Abstract This study uses data envelopment analysis (DEA) approach to benchmark the performance of thirteen thrifts and mortgage finance companies against one another for the period 2008 to 2011. We cover the period of start of the economic crisis and the consequent passing to new law to regulate the financial services industry. We find that, at the height of the economic crisis in 2008, only fi...

How did problems in a relatively small portion of the home mortgage market trigger the most severe financial crisis in the United States since the Great Depression? Several developments played a role, including the proliferation of complex mortgage-backed securities and derivatives with highly opaque structures, high leverage, and inadequate risk management. These, in turn, created systemic ris...

We study the influence of financial frictions on the cyclical dynamics of producer prices. Empirical results show that the response of industry-specific PPI inflation to changes in aggregate financial conditions depends importantly on differences in the ease of access to external finance across industries: In industries in which firms face a high likelihood of financial constraints, inflation i...

The phenomenon of the financial crisis is not a new phenomenon around the world. The structure of an economy or a set of economies may face a financial crisis. In fact, it is deformation, dimensions, causes and roots of the financial crisis which create a state of change from this crisis. Recently, evidence has shown that the market value of firms subject to bankruptcy is significantly reduced....

Sun, Titman, and Twite (2014) find that risky capital structure characteristics, such as high leverage, a high share of debt due in the near future and a high share of variable-rate debt, significantly reduce the cumulative total returns of US REITs over the 2007-2009 financial crisis. In this paper we show that preparing ahead of the crisis significantly improved the cumulative return over the...

The rise of the anti-sweatshop movement in the 1990s made it clear that absent public pressure, multinational corporations tend to ignore the working conditions of employees in their subcontracted plants. Yet, these same corporations, once their profits became correlated with treatment of their workers, have implemented various policies aimed at promoting and protecting labor rights in their fa...

This paper studies investment and employment at a subsidiary located in a non-crisis country if its parent firm also has a subsidiary in a crisis country. It finds that investment is about 18% lower in the subsidiaries of these parents relative to the sameindustry, same-country subsidiaries of multinational firms that do not have a subsidiary in a crisis country. Employment growth rate in the a...

The commonly stated motivation for golden parachutes (GP) was to provide managers the incentive to maximize shareholder wealth without concerns of job loss from change of control. But critics have argued that they create the incentive to run down a firm and make it a takeover target, especially in the case of poorly performing firms that require considerable turnaround effort. Such concerns led...