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Firms’ Bond Market Access and Impact on Bank Borrowing Costs Journal of Financial Services Research (IF 1.491) Pub Date : 2024-03-12
Abstract This paper documents that companies with bond issuance are larger, are more leveraged, and have higher financing needs, but have lower observed syndicated loan spreads. Using endogenous treatment and outcome estimations, we find that companies would potentially face an average of 114 to 185 basis points (bps) higher loan spreads in counterfactual absence of bond market access, significantly
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Enterprise Risk Management, Risk-Taking, and Macroeconomic Implications: Evidence from Bank Mortgage Loan Management Journal of Financial Services Research (IF 1.491) Pub Date : 2024-01-31 Shiang Liu, Jianren Xu
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What Triggers Consumer Adoption of Central Bank Digital Currency? Journal of Financial Services Research (IF 1.491) Pub Date : 2023-11-28 Michiel Bijlsma, Carin van der Cruijsen, Nicole Jonker, Jelmer Reijerink
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Investing in Your Alumni: Endowments’ Investment Choices in Private Equity Journal of Financial Services Research (IF 1.491) Pub Date : 2023-11-21 Roland Füss, Stefan Morkoetter, Maria Oliveira
We investigate the role of alumni ties in university endowments’ decision to invest into private equity funds. Based on a sample of 1,590 commitments made by 189 U.S. endowments into 613 funds during the period of 1995 to 2017, we show that endowments are more likely to invest into funds that are managed by the alumni of their own alma mater. This finding is more pronounced for less prestigious and
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Do Co-opted Boards Affect the Financial Performance of Insurance Firms? Journal of Financial Services Research (IF 1.491) Pub Date : 2023-09-13 Michael Adams, Zafeira Kastrinaki
We examine the performance-effects of Chief Executive Officer (CEO) co-opted boards in United Kingdom (UK) property-casualty insurers. We report that board insiders appointed in the aftermath of CEO succession reduce profitability, but bolster solvency. Enhanced solvency also results when the CEO is a financial expert and when proportionately more inside directors are selected by a CEO who is a financial
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Window Dressing and the Designation of Global Systemically Important Banks Journal of Financial Services Research (IF 1.491) Pub Date : 2023-09-07 Luis Garcia, Ulf Lewrick, Taja Sečnik
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Competition and Innovation in the Financial Sector: Evidence from the Rise of FinTech Start-ups Journal of Financial Services Research (IF 1.491) Pub Date : 2023-08-10 Doina Caragea, Theodor Cojoianu, Mihai Dobri, Andreas Hoepner, Oana Peia, Davide Romelli
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Interest Received by Banks during the Financial Crisis: LIBOR vs Hypothetical SOFR Loans Journal of Financial Services Research (IF 1.491) Pub Date : 2023-07-27 Urban Jermann
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Multinational Lending Retrenchment after the Global Financial Crisis: The Impact of Policy Interventions Journal of Financial Services Research (IF 1.491) Pub Date : 2023-07-18 Miriam Goetz
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Running Out of Bank Runs Journal of Financial Services Research (IF 1.491) Pub Date : 2023-07-16 Jan Libich, Dat Thanh Nguyen, Hubert Janos Kiss
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Bank Information and Firm Growth: Microeconomic Evidence from the US Credit Market Journal of Financial Services Research (IF 1.491) Pub Date : 2023-06-21 Hans Degryse, Sotirios Kokas, Raoul Minetti, Valentina Peruzzi
We examine the effect of bank information on the growth of borrowing firms by using matched bank-firm data from the US credit market. Exploiting the structure of lending syndicates to construct proxies for banks’ information acquisition, we find consistent evidence that bank monitoring spurs firms’ investments in tangible and intangible assets, promoting higher growth. Conversely, little evidence exists
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No Reason to Worry About German Mortgages? An Analysis of Macroeconomic and Individual Drivers of Credit Risk Journal of Financial Services Research (IF 1.491) Pub Date : 2023-06-07 Nataliya Barasinska, Philipp Haenle, Anne Koban, Alexander Schmidt
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Gender and Professional Networks on Bank Boards Journal of Financial Services Research (IF 1.491) Pub Date : 2023-05-23 Ann L. Owen, Judit Temesvary, Andrew Wei
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Do pension funds provide financial stability? Evidence from European Union countries Journal of Financial Services Research (IF 1.491) Pub Date : 2023-04-11 Seda Peksevim, Metin Ercan
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Managerial Beliefs and Banking Behavior Journal of Financial Services Research (IF 1.491) Pub Date : 2023-04-05 Damiano B. Silipo, Giovanni Verga, Sviatlana Hlebik
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The Procyclicality of Impairment Accounting: Comparing Expected Losses Under IFRS 9 and US GAAP Journal of Financial Services Research (IF 1.491) Pub Date : 2023-03-29 Alejandro Buesa, Javier Población, Javier Tarancón
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Government Guarantees and Banks’ Income Smoothing Journal of Financial Services Research (IF 1.491) Pub Date : 2023-03-21 Manuela M. Dantas, Kenneth J. Merkley, Felipe B. G. Silva
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Does IRS Monitoring Matter for the Cost of Bank Loans? Journal of Financial Services Research (IF 1.491) Pub Date : 2023-03-15 Theodora Bermpei, Antonios Nikolaos Kalyvas, Simon Wolfe
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An analysis of the potential impact of heightened capital requirements on banks’ cost of capital Journal of Financial Services Research (IF 1.491) Pub Date : 2023-03-01 Tomas Mantecon, Adel Almomen, He Ren, Yi Zheng
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The Impact of Policy Interventions on Systemic Risk across Banks Journal of Financial Services Research (IF 1.491) Pub Date : 2023-02-22 Simona Nistor, Steven Ongena
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Structural Drivers of Credit Rating Uncertainty: An Examination of the Changes Imposed by Dodd-Frank Journal of Financial Services Research (IF 1.491) Pub Date : 2023-02-13 Jun Duanmu, Garrett A. McBrayer
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Finance, Growth, and Fragility Journal of Financial Services Research (IF 1.491) Pub Date : 2023-02-13 Panicos O. Demetriades, Johan M. Rewilak, Peter L. Rousseau
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The Covid pandemic in the market: infected, immune and cured bonds Journal of Financial Services Research (IF 1.491) Pub Date : 2023-01-16 Andrea Zaghini
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Shareholder Litigation Rights and Bank Dividends Journal of Financial Services Research (IF 1.491) Pub Date : 2023-01-14 Hiep Ngoc Luu, Tram-Anh Nguyen, Dung Thi Thuy Nguyen, Lan Thi Mai Nguyen, Edie Johari
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Banks and FinTech Acquisitions Journal of Financial Services Research (IF 1.491) Pub Date : 2023-01-11 Kyung Yoon Kwon, Philip Molyneux, Livia Pancotto, Alessio Reghezza
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Multimarket Banks, Local Economic Shocks, and Lending Behavior: When the Effect is on Cost but not on the Amount of Deposit Fundings Journal of Financial Services Research (IF 1.491) Pub Date : 2022-12-31 Davide Castellani, Elisa Giaretta
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Low Interest Rates and Banks’ Interest Margins: Does Deposit Market Concentration Matter? Journal of Financial Services Research (IF 1.491) Pub Date : 2022-12-27 Nimrod Segev, Sigal Ribon, Michael Kahn, Jakob de Haan
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Interest Rate Competition among C Banks, S Banks, and Credit Unions Journal of Financial Services Research (IF 1.491) Pub Date : 2022-10-26 Edward R. Lawrence, Ca Nguyen, Alejandro Pacheco
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Vertical Differentiation, Risk-Taking and Retail Funding Journal of Financial Services Research (IF 1.491) Pub Date : 2022-10-21 David Jaume, Martin Tobal, Renato Yslas
Results of previous studies of the relationship between bank competition and bank risk-taking have differed in findings but most have used the same sort of barriers to perfect competition, such as entry barriers and differences in bank default risk. This study suggests that banks that compete more effectively in the deposit market using nonprice features such as differences in services and advertising
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Option-Implied Skewness and the Value of Financial Intermediaries Journal of Financial Services Research (IF 1.491) Pub Date : 2022-10-20 Silvia Bressan, Alex Weissensteiner
In this paper, we analyze the relationship among skewness, value, and stock returns for US financial intermediaries. Further, we compare skewness based on past returns to risk-neutral skewness based on options. We find that the option-implied skewness has a significantly higher explanatory power. In line with the strand of literature on investors exploiting mispriced stocks through option trading,
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Access to Credit in a Market Downturn Journal of Financial Services Research (IF 1.491) Pub Date : 2022-10-18 Barbara Casu, Laura Chiaramonte, Ettore Croci, Stefano Filomeni
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Systemic Risk: Bank Characteristics Matter Journal of Financial Services Research (IF 1.491) Pub Date : 2022-09-03 Sharif Mazumder, Louis R. Piccotti
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Dynamic Pricing of Credit Cards and the Effects of Regulation Journal of Financial Services Research (IF 1.491) Pub Date : 2022-08-06 Suting Hong, Robert M. Hunt, Konstantinos Serfes
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Consumer Willingness to Share Payments Data: Trust for Sale? Journal of Financial Services Research (IF 1.491) Pub Date : 2022-05-21 Michiel Bijlsma, Carin van der Cruijsen, Nicole Jonker
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Consumer Demand for Credit Card Services Journal of Financial Services Research (IF 1.491) Pub Date : 2022-04-25 Daniel Grodzicki, Alexei Alexandrov, Özlem Bedre-Defolie, Sergei Koulayev
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Correction to: Bank Risk and Firm Investment: Evidence from Firm-Level Data Journal of Financial Services Research (IF 1.491) Pub Date : 2022-04-19 A. Shamshur,L. Weill
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US National Banks and Local Economic Fragility Journal of Financial Services Research (IF 1.491) Pub Date : 2022-04-13 Giovanni Calice, Yong Kyu Gam
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Investor Diversity and Liquidity in The Secondary Loan Market Journal of Financial Services Research (IF 1.491) Pub Date : 2022-04-07 João A. C. Santos, Pei Shao
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Effects of Macroprudential Policies on Bank Lending and Credit Risks Journal of Financial Services Research (IF 1.491) Pub Date : 2022-03-24 Stefanie Behncke
I analyse the effects of two macroprudential policy measures implemented in Switzerland: the activation of the countercyclical capital buffer (CCyB) and a cap on the loan-to-value (LTV) ratios. I use a difference-in-differences method to estimate the effects of these measures on risk indicators, such as their LTV and loan-to-income (LTI) ratios and mortgage growth rates. I find that both the CCyB and
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Bank Consolidation and Systemic Risk: M&A During the 2008 Financial Crisis Journal of Financial Services Research (IF 1.491) Pub Date : 2022-03-10 Gregory D. Maslak, Gonca Senel
In this paper, we analyze the relationship between US bank consolidation and systemic risk before, during, and after the 2008 financial crisis. We find that mergers during the crisis decreased market-adjusted systemic risk. This effect was more pronounced for mergers with smaller acquirers of larger targets. Meanwhile, mergers of larger banks increased the aggregate systemic risk. In the years following
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Bank Risk and Firm Investment: Evidence from Firm-Level Data Journal of Financial Services Research (IF 1.491) Pub Date : 2022-03-05 Anastasiya Shamshur, Laurent Weill
Is higher bank risk-taking associated with more firm investment? Combining firm- and bank-level data, we examine the relation between bank risk and firm investment in a large sample of firms from nine European countries. We find that bank risk is positively associated with firm investment. Our finding accords with the modern theory of financial intermediation: risk taking by banks enhances firm investment
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How much do Investors Rely on Credit Ratings: Empirical evidence from the U.S. and E.U. CLO primary market Journal of Financial Services Research (IF 1.491) Pub Date : 2022-03-01 Frank Fabozzi, Vivian M. van Breemen, Dennis Vink, Mike Nawas, Austin Gengos
We investigate the extent to which investors rely on credit ratings and other factors beyond credit ratings in determining the funding cost for collateralized loan obligations (CLOs) tranches in the period 1997-2015. We find significant differences between the United States (U.S.) and European Union (E.U.) markets. In the U.S., we find a much higher and more consistent degree of reliance on credit
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Bank Market Power and Access to Credit: Bank-Firm Level Evidence From the Euro Area Journal of Financial Services Research (IF 1.491) Pub Date : 2022-01-31 Pietro Grandi, Caroline Ninou Bozou
We test how bank market power affects firms’ access to credit using a bank-firm database on five European countries. Results indicate that firms served by high-market power banks obtain less credit, rely more on trade credit and face higher funding costs relative to other firms. Furthermore, the effect of bank market power is nonlinear and heterogeneous across firms. First, the effect of market power
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Banks’ Net Interest Income from Maturity Transformation and Other Interest Income: Communicating Vessels? Journal of Financial Services Research (IF 1.491) Pub Date : 2022-01-30 Raymond F. D. D. Chaudron, Leo de Haan, Marco Hoeberichts
This study investigates the effects of a flattening of the yield curve and decreasing interest rates on the net interest margin (NIM) of 41 Dutch banks during the period 2008Q1 to 2020Q4. Our contribution to the literature is that we distinguish explicitly between net interest income from pure maturity transformation and a residual part representing market power, compensation for risks and other mark-ups
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Micro-Prudential Regulation and Loan Monitoring Journal of Financial Services Research (IF 1.491) Pub Date : 2022-01-24 Instefjord, Norvald, Nakata, Hiroyuki
We evaluate the value of loan monitoring systems for a bank controlled by a micro-prudential regulator. We investigate dynamic systems (an information channel that generates information flow about quality) and static systems (where the lender receives a single signal about loan quality). We find that dynamic systems carry a regulatory charge that dominates the benefit of the systems and are therefore
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Implications for Bank Risk when Directors are Related to Minority Shareholders Journal of Financial Services Research (IF 1.491) Pub Date : 2022-01-21 Barry, Thierno Amadou, Lepetit, Laetitia, Strobel, Frank, Tran, Thu Ha
We examine whether directors on a board who are related to minority shareholders have an effect on bank risk. We use a panel of European banks with a controlling shareholder over the period from 2003 to 2017 and find that these directors result in lower risk. Our results depend crucially on whether or not such directors have reputational concerns or financial expertise, and the level of shareholder
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Retrospective on Twenty Years of the FDIC-JFSR Bank Research Conference Journal of Financial Services Research (IF 1.491) Pub Date : 2022-01-19 Anderson, Haelim, Carabello, Michael, Kravitz, Troy
The first annual Bank Research Conference was held at the Federal Deposit Insurance Corporation in 2000. The conference has served to disseminate policy-relevant research on issues affecting the banking sector and the stability of the financial system. We evaluate the impact of the conference on policy and research communities, financial regulation, and the banking and finance literature. We examine
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Disrupted Lending Relationship and Borrower's Strategic Default Journal of Financial Services Research (IF 1.491) Pub Date : 2022-01-04 Avramidis, Panagiotis, Asimakopoulos, Ioannis, Malliaropulos, Dimitris
Using a sample of bank loans to firms operating in the Greek tourism sector, and regional variation of tourism activities to identify the strategic defaulted firms, we examine the impact of bank consolidation on the firms’ payment behavior. We show that a merger-induced impairment of the lending relationship is related to a higher likelihood of strategic default by the target bank’s borrowers. In contrast
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Investor Characteristics and their Impact on the Decision to use a Robo-advisor Journal of Financial Services Research (IF 1.491) Pub Date : 2021-12-27 Oehler, Andreas, Horn, Matthias, Wendt, Stefan
We survey 231 undergraduate students to analyze how retail investors’ characteristics influence their decision to use a robo-advisor. Characteristics such as the willingness to take risk, extraversion, and optimism are significant in univariate tests but the willingness to take risk and the internal locus of control are significant in multivariate settings. Participants who use the robo-advisor invest
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Why do Subchapter S Banks Convert to C Banks? Journal of Financial Services Research (IF 1.491) Pub Date : 2021-11-15 Pacheco, Alejandro, Chang, Chun-Hao, Lawrence, Edward R.
The Small Business Job Protection Act of 1996 allows US banks to adopt subchapter S status. Banks use this status to avoid double taxation. However, the Act restricts the number of shareholders for subchapter S banks to 100. Many banks adopt subchapter S and then transition back to C banks. We investigate why Subchapter S banks convert to C banks. We find that when these subchapter S banks are in financial
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Local Banking Market Frictions and Youth Crime: Evidence from Bank Failures Journal of Financial Services Research (IF 1.491) Pub Date : 2021-11-13 Ghosh, Amit, Contreras, Salvador
This paper examines the impact of local banking market frictions measured by bank failures on youth crime. Using a difference-in-differences framework, we find white and black youth violent crimes increase by 0.11 and 0.66 per 1000 people, respectively, following a bank failure. Further, we find white property crime, petty delinquency and drug crime increase by 0.29, 0.75 and 0.35 per 1000 people.
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Exploring the Systemic Risk of Domestic Banks with ΔCoVaR and Elastic-Net Journal of Financial Services Research (IF 1.491) Pub Date : 2021-10-13 Bianchi, Michele Leonardo, Sorrentino, Alberto Maria
We analyze the systemic risk of Italian banks with the ΔCoVaR from a bivariate normal GARCH model. The results show that it is a good measure of systemic risk and is applicable to the ranking of Italian other systemically important institutions. Using an elastic-net approach, we identify the balance sheet and market variables that explain the ΔCoVaR of Italian banks. The analysis confirms that these
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The Importance of Board Risk Oversight in Times of Crisis Journal of Financial Services Research (IF 1.491) Pub Date : 2021-09-29 Dupire, Marion, Haddad, Christian, Slagmulder, Regine
This study investigates the relationship between board risk oversight practices at financial institutions in the EU and systemic risk during the sovereign debt crisis. More specifically, we examine whether European banks and insurance companies that had strong board-level risk oversight in place before the onset of the sovereign debt crisis fared better during the crisis. We construct a risk oversight
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Does Experience of Banking Crises Affect Trust in Banks? Journal of Financial Services Research (IF 1.491) Pub Date : 2021-09-23 Fungáčová, Zuzana, Kerola, Eeva, Weill, Laurent
This paper investigates how past experience with banking crises influences an individual’s trust in banks. We combine data on banking crises for the period 1970–2014 with individual data on trust in banks for 52 countries. We find that experiencing a banking crisis diminishes a person’s trust in banks, and that length of the banking crises is negatively related to trust in banks. An individual’s age
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Real Estate Markets and Lending: Does Local Growth Fuel Risk? Journal of Financial Services Research (IF 1.491) Pub Date : 2021-09-03 Zurek, Maximilian
Real estate price growth affects credit risk for several reasons: it provides input for economic forecasts as it’s closely tied to economic growth; when used as collateral by banks, rising real estate prices may decrease both expected and actual losses; and banks may become less risk averse in lending practices in the presence of rising property prices. Therefore, we analyze these effects on loan portfolios’
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Worker Incentives in the Banking Industry Journal of Financial Services Research (IF 1.491) Pub Date : 2021-09-02 Sahan, Selay, Phimister, Euan
This study shows that monetary incentives together with performance disclosures lead to significant increases in effort and productivity in the multi-branch banking industry. Our results are based on an incentivized credit card campaign run by a commercial bank in which employees were paid a piece-rate if they sold a credit card to a customer. Later in the campaign, the head office started to provide
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Fintech, Credit Market Competition, and Bank Asset Quality Journal of Financial Services Research (IF 1.491) Pub Date : 2021-08-23 Tseng, Ping-Lun, Guo, Wen-Chung
This study explores bank screening incentives under credit market competition between traditional banks and a Fintech startup. The bank screening incentives increase with the cost of the Fintech startup’s screening technology, decrease with the performance of that technology, and increase with the cost of entrepreneurs’ conveying information to the Fintech startup. However, when the preparation cost
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What Makes Firms Dissatisfied with Their Bank Loans: New Evidence from Survey Data Journal of Financial Services Research (IF 1.491) Pub Date : 2021-08-13 Kolev, Atanas, Maurin, Laurent, Segol, Matthieu
We use loan-by-loan association between non-financial firms and their banks to disentangle the effects of financial weakness of borrowers and lenders on the satisfaction with the loan contracted. We construct indices measuring the financial weakness of borrowers and lenders. We find evidence of both demand and supply factors determining firm satisfaction with bank loan financing, especially regarding
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Market Structure and Financial Stability: the Interaction between Profit-Oriented and Mutual Cooperative Banks in Italy Journal of Financial Services Research (IF 1.491) Pub Date : 2021-07-27 Amendola, Adalgiso, Barra, Cristian, Boccia, Marinella, Papaccio, Anna
In this study, we analyze the relation between market structure and financial stability both theoretically and empirically by considering two types of agents: profit-oriented banks and mutual cooperative banks in the context of Italy. The main findings show that under the condition that mutual cooperative banks are not dominated by borrowers, there is an inverted U-shaped relation in which a less concentrated
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The Dark Road to Credit Applications: The Small-Business Case of Mexico Journal of Financial Services Research (IF 1.491) Pub Date : 2021-07-26 Fausto Hernández-Trillo, Ana Laura Martínez-Gutiérrez
In this study, we argue that racial discrimination exists in the credit markets in Latin American countries, particularly in Mexico, despite the subject of ethnicity being taboo. We have designed and conducted an experiment to verify the existence of racial discrimination in the access to the credit market in Mexico. In particular, because of the nature of the experiment, we have concentrated on the