Journal ArticleDOI
The credit crisis around the globe: Why did some banks perform better?.
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The authors found that banks with more shareholder-friendly boards performed significantly worse during the crisis than other banks, were not less risky before the crisis, and reduced loans more during crisis, while large banks from countries with more restrictions on bank activities performed better and decreased loans less.About:
This article is published in Journal of Financial Economics.The article was published on 2012-07-01. It has received 876 citations till now. The article focuses on the topics: Credit crunch & Tier 1 capital.read more
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Deciphering the Liquidity and Credit Crunch 2007-2008
TL;DR: The financial market turmoil in 2007 and 2008 has led to the most severe financial crisis since the Great Depression and threatens to have large repercussions on the real economy as mentioned in this paper The bursting of the housing bubble forced banks to write down several hundred billion dollars in bad loans caused by mortgage delinquencies at the same time the stock market capitalization of the major banks declined by more than twice as much.
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How does capital affect bank performance during financial crises
TL;DR: The authors empirically examined how capital affects a bank's performance and how this effect varies across banking crises, market crises, and normal times that occurred in the US over the past quarter century.
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The Global Crisis and Equity Market Contagion
TL;DR: This paper analyzed the transmission of the 2007 to 2009 financial crisis to 415 country-industry equity portfolios and used a factor model to predict crisis returns, defining unexplained increases in factor loadings and residual correlations as indicative of contagion.
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Corporate immunity to the COVID-19 pandemic
TL;DR: The pandemic-induced drop in stock returns was milder among firms with stronger pre-2020 finances, and firms controlled by families, large corporations, and governments performed better, and those with greater ownership by hedge funds and other asset management companies performed worse.
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Multinational banks and the global financial crisis: Weathering the perfect storm?
TL;DR: This article used data on the 48 largest multinational banking groups to compare the lending of their 199 foreign subsidiaries during the Great Recession with lending by a benchmark group of 202 domestic banks, concluding that while multinational banks may contribute to financial stability during local bouts of financial turmoil, they also increase the risk of “importing” instability from abroad.
References
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Journal ArticleDOI
Law and Finance
TL;DR: In this article, the authors examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common-law countries generally have the strongest, and French civil law countries the weakest, legal protections of investors, with German- and Scandinavian-civil law countries located in the middle.
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Determinants of corporate borrowing
TL;DR: In this article, the authors predict that corporate borrowing is inversely related to the proportion of market value accounted for by real options and rationalize other aspects of corporate borrowing behavior, such as the practice of matching maturities of assets and debt liabilities.
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Corporate Ownership Around the World
TL;DR: In this paper, the authors use data on ownership structures of large corporations in 27 wealthy economies to identify the ultimate controlling shareholders of these firms, and they find that, except in economies with very good shareholder protection, relatively few firms are widely held, in contrast to Berle and Means's image of ownership of the modern corporation.
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The Law and Economics of Self-Dealing
TL;DR: The anti-self-dealing index as mentioned in this paper is a measure of legal protection of minority shareholders against expropriation by corporate insiders, which is calculated for 72 countries based on legal rules prevailing in 2003, and focuses on private enforcement mechanisms such as disclosure, approval, and litigation, that govern a specific selfdealing transaction.
Journal ArticleDOI
Deciphering the Liquidity and Credit Crunch 2007-2008
TL;DR: The financial market turmoil in 2007 and 2008 has led to the most severe financial crisis since the Great Depression and threatens to have large repercussions on the real economy as mentioned in this paper The bursting of the housing bubble forced banks to write down several hundred billion dollars in bad loans caused by mortgage delinquencies at the same time the stock market capitalization of the major banks declined by more than twice as much.