2020

Reaching for Yield in the ABS Market: Evidence from German Bank Investments
Matthias Efing
Review of Finance, Volume 24, Issue 4, July 2020, Pages 929–959, https://doi.org/10.1093/rof/rfz013

It is well documented how the creditworthiness of asset-backed securities (ABSs) deteriorated rapidly during the financial crisis, causing significant financial distress among investors and the economic system as a whole.… Read more...

Margin Trading and Comovement During Crises
Bige Kahraman, Heather Tookes
Review of Finance, Volume 24, Issue 4, July 2020, Pages 813–846, https://doi.org/10.1093/rof/rfz019

In this paper, we exploit threshold rules governing margin trading eligibility in India to identify a causal link between margin trading and increased comovement during crises.… Read more...

Internal Capital Markets in Times of Crisis: The Benefit of Group Affiliation
Raffaele Santioni, Fabio Schiantarelli, Philip E Strahan
Review of Finance, Volume 24, Issue 4, Issue 4, July 2020, Pages 773–811, https://doi.org/10.1093/rof/rfz020

This paper provides the first direct evidence of substitution towards internal capital markets in response to deterioration of the balance sheet condition of a firm’s bank.… Read more...

What Does Stock Ownership Breadth Measure?
James J. Choi, Li Jin, Hongjun Yan
Review of Finance, Volume 17, Issue 4, July 2013, Pages 1239–1278, https://doi.org/10.1093/rof/rfs026

What happens to future returns when large numbers of investors open new positions in a stock?… Read more...

Financial Development and Patterns of Industrial Specialization: Evidence from China
Qing He, Chang Xue, Chenqi Zhu
Review of Finance, Volume 21, Issue 4, July 2017, Pages 1593–1638, https://doi.org/10.1093/rof/rfw024

Foreign direct investment (FDI) and alternative financing channels play a significant role in shaping China’s industrial specialization, although standard financing channels such as the banking sector and capital markets have little impact, according to findings in Financial Development and Patterns of Industrial Specialization: Evidence from China, a study by Qing He, Chang Xue, and Chenqi Zhu.… Read more...

Helping Hand or Grabbing Hand? Central vs. Local Government Shareholders in Chinese Listed Firms
Yan-Leung Cheung, P. Raghavendra Rau, Aris Stouraitis
Review of Finance, Volume 14, Issue 4, October 2010, Pages 669–694, https://doi.org/10.1093/rof/rfp024

Minority shareholders appear to be expropriated in state-owned (SOE) firms controlled by local governments but not in SOEs controlled by the Central government, according to an analysis of related party transactions (RPTs) between Chinese publicly listed firms and their state-owned shareholders by Yan-Leung Cheung, Raghavendra Rau, and Aris Stouraitis.… Read more...

Market Size Structure and Small Business Lending: Are Crisis Times Different from Normal Times?
Allen N. Berger, Geraldo Cerqueiro, María Fabiana Penas
Review of Finance, Volume 19, Issue 5, August 2015, Pages 1965–1995, https://doi.org/10.1093/rof/rfu042

Conventional wisdom holds that small banks may have comparative advantages vis-à-vis large banks in serving small opaque firms, while more recent literature suggests that this may not be the case.… Read more...

Internal Capital Markets in Times of Crisis: The Benefit of Group Affiliation
Raffaele Santioni, Fabio Schiantarelli, Philip E Strahan
Review of Finance, Volume 24, Issue 4, July 2020, Pages 773–811, https://doi.org/10.1093/rof/rfz020

This paper provides the first direct evidence of substitution towards internal capital markets in response to deterioration of the balance sheet condition of a firm’s bank.… Read more...

Monetary Policy, Bank Bailouts and the Sovereign-Bank Risk Nexus in the Euro Area
Marcel Fratzscher, Malte Rieth
Review of Finance, Volume 23, Issue 4, July 2019, Pages 745–775, https://doi.org/10.1093/rof/rfy024

A key feature of the European crisis has been the ever closer link between sovereign and bank risk in the euro area.… Read more...