Capital

Working Paper

01 August 2009

The Deep-Pocket Effect of Internal Capital Markets

We provide evidence suggesting that incumbents’ access to group deep pockets has a negative impact on entry in product markets. Relying on a unique French data set on business groups, our paper presents three major findings. First,...

Xavier Boutin | Giacinta Cestone | Chiara Fumagalli | Giovanni Pica | Nicolas Serrano-Velarde
01 March 2012

Private Equity and the Resolution of Financial Distress

We examine the role private equity (PE) firms play in the resolution of financial distress using a sample of 2,151 firms that borrow in the leveraged loan market between 1997 and 2010. Controlling for leverage, PE-backed firms are no more...

Edie Hotchkiss | David Smith | Per Strömberg
01 September 2015

Caught between Scylla and Charybdis? Regulating Bank Leverage When There is Rent Seeking and Risk Shifting

We develop a theory of optimal bank leverage in which the benefit of debt in inducing loan monitoring is balanced against the benefit of equity in attenuating risk-shifting. However, faced with socially-costly correlated bank...

Viral Acharya | Hamid Mehran | Anjan Thakor

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