Banking

Why Don?t All Banks Practice Regulatory Arbitrage? Evidence from Usage of Trust Preferred Securities

We investigate why only some banks use regulatory arbitrage. We predict that banks wanting to be riskier than allowed by capital regulations...

Banks and Labor as Stakeholders: Impact on Economic Performance

Traditionally, the impacts of the rights of financial institutions and workers on corporate performance have been analyzed independently. Yet,...

Bankruptcy's Financial Crisis Accelerator: The Derivatives Players' Priorities in Chapter 11

Risk Mitigating versus Risk Shifting: Evidence from Banks Security Trading in Crises

We show that risk-mitigating incentives dominate risk-shifting incentives in fragile banks. We study security trading by banks, as banks can easily...

Corporate Governance and value preservation: The effect of the FinCEN leak on banks

We examine the market response to the disclosure of suspicious activity reports (SARs), made public as part of the FinCEN leak. We find a significant...

Who Benefits from Sustainability-linked Loans?

In recent years, there has been a significant increase in the issuance of sustainability-linked loans (SLLs), where loan contract terms depend on the...

Regulating Multinational Banks in Europe: An Assessment of the New Supervisory Framework

Putting Integrity into Finance: A Purely Positive Approach

The seemingly never ending scandals in the world of finance with their damaging effects on value and human welfare argue strongly for an addition to the...

The Broken Buck Stops Here: Embracing Sponsor Support in Money Market Fund Reform

Since the 2008 financial crisis, in which the Reserve Primary Fund “broke the buck,” money market funds (MMFs) have been the subject of ongoing...

Corporate Governance in the Recent Financial Crisis: Evidence from Financial Institutions Worldwide

Subprime Crisis and Board (In-)Competence: Private vs. Public Banks in Germany

We examine evidence for a systematic underperformance of Germany's state-owned banks in the current financial crisis and study if the bank losses can be...

Governance of Financial Services Outsourcing: Managing Misconduct and Third-Party Risks

With financial institutions increasingly outsourcing their activities, they face a record number of fraud and misconduct cases arising from...