scholarly journals An Empirical Investigation of the Existence of 'market Discipline' of Off-Balance Sheet Banking Risk

1991 ◽  
Author(s):  
M. Kabir Hassan
Keyword(s):  
Empirical Investigation ◽  
Balance Sheet ◽  
Market Discipline ◽  
Banking Risk

A Further Empirical Investigation of German Firms’ Financial Structure and Ensuing Risks / Finanzierungsstrukturen und Risiken im Unternehmenssektor der Bundesrepublik Deutschland – Weitere Ergebnisse anhand von Unternehmensdaten

2001 ◽  
Vol 221 (5-6) ◽  
Author(s):  
Kai Kirchesch ◽  
Marc Sommer ◽  
Peter Stahlecker
Keyword(s):  
Financial Risk ◽  
Empirical Investigation ◽  
Empirical Distribution ◽  
Risk Measures ◽  
Balance Sheet ◽  
Financial Risks ◽  
Firm Level ◽  
Industrial Enterprises ◽  
Level Data ◽  
The Empirical Analysis

SummaryThe changes in the financial structures of West German industrial enterprises have been investigated in Größl/Stahlecker/Wohlers (2001). The empirical analysis confirmed the hypothesis that small and medium-sized enterprises are confronted with higher - and even rising - financial risks than larger enterprises. Thresholds were introduced to serve as signals for lenders to tighten credit conditions or even file for bankruptcy. Unfortunately, the empirical distribution of the financial ratios could not be quantified, because the analysis has been - due to reasons of availability - based on aggregate data. The present paper’s aim is to check the robustness of the results and to quantify the development of the financial risk measures by using firm-level data that have been the base for the Bundesbank’s special evaluation of the balance sheet statistic of West German enterprises. Our results confirm the higher risk position of small and medium-sized enterprises in the period 1987-1996.

scholarly journals Basic Indicators of Systemic Risk in the EU Banking Sector. Implications for Banking Regulation

2015 ◽  
Vol 47 (1) ◽  
pp. 36-55 ◽  
Author(s):  
Katarzyna Sum
Keyword(s):  
Systemic Risk ◽  
Banking Sector ◽  
Empirical Investigation ◽  
Stress Test ◽  
Balance Sheet ◽  
Banking Regulation ◽  
Risk Regulation ◽  
Test Analysis ◽  
Supranational Level ◽  
The Eu

Abstract The issue of systemic risk regulation and management has gained substantial attention following the latest financial crisis. In the case of the EU it became crucial to deal with the systemic risk problem on a supranational level since the banking sectors of the member countries are highly integrated. While substantial measures have been undertaken to mitigate systemic risk in the EU, the discussion of further reforms continues. This study’s goal is to assess basic indicators of systemic risk in the EU banking sector by using three complementary methods: a forward-looking stock market data analysis, an EU-stress test analysis for systemically important banks, and an empirical investigation of the relation between banking regulation and systemic risk as measured by bank balance sheet indicators. The results lead to a recommendation of further necessary regulatory reforms, which appear in the conclusion.

An Empirical Investigation of German Firms’ Financial Structure and Ensuing Risks / Finanzierungsstruktur und Risiken im Unternehmenssektor der Bundesrepublik Deutschland. Eine empirische Bestandsaufnahme

2001 ◽  
Vol 221 (5-6) ◽  
Author(s):  
Ingrid Größl ◽  
Peter Stahlecker ◽  
Eckhardt Wohlers
Keyword(s):  
Monetary Policy ◽  
Firm Size ◽  
Financial Risk ◽  
Empirical Investigation ◽  
Balance Sheet ◽  
Financial Structure ◽  
Legal Form ◽  
Time Period ◽  
Deutsche Bundesbank ◽  
Effectiveness Of Monetary Policy

SummaryThis paper focuses on the question whether West German firms have experienced an increase in their financial risk position with due implications for the macroeconomy. The investigation is based on a special evaluation of the balance sheet statistics by the Deutsche Bundesbank broken down into firm size and legal form. Empirical findings suggest that owing to positive trends of various financial ratios, above all small and medium sized firms have been exposed to significantly higher risks in the time period 1987-1996. Further tests reveal that for this firms’ size investment and financial risk are negatively correlated. Considering the macroeconomic significance of small and medium sized enterprises, these empirical findings bear serious risks for growth, employment and the effectiveness of monetary policy.

scholarly journals Foreign bond investors and market discipline

2019 ◽  
Vol 24 (1) ◽  
pp. 3-25
Author(s):  
Charlotte Rommerskirchen
Keyword(s):  
Financial Markets ◽  
Empirical Investigation ◽  
Market Discipline ◽  
Great Moderation ◽  
Fiscal Consolidation ◽  
Advanced Economies ◽  
Government Responsiveness ◽  
Bond Spreads ◽  
The Impact ◽  
Market Pressure

This article scrutinizes the impact of foreign bond ownership on market discipline, that is the mutual responsiveness of financial markets and sovereign borrowers. The empirical investigation covers 12 advanced economies during the Great Moderation (1981–2008). This article finds no evidence that foreign bond investors affect the sensitivity of bond spreads to fiscal policy. Reversely, results show that government responsiveness to market pressure is contingent on the make-up of its investor base. Bond spreads spur on fiscal consolidation. The larger the share of foreign bond investors, the bigger this effect.

scholarly journals Balance sheet effects and the country risk premium: An empirical investigation

2004 ◽  
Vol 140 (4) ◽  
pp. 592-612 ◽  
Author(s):  
Juan Carlos Berganza ◽  
Roberto Chang ◽  
Alicia García Herrero
Keyword(s):  
Risk Premium ◽  
Empirical Investigation ◽  
Balance Sheet ◽  
Country Risk ◽  
Balance Sheet Effects ◽  
Country Risk Premium
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