... Gregory Brown, Luca Erzegovesi, Michael Faulkender, Chris Geczy, John Graham, Robin Greenwood... more ... Gregory Brown, Luca Erzegovesi, Michael Faulkender, Chris Geczy, John Graham, Robin Greenwood, Terry Odean, Loriana Pelizzon, Alberto Pozzolo, Manju Puri, Pascal St-Amour, Olivier Scaillet, Enrique Schroth, Norman Schuerhoff, René Stulz, Jeff Wurgler, and conference ...
Firms undertaking innovative activities typically hold a larger share of immaterial assets and ha... more Firms undertaking innovative activities typically hold a larger share of immaterial assets and have a different capital structure. Differences in the propensity to innovate are likely to translate in different TFP levels. We use data on a panel of firms to study the relationship between firms' capital structure and TFP. We identify variations in financial structure induced by factors that do not directly affect the share of intangibles and test whether these exogen-ous variations affect productivity. We document a negative relationship between leverage and productivity, consistently with theories of financial structure based on bankruptcy costs, control rights and equityholders-debtholders' conflicts.
This paper investigates the determinants of the pattern of banks' foreign investment. We exte... more This paper investigates the determinants of the pattern of banks' foreign investment. We extended previous analyses in three directions. First, we use a unique database that includes information on 260 large banks from OECD countries and all their foreign branches and subsidiaries in each one of the other OECD countries. Second, we consider explicitly the role of institutional and regulatory
This paper investigates what factors might help explain the internationalization strategy of bank... more This paper investigates what factors might help explain the internationalization strategy of banks and insurance companies, by comparing the determinants of cross-border M&As in the two sectors in a unified framework. The empirical analysis shows that between 1990 and 2003 the internationalization of banks and insurance companies followed similar patterns. Distance and economic and cultural integration are important determinants for
This paper presents some new evidence on the conflict of interest that may arise when banks under... more This paper presents some new evidence on the conflict of interest that may arise when banks underwrite corporate securities and sell them to their customers. Two alternative views are confronted; a) that commercial banks possess private information on the financial condition of their clients and so perform better screening (the certification hypothesis); and b) that commercial banks might convert loans
This paper investigates the relationship between exchange rate fluctuations and the investment de... more This paper investigates the relationship between exchange rate fluctuations and the investment decisions of a sample of Italian manufacturing firms. The results support the view that a depreciation of the exchange rate has a positive effect on investment through the revenue channel, and a negative effect through the cost channel.
This paper provides a direct test of banks' ability to mitigate informational asymmetries. In... more This paper provides a direct test of banks' ability to mitigate informational asymmetries. In syndicated loans, lenders' incentive to screen borrowers ex ante and to monitor them ex post increases with the share they retain; consequently, the higher this share, the less risky the loan should be considered by investors, and the lower should be the interest rate they require.
This paper draws comparisons between the articles collected in a recent volume edited by Pecchi a... more This paper draws comparisons between the articles collected in a recent volume edited by Pecchi and Piga dealing with Keynes’s long period considerations set out in the essay Economic possibilities for our grandchildren. Comments concentrate on two of Keynes’s principal forecasts, improvement in the tenor of life and solution of the economic problem, offering an alternative interpretation focusing on their
It has often been argued during the recent credit crisis that commercial banks’ involvement in in... more It has often been argued during the recent credit crisis that commercial banks’ involvement in investment banking activities might have had an impact on the intensity of their underwriting standards. We turn to evidence from the period prior to the complete revocation of the Glass-Steagall Act in the United States and analyze whether investment banks or – section 20 subsidiaries
... Gregory Brown, Luca Erzegovesi, Michael Faulkender, Chris Geczy, John Graham, Robin Greenwood... more ... Gregory Brown, Luca Erzegovesi, Michael Faulkender, Chris Geczy, John Graham, Robin Greenwood, Terry Odean, Loriana Pelizzon, Alberto Pozzolo, Manju Puri, Pascal St-Amour, Olivier Scaillet, Enrique Schroth, Norman Schuerhoff, René Stulz, Jeff Wurgler, and conference ...
Firms undertaking innovative activities typically hold a larger share of immaterial assets and ha... more Firms undertaking innovative activities typically hold a larger share of immaterial assets and have a different capital structure. Differences in the propensity to innovate are likely to translate in different TFP levels. We use data on a panel of firms to study the relationship between firms' capital structure and TFP. We identify variations in financial structure induced by factors that do not directly affect the share of intangibles and test whether these exogen-ous variations affect productivity. We document a negative relationship between leverage and productivity, consistently with theories of financial structure based on bankruptcy costs, control rights and equityholders-debtholders' conflicts.
This paper investigates the determinants of the pattern of banks' foreign investment. We exte... more This paper investigates the determinants of the pattern of banks' foreign investment. We extended previous analyses in three directions. First, we use a unique database that includes information on 260 large banks from OECD countries and all their foreign branches and subsidiaries in each one of the other OECD countries. Second, we consider explicitly the role of institutional and regulatory
This paper investigates what factors might help explain the internationalization strategy of bank... more This paper investigates what factors might help explain the internationalization strategy of banks and insurance companies, by comparing the determinants of cross-border M&As in the two sectors in a unified framework. The empirical analysis shows that between 1990 and 2003 the internationalization of banks and insurance companies followed similar patterns. Distance and economic and cultural integration are important determinants for
This paper presents some new evidence on the conflict of interest that may arise when banks under... more This paper presents some new evidence on the conflict of interest that may arise when banks underwrite corporate securities and sell them to their customers. Two alternative views are confronted; a) that commercial banks possess private information on the financial condition of their clients and so perform better screening (the certification hypothesis); and b) that commercial banks might convert loans
This paper investigates the relationship between exchange rate fluctuations and the investment de... more This paper investigates the relationship between exchange rate fluctuations and the investment decisions of a sample of Italian manufacturing firms. The results support the view that a depreciation of the exchange rate has a positive effect on investment through the revenue channel, and a negative effect through the cost channel.
This paper provides a direct test of banks' ability to mitigate informational asymmetries. In... more This paper provides a direct test of banks' ability to mitigate informational asymmetries. In syndicated loans, lenders' incentive to screen borrowers ex ante and to monitor them ex post increases with the share they retain; consequently, the higher this share, the less risky the loan should be considered by investors, and the lower should be the interest rate they require.
This paper draws comparisons between the articles collected in a recent volume edited by Pecchi a... more This paper draws comparisons between the articles collected in a recent volume edited by Pecchi and Piga dealing with Keynes’s long period considerations set out in the essay Economic possibilities for our grandchildren. Comments concentrate on two of Keynes’s principal forecasts, improvement in the tenor of life and solution of the economic problem, offering an alternative interpretation focusing on their
It has often been argued during the recent credit crisis that commercial banks’ involvement in in... more It has often been argued during the recent credit crisis that commercial banks’ involvement in investment banking activities might have had an impact on the intensity of their underwriting standards. We turn to evidence from the period prior to the complete revocation of the Glass-Steagall Act in the United States and analyze whether investment banks or – section 20 subsidiaries
Uploads