We analyse the role of European development financial institutions (DFIs) in supporting innovation by empirically investigating impact their participation as investors equity deals on target firms' patenting activity. build a unique international data set and firm-level years 2007–2019. Econometric results highlight positive contribution DFIs mobilizing finance to support innovation, magnitude ...

Purpose: There is evidence that managers engage in opportunistic practice to manipulate reported performance attract unsuspecting investors. This paper seeks detect the likelihood of manipulations on financial reports service firms (banks and other institutions) as well identify indicators are likely predictors probability Nigeria. Theoretical framework: The M-score models, from Beneish (1999),...

Requiring many financial institutions to hold a risk-adjusted amount of capital when granting funds, the Basel II framework implies a risk dependent cost of capital for borrowing firms from year-end 2006 onwards. This novel policy of allocating capital creates and intensifies new challenges for manufacturing companies in innovative and capital intensive branches. In this regard, banks and other...

Interconnections among financial institutions create potential channels for contagion and amplification of shocks to the financial system. We estimate the extent to which interconnections increase expected losses and defaults under a wide range of shock distributions. In contrast to most work on financial networks, we assume only minimal information about network structure and rely instead on i...

Our paper studies an economy in which each financial institution takes into account that if it has to sell its assets after others have already sold, the price will be lower. This causes preemptive selling, driven not by actual margin calls, but by the fear of future margin calls. Financial institutions cannot determine their optimal capitalizations in isolation, but need to know the aggregate ...

We examine the effect of fiscal policy on sovereign risk spreads and investigate whether the interaction of fiscal variables with political institutions affect financial markets. Using panel data from emerging market countries, we find that revenue-based adjustment lowers spreads more than spending-based adjustment. Financial markets also react to the composition of spending. Cuts in current sp...

This paper describes the external forces that motivate financial institutions to collect, aggregate, analyze, and mine data so that it can be transformed into information, one of a financial institution’s most valuable assets. In this paper we refer to this strategic information asset as “information currency.” In general, we describe the state of banking and the rapid global changes that affec...