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ESMT Working Paper

Government guarantees and bank risk taking incentives

ESMT Working Paper No. 14-02 and CESifo Working Paper 4706
Markus Fischer, Christa Hainz, Jörg Rocholl, Sascha Steffen (2014)
Subject(s)
Finance, accounting and corporate governance
Keyword(s)
Government guarantees, exits, risk taking, franchise value, financial crisis, loans
JEL Code(s)
G20, G21, G28
This paper analyzes the effect of the removal of government guarantees on bank risk taking. We exploit the removal of guarantees for German Landesbanken which results in lower credit ratings, higher funding costs, and a loss in franchise value. This removal was announced in 2001, but Landesbanken were allowed to issue guaranteed bonds until 2005. We find that Landesbanken lend to riskier borrowers after 2001. This effect is most pronounced for Landesbanken with the highest expected decrease in franchise value. Landesbanken also significantly increased their off-balance sheet exposure to the global ABCP market. Our results provide implications for the debate on how to remove guarantees.

 

View all ESMT Working Papers in the ESMT Working Paper Series here. ESMT Working Papers are also available via SSRN, RePEc, EconStor, and the German National Library (DNB).

Pages
55
ISSN (Print)
1866–3494
Book Review

Leveraging corporate responsibility: The stakeholder route to maximizing business and social value

by CB Bhattacharya, Sankar Sen, Daniel Korschun, India: Quality Times
CB Bhattacharya (2014)
Subject(s)
Ethics and social responsibility
Book Chapter

Minimal change can be best option: Why Berlin snack bar resisted change

In Managing change, 6th ed., edited by Bernard Burnes, 301–302. Harlow: Pearson Education.
Urs Müller, Veit Etzold (2014)
Subject(s)
Marketing
Keyword(s)
Marketing, strategy, positioning, branding, heritage, tradition, family business, entrepreneurship, succession planning, consumer, Berlin, food
Secondary Title
Managing change
Edition
6th ed.,
Pages
301–302
ISBN
978-0-273-77896-7
Online

The German energy turnaround: Implications for Russia

Energy Daily
Subject(s)
Economics, politics and business environment
ESMT Business Brief

ESMT innovation index 2012: Electricity supply industry

ESMT Business Brief No. BB-14-01
Subject(s)
Ethics and social responsibility; Strategy and general management
Keyword(s)
Electricity supply industry, innovation, research, sustainability, productivity, ranking, R&D, climate performance, renewables, security of supply, patents, investment activities, transformation leaders, research leaders, dissemination leaders, hesitants, CEZ, Electricité de France (EDF), GDF-Suez, E.ON, RWE, Enel, Dong, Fortum, Statkraft Vattenfall, Iberdrola, Energias de Portugal (EDP), Axpo, Scottish and Southern Energy (SSE)
The ESMT innovation index 2012 – Electricity supply industry measures innovation activities of 16 major European utilities. In addition to expenses on research and development (R&D), patents and research areas, it also takes indicators for process innovation into account, in particular the utilities’ performance regarding productivity and sustainability.
Pages
32
ISSN (Print)
1866–4024
Online

Falling short of expectations? Stress-testing the European banking system

VoxEU
Sascha Steffen, Viral Acharya (2014)
Subject(s)
Economics, politics and business environment; Finance, accounting and corporate governance
Book Chapter

Leveraging corporate social responsibility for competitive advantage

In Strategy to leverage CSR for competitive advantage, edited by Jaswant Singh Ahluwalia, 34–41. New Delhi: IOD Publishing.
CB Bhattacharya (2014)
Subject(s)
Ethics and social responsibility
Secondary Title
Strategy to leverage CSR for competitive advantage
Pages
34–41
Working Paper

Falling short of expectations? Stress-testing the European banking system

Center of European Policy Studies Working Paper No. 315
Viral V. Acharya, Sascha Steffen (2014)
Subject(s)
Finance, accounting and corporate governance
Keyword(s)
AQR, stress tests, banking union, bail-out
JEL Code(s)
G01, G21, G28, G14, G15, F3
Working Paper

Anatomy of a contract change

NBER Working Paper No. 19849
Subject(s)
Economics, politics and business environment
Keyword(s)
Labor contracts, incentives, behavioral economics, plantations
JEL Code(s)
D23, J33, L25
ISSN (Print)
0898-2937
Conference Proceeding

Boardroom of the future: Challenges to and strategies for effective functioning

Academy of Management Proceedings 2014 (1)
Suzanne C. de Janasz, Heather Foust-Cummings, Jan U. Hagen, Morten Huse, Karsten Jonsen, Tracy Long, Maury Peiperl et al. (2014)
Subject(s)
Human resources management/organizational behavior
Keyword(s)
Boards, crisis, diversity
A quarterly chat around the conference table between the chair and the old boy’s network (i.e., board members) no longer suffices, especially given market and stakeholder expectations, not to mention increasing efforts at mandating board diversity. So, what does the boardroom of the future look like? What are the challenges and strategies for effective functioning in that changing context? This symposium addresses what is actually happening in the current practice of board functioning as well as the state of current research, and seeks to build a picture of the functioning of boards of the future. Our panelists are seasoned academics, consultants and practitioners, and represent multiple perspectives on and experiences with boards across the US and Europe (and beyond) and will engage the audience—and each other—in a lively debate and discussion.
With permission of the Academy of Management
Volume
2014
ISSN (Online)
2151-6561
ISSN (Print)
0065-0668
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