Dynamic Debt Runs and Financial Fragility: Evidence from the 2007 ABCP Crisis

Author(s):

Enrique Schroth

 et al.
Topic:
Finance
Industry:
Banking

Debt runs played a central role in the financial crisis of 2007-2008, reigniting the debate about their causes and how they can be prevented. This research uses the 2007 asset-backed commercial paper (ABCP) crisis as a basis to study the determinants of debt runs.

This paper can may be of specific interest to financial institutions, as it has clear implications about the design of off-balance sheet investments, the degree of maturity mismatch between debt and assets, the strength of the credit guarantees and, most importantly, exactly how much leverage is unsafe. This discussion is timely, given the efforts by the Vickers report and the Liikanen report to address the problems of shadow banking.

Updated: 20/12/2013
Comments:
Views: 4,633

Investor protection, taxation and dividends

Author(s):

Meziane Lasfer

 et al.

In this article Mohammed Alzahrani and Meziane Lasfer look at how dividend payments of firms listed in 24 OECD member countries are affected by different levels of investor protection. Previous evidence that firms in high investor protection countries pay higher dividends in the presence of tax costs of dividends is reassessed.

Updated: 17/10/2012
Comments:
Views: 2,452

Adding Prior Knowledge to Quantitative Operational Risk Models

Author(s):

Jens Nielsen

 et al.

An analysis of the fundamental issues that arise in practice when modeling operational risk data. This paper addresses the statistical problem of estimating an operational risk distribution, both abundant data situations and when available data is challenged from the inclusion of external data or because of underreporting.

Updated: 01/01/2015
Comments: 4
Views: 2,645

Insights into customer insight

How can you drive consistently high quality customer insights through all levels of a business? Professor of Consumer Marketing, Vince Mitchell, explains how the role of the customer insight department is changing.

Updated: 10/10/2012
Comments:
Views: 2,447

SMEs in selected countries in East Asia

Author(s):

Li Xue Cunningham

Topic:
Strategy
Industry:
Any Industry

With a sustained high single to double digit economic growth and development in recent decades, East Asian economies are increasingly playing the role of a global growth pole, and are fast emerging as a manufacturing and information technology hub of the world economy. One of the key characteristics of the East Asia region is the presence and importance of a significant small and medium-sized enterprises (SME) sector, comprising the majority of enterprises in all the region's economies.

The paper examines the issues and challenges to East Asian SMEs in a renewed global market environment. The importance of SMEs in their respective nation's economy is demonstrated, and the difficulties, challenges, and opportunities for SMEs in the new economic environment after the 2008 financial crisis are discussed.

Updated: 05/01/2015
Comments: 17
Views: 2,960

Investigating the broken-heart effect

Author(s):

Jaap Spreeuw

 et al.

The traditional assumption made in life insurance about the independence of the remaining lifetimes of a couple has come under greater scrutiny recently.

In this paper, the researchers postulate that dependence between coupled lifetimes is of a short-term type. Evidence is found that mortality rates increase after the death of a partner and, in addition, that this phenomenon diminishes over time.

Updated: 06/01/2015
Comments: 7
Views: 3,986

Momentum effects: G10 currency return survivals

Author(s):

Natasa Todorovic

 et al.
Topic:
Finance
Industry:
Banking

The aim of this paper is to analyse data dependencies and patterns in historic currency time series data and implement trading rules that lead to abnormal currency returns that cannot be explained by any systematic risk taking.

This paper analyses momentum effects in G10 currencies by applying survival analysis common in life time statistics to shed a new light on the market efficiency within the currency market.

Updated: 05/01/2015
Comments: 13
Views: 3,652

Unusual talent: a study of successful leadership and delegation in dyslexic entrepreneurs

This study examines how dyslexia has affected the way ten successful entrepreneurs who are dyslexic lead their companies and manage their teams.

It seeks to understand whether dyslexia has shaped the way they organise and manage their ventures, their leadership style, the way they communicate and the way they deal with the people around them, including their employees.

Updated: 05/01/2015
Comments: 4
Views: 4,335

Knowledge acquisition in investment banking

Author(s):

Chris Rowley

 et al.

This paper examines knowledge management practices within the investment banking sector, using two international banking institutions as examples, focusing on the work of key professionals - securities analysts and equity traders.

It finds a knowledge gap which is partly historical, as the professional licencing requirements of securities analysts has not, to date, included specific skill development in the qualitative forms of data analysis required for systematic human capital analysis.

Updated: 06/02/2013
Comments:
Views: 4,164