpest quantitative tightening ever

Burlon, Lorenzo; Ferrari, Alessandro; Kho, Stephen; … - 2025

Exploiting the recalibration of ECB's outstanding central bank funding in 2022, we show that a sharp reabsorption of bank liquidity induces a tightening impact on credit supply, as intended when central banks reduce their balance sheets. The tightening originates from the sudden relative...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015179820

Bank economic capital

Hirtle, Beverly J.; Plosser, Matthew C. - 2025

Conventional measures of bank solvency fail to account for the unique liquidity risks posed by deposits. Using public regulatory data, we develop a novel measure, economic capital, that jointly quantifies the impact of credit, liquidity, and market risk on bank solvency. We validate that...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015329950

Unlocking liquidity : the role of market makers in Kuwait's emerging market

Alsabah, Khaled; Al-Thaqeb, Saud Asaad - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015416958

How does asset market liquidity affect the real economy? : a quantitative assessment of the transmission channels

Gabrovski, Miroslav; Geromichalos, Athanasios; … - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015420758

Liquidity and price informativeness of options : evidence from extended trading hours

Mu, Liangyi; Gozluklu, Arie E. - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015465745

The relationship between market depth and liquidity fragility in the treasury market

Meldrum, Andrew; Sokolinskiy, Oleg - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015406653

Trading costs v. indicative liquidity in the off-the-run treasury market

Sokolinskiy, Oleg - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015438381

System-wide financial stress testing in Luxembourg

Fique, José; Jin, Xisong - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015457503

Effects of liquidity on TE and performance of Japanese ETFs

Naka, Atsuyuki; Tian, Jiayuan; Shin, Seungho - 2025

This study identifies a nonlinear relationship among liquidity, tracking error, and risk-adjusted performance in JETFs. Collecting daily data for 1077 JETFs from January 2008 to April 2022, we find a concave association, whereby both highly liquid and highly illiquid JETFs exhibit lower...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015462901

Market behaviors around bankruptcy and frozen funds withdrawal : trading stranded assets on FTX

Galati, Luca; Webb, Alexander; Webb, Robert I. - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015562172

Analysis of the investment potential of the stock market and its impact on the banking system

Gazaliyeva, Aigerim; Sembekov, Amir; Kolchin, Sergey; … - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015612400

The effect of instant payments on the banking system

Gonzalez, Rodrigo Barbone; Ma, Yiming; Zeng, Yao - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015597168

A study on the interaction of capital, liquidity and bank stability

Población García, Javier; Suárez, Nuria - 2025

The purpose of this paper is to empirically examine the effects of capital and liquidity on bank stability as well as the existence of a potential complementary or substitute relationship between both dimensions to explain bank stability. We use a sample of 16,061 banks from 27 countries during...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015578339

So oddly calm : democratization and stock market liquidity in interwar Spain, 1914-1936

Battilossi, Stefano; Houpt, Stefan Oliver - 2025

We study the effect of democratization on stock market liquidity across Spanish political regimes between 1914 and 1936. We use press news related to mass mobilization in favor of political and redistributive reforms to build a monthly index of political uncertainty, and test its impact on...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015605370

Factors that influence the liquidity : profitability relationship in companies listed on the WSE

Bolek, Monika - 2025

This article examines the relationship between financial liquidity and profitability among non-financial companies listed on the Warsaw Stock Exchange (WSE), exploring the factors that influence this dependence, such as net working capital strategy, sales volume, and asset levels. To achieve...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015625873

The speed premium: high-frequency trading and the cost of capital

Aquilina, Matteo; Ibikunle, Gbenga; Rzayev, Khaladdin; … - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015476820

Central bank interventions and asset market liquidity

Geromichalos, Athanasios; Jung, Kuk Mo; Kospentaris, Ioannis - 2025 - First version: August 2025

Central banks around the world routinely engage in asset purchases in secondary markets as part of implementing monetary policy or enhancing market liquidity, but the effects of such interventions are not yet fully understood. We develop a multi-asset general equilibrium model in which the...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015482582

Inhibitory effect of corporate bond default risk on bank liquidity creation

Zhu, Yunlu; Ren, Yuheng; Zeng, Linshan; Chen, Xiaowei - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015414658

Assessing market liquidity amidst crisis : evidence from indian stock market

Sidharth.J - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015414693

Liquidity and trading dynamics in the off-the-run U.S. Treasury market

Chaboud, Alain; Golay, Ellen Correia; Fleming, Michael J.; … - 2025

In this article, we study trading activity and liquidity of off-the-run U.S. Treasury securities. Off-the-run Treasuries are seasoned securities, account for about 98 percent of all Treasuries outstanding, and played a central role in the pandemic-fueled dash-for-cash in March 2020....

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015532985

When foreign rates matter more : domestic investor responses in a small open economy

Hodula, Martin; Malovaná, Simona - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015561204

The lower the better? : revisiting minimum tick size

Mestel, Roland; Theissen, Erik; Uhlenkamp, Corinna - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015508782

Asset pricing and the Covid-19 deposit glut : an application of liquidity preference theory

Bezemer, Dirk Johan; Senner, Richard - 2025

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015401070

Renegotiable debt, liquidity injections and financial instability

Doh, Hyun Soo; Feng, Guanhao - 2024

This paper develops a debt-run model to study the effects of liquidity injections on debt markets in the presence of a renegotiation option. In the model, creditors decide when to withdraw their funding and equityholders can renegotiate the contract terms of debt. We show that when equityholders...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015055030

Liquid equity and boom-bust dynamics

Buggenum, Hugo van - 2024

I develop and analyze a monetary model with liquid equity. Equity is a claim on the profits of firms acting as sellers in the search-and-matching market. Buyers in that market devote search to obtain matches with firms, and use the equity to relax a liquidity constraint. The dual nature of...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10014633356

A map of the euro area financial system

Andersen, Isabel; Sánchez Serrano, Antonio - 2024

We present a methodology based on quarterly sectoral accounts to build a map of the euro area financial system. The map can be used to visualise existing cross-sectoral interconnections and exposures, to analyse how the main bilateral positions have evolved over time, and to understand how past...

Persistent link: https://www.econbiz.de, ebvufind01.dmz1.zbw.eu/10015071038