Thesis advisor: Edith Hotchkiss / My dissertation focuses on how the way firms are funded, particularly in periods of financial distress, affects their employment and investment choices. It consists of three papers. The first paper studies how bank lending patterns change after a shock leads some firms to become non-viable. Banks will often continue to lend to poorly performing firms, but it is difficult to distinguish cases where they are lending to viable firms suffering a temporary setback or whether they are ”evergreening”, lending to nonviable firms to help them avoid or delay default. We use a shock to firm growth from the implementation of tolls in a previously free-to-use highway system to attempt to disentangle the two groups of firms. We find evidence more consistent with evergreening: once firms have received a loan in distressed circumstances, they are far more likely to receive a subsequent loan while remaining in a distressed situation. The second paper studies the composition of bank lending in Portugal during the sovereign debt crisis. We provide evidence that banks distort the composition of credit supply in order to comply with ratio-based capital requirements in times of economic distress. An unexpected intervention by the European Banking Authority provides a natural experiment to study how banks respond to falling below minimum required capital ratios during an economic downturn. We show that affected banks respond by cutting lending but also by reallocating credit to distressed firms with underreported loan losses. We develop a method to detect underreported losses using loan-level data. The credit reallocation leads to a reallocation of inputs across firms. We calculate that the resulting increase in input misallocation accounts for about 13\% of the decline in productivity in Portugal in 2012. The third paper uses US Census data to study the impact of private equity deals on employment. Private equity transactions are associated with employment reallocation and job losses (Davis et al. 2014, Olsson and Tag 2017, Arnold et al 2023). However, there is divergence around the role PE firms play in worker outcomes. In this paper we test three hypothesis for why workers are laid off after private equity buyouts: use of market power, breach of trust, and efficient reallocation. / Thesis (PhD) — Boston College, 2024. / Submitted to: Boston College. Carroll School of Management. / Discipline: Finance.

No description available.

No description available.

none

Most theoretical and empirical literatures have investigated the credit channel of monetary transmission in a closed economy. However, when Taiwan becomes financially more internationalized, little literature can provide economic implication for the credit-channel effect of a monetary policy to the case of Taiwan. Therefore we set up a model with the credit market under an open economy to study the credit channel-effect of monetary policy with the inclusion of foreign assets and debts in the bank’s balance sheet. The main conclusion in our theoretical model is that the effect of a tight monetary policy on bank loans will be reduced in an open economy; furthermore, such effect may make bank loans increase after a contractionary monetary policy. Besides, the empirical evidence also shows that bank loans increase after a contractionary monetary policy with the data of Taiwan.

The credit channel literature has made great strides in recent years, however, much of the literature to date has focused largely on the closed economy. Even some of the literatures are in a framework of an open economy, they only concentrate on the fixed or a quasi-fixed exchange rate regime. Therefore, the aim of this paper is to complete the theoretical framework by extending the Bernanke and Blinder model to the case of an open economy under a floating exchange rate regime. We find that the exchange rates puzzle takes place in our model when the influence from credit channels is very significant. We further to compare the credit channel effects under different models. Moreover, we adopt a cointegration analysis to study the credit channel effect, and the empirical evidences show that the credit channels exist in Taiwan for the sample period during November 1991 to January 2005.

本篇論文旨在探討台灣貨幣政策的銀行借貸傳遞管道，著重在銀行行為的分析，我們為銀行在借貸管道中所扮演的行為提供了一個理論的解釋架構。實證上利用共整合與衝擊反應函數分析貨幣政策的影響，結果發現因銀行會調整資產負債的組合來抵銷貨幣政策的影響，所以銀行借貸管道在台灣並不是一個重要的貨幣政策傳遞管道。 / This paper investigates the role of the bank lending channel in the monetary policy transmission process in Taiwan. Particularly, we provide a theoretical framework to describe the effect of banks' behaviors on the bank lending channel. In the empirical study, we perform cointegrated relation and impulse response to analyze the effect of monetary policy on bank loans. We find that a bank lending channel is not a relevant transmission mechanism of monetary policy, which can be due to banks' buffer behaviors.

Diss. Stockholm : Stockholms universitet, 2010.

<p> </p><p>This thesis examines the subprime crisis in a Kindleberger framework as well as how the major banks in Sweden were affected. The thesis ties different events to the framework of Kindleberger and follows the stages he sees in a financial crisis, from the origination of the crisis due to speculation to suggested structural changes in the financial market. The effects upon Swedish banks are followed through the crisis and the effects upon the banks. Conclusions drawn are that the Kindleberger model is applicable to the subprime crisis in terms of components and not always chronologically. Swedish banks have regarding the magnitude of the crisis faired well, the problems causing the crisis are related to Moral hazard problems, regulators and rating institution.</p><p> </p>

The aim of this paper is to investigate the procyclical behavior of banks in terms of lending and loan loss provisioning, and its dynamics with regard to the adoption of the Basel II capital regulation. Using bank-level and country-level panel data spanning from 1996 to 2013 we answer this question for the OECD and BRIC countries. We find a positive effect of bank capitalization on loans growth, which, perhaps due to the recent financial crisis, weakened after 2008. Together with evidence of income smoothing and capital management we also find strong cyclical behavior of banks in terms of loan loss provisioning. At the same time, we do not find any robust changes to this behavior after the introduction of the Basel II capital regulation. We fill a gap in the empirical literature as there has been hardly any research done on changes brought forward by the adoption of the Basel II capital regulation. The results may be therefore of interest for regulators and other professionals. Moreover, we use in our analysis data for BRIC countries, which have been often neglected.