The fading stock market response to announcements of bank bailouts

Fratianni, Michele; Marchionne, Francesco

doi:10.1016/j.jfs.2013.01.004

Cited by 32 publications

(14 citation statements)

References 48 publications

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“…In conclusion, our analysis suggests that, in advanced economies, the marginal benefits of bank capital decline substantially after 15-23 percent risk-weighted capital ratios: additional capital becomes less effective in avoiding banking crises (based on absorbing NPLs) and public 14 We recognize the incompleteness of the data especially in the case of European banks. The data on capital injections in European banks are taken from estimates by Fratianni and Marchionne (2013) recapitalizations. As discussed before, this abstracts from the costs associated with higher capital requirements.…”

Section: B Capital Sufficient To Avoid Public Recapitalizations Of Bmentioning

confidence: 99%

Benefits and Costs of Bank Capital

Dagher¹,

Dell’Ariccia²,

Laeven³

et al. 2016

Staff Discussion Notes

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Section: B Capital Sufficient To Avoid Public Recapitalizations Of Bmentioning

confidence: 99%

Benefits and Costs of Bank Capital

Dagher¹,

Dell’Ariccia²,

Laeven³

et al. 2016

Staff Discussion Notes

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“…Our results are robust to a number of extensions: We consider losses on securities during recent crises and find that they were similar to loan losses, validating our results based on bank losses. We also use data from Fratianni and Marchionne (2013) on capital injections in individual banks during the 2007 crisis, and find that a 23 percent capital ratio would have avoided almost all public recapitalizations of individual banks. This supports our previous results based on system averages.…”

Section: Results Are Robust But Some Caveatsmentioning

confidence: 99%

IMF Research Bulletin, September 2016

Fund¹

2016

IMF Research Bulletin

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Global job creation remains sluggish, prompting calls for policy actions to raise economic growth. Will growth create jobs? Recent IMF research documents a striking variation among countries in the extent to which employment responds to GDP growth over the course of a year. In some countries, labor markets are quite responsive: when growth picks up, employment goes up and unemployment falls; in other countries the response is quite muted. Thus, a pickup in growththrough aggregate demand stimulus for instance-will result in more jobs, but the extent of job creation in the short run could vary sharply across countries. Some structural measures can thus serve as useful complementary policies, as also discussed in IMF research. The global unemployment rate increased sharply during the Great Recession to a peak of 6.2 percent in 2009 (Figure 1a). The increase in unemployment in

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“…Other important drivers which lead to ambiguity in interpretation of information are information asymmetry, usage of red flag phrases and earnings environment ambiguity. Fratianni and Marchionne (2013) studied the diminishing impact of bank bailout news citing either inadequacy of bailout plan or incredibility of information.…”

Section: Behavioral Finance Mediators Of Investor Decision Makingmentioning

confidence: 99%

Behavioral mediators of financial decision making – a state-of-art literature review

Nigam

Srivastava

Banwet

2018

RBF

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Purpose The purpose of this paper is to review the insights provided by behavioral finance studies conducted in the last decade (2006-2015) examining behavioral variables in financial decision making. Design/methodology/approach The literature review assesses 623 qualitative and quantitative studies published in various international refereed journals and identifies possible scope of future work. Findings The paper identifies stock market anomalies which contradict rational agents of modern portfolio theory at an aggregate level and behavioral mediators, influencing the financial decision making at an investor level. The paper also attempts to classify different dimensions of risk as professed by the investor. Originality/value The authors synthesize the contribution made by behavioral finance studies in extending the knowledge of financial market and investor behavior.

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The fading stock market response to announcements of bank bailouts

Cited by 32 publications

References 48 publications

Benefits and Costs of Bank Capital

Benefits and Costs of Bank Capital

IMF Research Bulletin, September 2016

Behavioral mediators of financial decision making – a state-of-art literature review

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