Market response to syndicated loan announcements from high‐profile failed and acquiring banks during the global financial crisis

2019 ◽  
Vol 60 (1) ◽  
pp. 435-470
Author(s):  
Dominic Gasbarro ◽  
Kim‐Song Le ◽  
Robert G. Schwebach ◽  
J. Kenton Zumwalt
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Market Response ◽  
High Profile ◽  
Syndicated Loan ◽  
The Global Financial Crisis ◽  
Loan Announcements

AN ANALYSIS OF SYNDICATED LOAN ANNOUNCEMENTS DURING THE GLOBAL FINANCIAL CRISIS

2017 ◽  
Vol 40 (4) ◽  
pp. 535-565 ◽  
Author(s):  
Dominic Gasbarro ◽  
Kim-Song Le ◽  
Robert G. Schwebach ◽  
J. Kenton Zumwalt
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Syndicated Loan ◽  
The Global Financial Crisis ◽  
Loan Announcements

Has the Global Financial Crisis Changed the Market Response to Credit Ratings? Evidence from an Emerging Market

2019 ◽  
Vol 19 (1) ◽  
pp. 7-32
Author(s):  
Kaveri Krishnan ◽  
Sankarshan Basu ◽  
Ashok Thampy
Keyword(s):  
Financial Crisis ◽  
Stock Price ◽  
Credit Rating ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
Abnormal Returns ◽  
Market Response ◽  
Stock Price Reaction ◽  
The Difference ◽  
The Global Financial Crisis

This article analyses the differential market response to credit rating revisions in the pre- and post-global financial crisis (GFC) period using data from India. By reviewing the stock price reaction to the announcement of long-term rating changes during the period 1996–2015, the study finds evidence that the stock price reacted less to rating announcements after the GFC of 2008. However, the difference in the cumulative abnormal returns before the GFC and after the GFC is not statistically significant. JEL codes: G240, G010, G140

How to Stop a Herd of Running Bears? Market Response to Policy Initiatives During the Global Financial Crisis

2009 ◽  
Author(s):  
Jochen R. Andritzky ◽  
Andreas A. Jobst ◽  
Sylwia Barbara Nowak ◽  
Yacine Ait-Sahalia ◽  
Natalia T. Tamirisa
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Market Response ◽  
Policy Initiatives ◽  
The Global Financial Crisis

scholarly journals Market Response to Policy Initiatives during the Global Financial Crisis

2010 ◽  
Author(s):  
Yacine Aït-Sahalia ◽  
Jochen Andritzky ◽  
Andreas Jobst ◽  
Sylwia Nowak ◽  
Natalia Tamirisa
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Market Response ◽  
Policy Initiatives ◽  
The Global Financial Crisis

Market response to policy initiatives during the global financial crisis

2012 ◽  
Vol 87 (1) ◽  
pp. 162-177 ◽  
Author(s):  
Yacine Aït-Sahalia ◽  
Jochen Andritzky ◽  
Andreas Jobst ◽  
Sylwia Nowak ◽  
Natalia Tamirisa
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Market Response ◽  
Policy Initiatives ◽  
The Global Financial Crisis

Has Financial Crisis Affected the Announcement Gains of Indian Cross-border Acquisitions?

2017 ◽  
Vol 6 (1) ◽  
pp. 55-66 ◽  
Author(s):  
Neelam Rani ◽  
Aman Asija
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
Abnormal Returns ◽  
Market Response ◽  
Event Window ◽  
Crisis Period ◽  
Emerging Market Multinationals ◽  
Cross Border ◽  
The Global Financial Crisis

The failure of an unparalleled large number of financial institutions during the global financial crisis of 2007–2008 resulted in a freeze of global credit markets. The financial crisis has affected the capital markets around the world. In contrast, the global financial crisis has facilitated the strategic asset-seeking ambitions of emerging market multinationals. The objective of the present article is to examine the market response to cross-border acquisition by Indian companies during 2003– 2015 by conducting event study. We have also compared the acquisition gains before and after the financial crisis. The acquisition gains for the event window (–1, 1) are 2.06 per cent for the entire period 2003–2015 for a sample of 430 announcements. Two-thirds of the acquisitions experienced positive abnormal returns. The abnormal returns are positive and significant for the entire event window of 41 days. The empirical findings also suggest that the CAAR on the event day for pre-crisis period is 4.28 per cent compared to CAAR of 1.70 per cent during post-crisis period. Results are statistically significant. It is evident that market response has muted after the financial crisis.

scholarly journals Reflections on Northern Rock: The Bank Run that Heralded the Global Financial Crisis

2009 ◽  
Vol 23 (1) ◽  
pp. 101-119 ◽  
Author(s):  
Hyun Song Shin
Keyword(s):  
Financial Crisis ◽  
Financial Regulation ◽  
Global Financial Crisis ◽  
Capital Requirements ◽  
Coordination Failure ◽  
Short Term ◽  
Balance Sheets ◽  
High Profile ◽  
Bank Run ◽  
The Global Financial Crisis

The U.K. bank Northern Rock became the first high-profile casualty of the global financial crisis of 2007–2008 when it suffered its depositor run in September 2007. In spite of the television images of long lines of depositors outside its branch offices, the run on Northern Rock was unlike the textbook retail depositor run caused by coordination failure. Also, contrary to received wisdom, its reliance on securitization was not an immediate factor in its failure. Rather, its problems stemmed from its high leverage coupled with reliance on institutional investors for short-term funding. When the de-leveraging in the credit markets began in August 2007, Northern Rock was uniquely vulnerable to the shrinking of lender balance sheets arising from the tick-up in measured risks. Financial regulation that relies on risk-weighted capital requirements is powerless against such runs. The Northern Rock case also offers lessons concerning the economics of short-term debt.

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