Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests: Economics, European Union, Czech Republic, Risk Aversion, Social Science Research Network, and 13 moreExternal Debt, Trade Openness, Sovereign Default Risk, Bond Market, Bond, Openness to experience, Dynamic Panel Data, Eastern European Economics, Current Account Deficit, Error Correction Model, Fiscal Discipline, Sovereign Risk, and Current Account
Research Interests:
Page 221. Chapter 8 Bond and Equity Market Integration Lieven Baele and Annalisa Ferrando Introduction This chapter examines the integration process of the different euro area bond and equity markets. Both markets have ...
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Small and medium-sized enterprises (SMEs) have a central role in the European economy, accounting for more than 99.8 percent of all euro area nonfinancial firms, employed 86.8 million people (two-thirds of euro area workforce), and... more
Small and medium-sized enterprises (SMEs) have a central role in the European economy, accounting for more than 99.8 percent of all euro area nonfinancial firms, employed 86.8 million people (two-thirds of euro area workforce), and generated about 57.7 percent of value added (European Investment Fund 2014).
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
The present paper provides in-depth analysis of SME access to capital markets among Eurozone countries. First, we detect the factors - at the firm and country level - that are able to influence the likelihood of SME access to market-based... more
The present paper provides in-depth analysis of SME access to capital markets among Eurozone countries. First, we detect the factors - at the firm and country level - that are able to influence the likelihood of SME access to market-based finance. Second, we construct an index of what we call "market suitability",, i.e., a score that can be measured at the dimensional, sectoral and national level, which provides the percentage of firms potentially fit for market-based finance. Our results highlight that a few Eurozone countries seem to have deployed the "potential" for capital market financing, while there exists a large percentage of unexploited potential for firms fit for market-based finance. It should also be highlighted that overall business conditions - measured by GDP growth, the degree of development of domestic financial markets, and the quality of the legal and judicial enforcement system - greatly influence a firm's market suitability. In the period under consideration (2000-2014), macro factors tended to reduce the likelihood of SME access to market-based finance in most countries in our sample
Research Interests:
Research Interests:
Research Interests:
Research Interests:
ABSTRACT This paper investigates the impact of the interaction between product, labor and financial market imperfections on firms’ investment by using a panel data of European firms over the period 1994-2008. It studies the impact of... more
ABSTRACT This paper investigates the impact of the interaction between product, labor and financial market imperfections on firms’ investment by using a panel data of European firms over the period 1994-2008. It studies the impact of product and labor market regulations on firm investment and how it changes with the degree of financial market imperfections. Findings show that product and labor market regulations negatively affect firm investment by lowering firm profitability. The presence of more efficient financial markets increases firm investment and lowers the negative effects of market regulations.
Research Interests:
Research Interests:
We investigate the impact of banks’ capability to recover a loan on firms’ propensity to apply for credit and on banks’ propensity to lend, looking at firms from eleven European countries. Our findings suggest that banks’ recovery rates... more
We investigate the impact of banks’ capability to recover a loan on firms’ propensity to apply for credit and on banks’ propensity to lend, looking at firms from eleven European countries. Our findings suggest that banks’ recovery rates negatively affect firms’ decisions to apply for credit but not banks’ decision to provide credit. We also find that the role of recovery rates differs in economically weak and strong contexts: high recovery rates discourage borrowers only in economically strong countries and have a positive impact on banks’ lending decisions in economically weak countries.
Research Interests:
Research Interests:
Research Interests:
ABSTRACT In this paper, we present a set of specific measures to quantify the state and evolution of financial integration in the euro area. Five key markets are considered, namely the money, corporate bond, government bond, credit and... more
ABSTRACT In this paper, we present a set of specific measures to quantify the state and evolution of financial integration in the euro area. Five key markets are considered, namely the money, corporate bond, government bond, credit and equity markets. Building upon the law of one price, we developed two types of indicators that can be broadly categorised as price-based and news-based measures. We complemented these measures by a number of quantity-based indicators, mainly related to the evolution of the home bias. Results indicate that the unsecured money market is fully integrated, while integration is reasonably high in the government and corporate bond market, as well as in the equity markets. The credit market is among the least integrated, especially in the short-term segment.
Research Interests:
Research Interests:
Research Interests:
Research Interests: Economics, Sovereignty, European Union, Czech Republic, Risk Aversion, and 13 moreExternal Debt, Trade Openness, Sovereign Default Risk, Bond, Dynamic Panel Data, Eastern European Economics, Current Account Deficit, Error Correction Model, Fiscal Discipline, Member States, Sovereign Risk, Current Account, and Dynamic Panel
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Firms’ access to capital markets among Eurozone countries is a challenging issue for the EU Capital Markets Union (CMU) agenda. We contribute to the current debate on the CMU by identifying the characteristics of firms that can be deemed... more
Firms’ access to capital markets among Eurozone countries is a challenging issue for the EU Capital Markets Union (CMU) agenda. We contribute to the current debate on the CMU by identifying the characteristics of firms that can be deemed ‘suitable’ for market-based finance. Using survey-based research, we show which firm-specific attributes and country-specific features foster a firm’s likelihood of accessing non-bank sources of finance. Our results reveal that a few Eurozone countries appear to have achieved high access to capital market financing, but there is substantial unexploited potential among firms fit for market-based finance. Our research also indicates that the macro business environment and conditions—such as GDP growth, the degree of development of domestic financial markets, and the quality of the legal and judicial enforcement system—significantly impact firms’ market suitability. Our results therefore can be linked to a number of goals of the CMU Action Plan.