Working Paper

01 June 2007

Political Connections and Preferential Access to Finance: The Role of Campaign Contributions

Using novel indicators of political connections constructed from campaign contribution data, we show that Brazilian firms that provided contributions to (elected) federal deputies experienced higher stock returns around the 1998...

Stijn Claessens | Erik Feyen | Luc Laeven
01 February 2014

Capital-Market Effects of Securities Regulation: Prior Conditions, Implementation, and Enforcement

This paper examines the economic effects of changes in securities regulation. We analyze two key directives in the European Union (EU) that tightened market abuse and transparency regulation. All EU member states were required to...

Hans Christensen | Luzi Hail | Christian Leuz
01 December 2015

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 (constrained banks) use regulatory arbitrage while others do not. We find support for this...

Nicole Boyson | René Stulz
01 December 2005

Financial Liberalization and Banking Crises: The Role of Capital Inflows and Lack of Transparency

This paper shows that the liberalization of capital inflows may undermine bank stability in emerging markets. After financial liberalization, uninformed international investors rationally provide large amounts of funds at low...

Mariassunta Giannetti
25 September 2017

Fintech and the Financing of Entrepreneurs: From Crowdfunding to Marketplace Lending

For the last decade economists have been preoccupied with the decline in bank financing to small businesses and entrepreneurs. This effort has produced a better understanding of the obstacles to external financing. We examine the...

Mark Fenwick | Joseph McCahery | Erik Vermeulen