2013 Working Papers – Archived

Did Capital Requirements and Fair Value Accounting Spark Fire Sales in Distressed Mortgage-Backed Securities?
Craig B. Merrill, Taylor D. Nadauld, René M. Stulz and Shane Sherlund

Examining the Impact of the Volcker Rule on Markets, Businesses, Investors, and Job Creation, Part II
James R. Barth, December 2012

Financing Through Asset Sales
Alex Edmans and William Mann, December 2012

Bank Regulation and Supervision in 180 Countries from 1999 to 2011
James R. Barth, Gerard Caprio, Jr., Ross Levine, January 2013

China’s Housing Market: Is a Bubble About to Burst?
James R. Barth, Michael Lea and Tong Li, October 2012

Why Did Financial Institutions Sell RMBS at Fire Sale Prices during the Financial Crisis?
Craig B. Merrill, Taylor D. Nadauld, René M. Stulz, and Shane M. Sherlund, February 2012

What Determines State Capture in Poland?
Stanisław Alwasiak, Monika Lewandowska-Kalina, Lech Kalina, Oskar Kowalewski, Michał Mozdzen and Krzysztof Rybinski

Moral Hazard in Mutural Fund Management: The Quality-Assuring Role of Fees
Michel A. Habib and D. Bruce Johnsen, March 2013

The Cyprus Debt: Perfect Crisis and a Way Forward
Stavros A. Zenios, March 2013
This is the pre-publication verson only. The published version is available at Cyprus Economic Policy Review, Vol. 7 , No. 1 , pp. 3 – 45 (2013).

Rollover Risk and Corporate Bond Spreads
Patricio Valenzeula

Sovereign Ceilings “Lite”? The Impact of Sovereign Ratings on Corporate Ratings
Eduardo Borensztein, Kevin Cowan and Patricio Valenzuela

Sources of Inconsistencies in Risk Weighted Asset Determinations
Michel Araten, May 2012

Deposits and Bank Capital Structure
Franklin Allen and Elena Carletti, March 2013
An updated version of this paper appears are Working Paper #14-08

Shared Auditors in Mergers and Acquisitions
Dan S. Dhaliwal, Phillip T. Lamoreaux. Lubomir P. Litov and Jordan B. Neyland, April 2013

Lawyers and Fools: Lawyer-Directors in Public Corporations
Lubomir P. Litov, Simone M. Sepe, and Charles K. Whitehead
forthcoming, The Georgetown Law Journal, vol. 102

Large Capital Infusions, Investor Reactions, and the Return and Risk-Performance of Financial Institutions over the Business Cycle
Elyas Elyasiani, Loretta J. Mester and Michael S. Pagano, May 2013
This paper is an updated version of #11-51

Who Said Large Banks Don’t Experience Scale Economies? Evidence from a Risk-Return-Driven Cost Function
Joseph P. Hughes and Loretta J. Mester, April 2013
This paper is an updated version of #11-47

Seeking Alpha, Taking Risk: Evidence from Non-Executive Pay in U.S. Bank Holding Companies
Viral Acharya, Lubomir V. Litov and Simone M. Sepe, October 2013

The Use of Escrow Contracts in Acquisition Agreements
Sanjai Bhagat, Sandy Klasa and Lubomir V. Litov, January 2014

Why High Leverage is Optimal for Banks
Harry DeAngelo and René M. Stulz, May 2013

Capital Structure and Investment Dynamics with Fire Sales
Douglas Gale and Piero Gottardi, April 2013

Estimating Ambiguity Aversion in a Portfolio Choice Experiment
David Ahn, Syngjoo Choi, Douglas Gale, and Shachar Kariv, June 2013

BHC Derivatives Usage, Cost of Debt and Lending Patterns
Saiying (Esther) Deng, Elyas Elyasiani and Connie X. Mao, January 2013

Bank Holding Company Performance, Risk and “Busy” Board of Directors
Elyas Elyasiani and Ling Zhang

The Effects of Foreign and Government Ownership on Bank Lending Behavior During a Drisis in Central and Eastern Europe
Franklin Allen, Krzysztof Jackowicz and Oskar Kowalewski

Financial Openness, Market Structure and Private Credit: An Empirical Investigation
Ronald Fischer and Patricio Valenzuela

Does Legal Counsel Expertise Add Value? Evidence from Mergers and Acquisitions
Sandy Klasa, Lubomir P. Litov, Jordan Neyland and Simone M. Sepe, July 2013

Measuring the Performance of Banks: Theory, Practice, Evidence, and Some Policy Implications
Joseph P. Hughes and Loretta J. Mester, August 1, 2013

The African Financial Development and Financial Inclusion Gaps
Franklin Allen, Elena Carletti, Robert Cull, Jun “QJ” Qian, Lemma Senbet and Patricio Valenzuela, September 2013

Stress Testing Bank Profitability
Michael Duane, Til Schuermann and Peter Reynolds, September 2013

Innovation in Times of Financial Crises
Nina Gorovaia and Stavros A. Zenios, November 13, 2013

Liquidity: How Banks Create It and How It Should Be Regulated
Christa H.S. Bouwman, October 2013
This is the pre-publication version only. The published article is forthcoming in The Oxford Handbook of Banking, (2nd edition; A.N. Berger, P. Molyneux, and J.O.S. Wilson (eds.))

Stakeholder Governance, Competition and Firm Value
Franklin Allen, Elena Carletti and Robert Marquez, August 2, 2013

The European Securities and Markets Authority: Accountability towards EU Institutions and Stakeholders
Carmine Di Noia and Matteo Gargantini

Generating Multi-factor Arbitrage-free Scenario Trees with Global Optimization
Andrea Consiglio, Angelo Carollo and Stavros A. Zenios, January 2014

Staggered Boards And Firm Value, Revisited
K. J. Martijn Cremers, Lubomir P. Litov and Simone M. Sepe, December 5, 2013

Politically Connected Firms in Poland and their Access to Bank Financing
Iftekhar Hasan, Krzysztof Jackowicz, Oskar Kowalewski and Łukasz Kozłowski

The Case for Rapid Resolution Plans
Richard J. Herring