-
FINESS Working Papers 4.1 / 2009
Perfect risk sharing requires both, frictionless goods as well as frictionless asset markets. To analyze the consequences of both type of frictions for consumption risk sharing across countries, the model by Ghironi and Melitz (2005) is extended to allow for international trade in equities. The model features fixed costs of exporting as well as variables iceberg costs when shipping goods. Financial ...
2009| Sven Blank
-
FINESS Working Papers 3.4 / 2009
The paper investigates the link between bank concentration and a country's buyout market. We perform a macro level analysis for 15 European countries during 1997-2007. We estimate the elasticity of the country i's buyout market to country i's concentration in the banking sector. Our major finding suggests that the more concentrated the banking sector is, the better it is for the size of the buyout ...
2009| Oleg Badunenko, Saloni Deva, Dorothea Schäfer, Michael Viertel
-
FINESS Working Papers 3.1B / 2009
With banking sectors worldwide still suffering from the effects of the financial crisis, public discussion of plans to place toxic assets in one or more bad banks has gained steam in recent weeks. The following paper presents a plan how governments can efficiently relieve ailing banks from toxic assets by transferring these assets into a work publicly sponsored work out units, a so-called bad bank. ...
2009| Dorothea Schäfer, Klaus F. Zimmermann
-
FINESS Working Papers 3.1A / 2009
Since the summer of 2007, participants in financial markets have been confronted by a crisis of their own making. In order to prevent the recurrence of a similar crisis in the future, the G-20 nations, at their finance summit in Washington on 15 November 2008, resolved to "ensure that all financial markets, products and participants are regulated or subject to oversight, as appropriate to their circumstances." ...
2009| Dorothea Schäfer
-
FINESS Working Papers 3.1 / 2009
The paper investigates the motives of activity (entry and exit) of Private Equity (PE) investors in European companies. Investment of a PE firm is not viewed unambiguously. First, it is claimed that PE investment is made for the sake of seeking shortterm gains by taking control and utilizing the company's resources. Second, a PE firm invests because of prior identification of chances to add value to ...
2009| Oleg Badunenko, Nataliya Barasinska, Dorothea Schäfer
-
FINESS Working Papers 2.4 / 2009
Over the past decades, banks have significantly increased their cross-border asset positions. The ongoing crisis on international financial markets has raised the question whether this increase in cross-border activities has allowed banks to diversify risks and to what extent it has increased banks' exposure to systemic risks. In this contribution, we review the existing empirical evidence.
2009| Claudia M. Buch, Katja Neugebauer
-
FINESS Working Papers 2.2 / 2009
We investigate whether or not banks play a positive role in the ownership structure of European listed firms. We distinguish between banks and other institutional investors as shareholders and examine empirically the relationship between financial institution ownership and the performance of the firms in which they hold equity. Our main finding is that after controlling for the capital structure decision ...
2009| Lieven Baert, Rudi Vander Vennet
-
FINESS Working Papers 1.4 / 2009
This paper investigates the macroeconomic benefits of international financial integration and domestic financial sector development for the European Union. The sample consists of 26 European countries with annual data during the period 1970.2004. We attempt to exploit more fully the temporal dimension in the data by making use of the common correlated effects (CCE) estimator. We also account for the ...
2009| Sean Holly, Mehdi Raissi
-
FINESS Working Papers 1.2 / 2009
In this paper we explore the issue of financial convergence in the new EU member states (NMS). For the purposes of our analysis the countries falling into the category NMS are Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia, i.e. all countries that joined the EU in the last decade, except Cyprus and Malta.
2009| Kalin Hristov, Rossen Rozenov
-
FINESS Working Papers 1.1d / 2009
The purpose of this paper is to establish how far the process of financial integration has gone in the European Union. There is growing evidence that the appearance of the Euro has accelerated the integration of a number of financial markets among those countries who have adopted the Euro. We identify the growth in financial integration as the process by which idiosyncratic factors at the national ...
2009| Chris Higson, Sean Holly, Ivan Petrella