Steven Ongena, Finance PhD Pitch Perfect, 2022. (Other Publication)
Turning research ideas into research papers can be hard. It is therefore key for PhD students to get feedback early in the research process. The goal of the Finance PhD Pitch Perfect is precisely it: to give students an opportunity to present their unpolished ideas and receive feedback from accomplished researchers in the field. |
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Christoph Sigg, Konsolidierungsdruck der unabhängigen Vermögensverwalter in der Schweiz - eine Ursachenanalyse, University of Zurich, Faculty of Business, Economics and Informatics, 2022. (Bachelor's Thesis)
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Murat Kurtoglu, Wie die jüngsten internationalen Regulierungen die Aktivitäten von G-SIB Banken beeinflussen, University of Zurich, Faculty of Business, Economics and Informatics, 2022. (Bachelor's Thesis)
Bis zum heutigen Tag werden die volkswirtschaftlichen Problematiken rund um
systemrelevante Banken heiss diskutiert. Es besteht ein Trade-Off zwischen der
Regulation der Banken durch die aufsichtlichen Behörden und der freien Marktwirtschaft.
In der folgenden wissenschaftlichen Arbeit werden die aufgesetzten Regulationen von
zwei weltweit anerkannten Ausschüssen diskutiert und deren wettbewerbsverzerrende
Auswirkungen auf global systemrelevante Banken analysiert. Dazu werden die
geschäftlichen Aktivitäten von 22 G-SIBs während einem Zeitraum von 2009 bis 2014
empirisch untersucht. Die Kernkapitalquote der Banken ist deutlich gestiegen, während
die Verschuldung der Banken gesunken ist. Zusätzliche Massnahmen zur Verbesserung
des Risikoprofils der Banken sind die Verminderung von Klumpenrisiken,
Einschränkung von Interbankforderungen und die Abspaltung der risikoreichen
Geschäfte vom Kerngeschäft. |
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Manthos D Delis, Maria Iosifidi, Pantelis Kazakis, Steven Ongena, Mike G Tsionas, Management practises and M&A success, Journal of Banking and Finance, Vol. 134, 2022. (Journal Article)
We study whether management practices determine merger and acquisition (M&A) success. We model management as an unobserved (latent) variable in a standard microeconomic model of the firm and derive firm-year management estimates. We validate these estimates against benchmark survey data on management practices and by using Monte Carlo simulation. We show that our measure is among the most important determinants of value creation in M&A deals, substantially increasing the predictive power of models that explain cumulative abnormal returns. Thus, we offer a measure of management practices that identifies the best-performing M&As. Our results are robust to the inclusion of acquirer fixed effects and many control variables, and to several other sensitivity tests. We identify the Q-theory as the key mechanism driving our results. |
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Steven Ongena, Too-Big-To-Strand: Bond to Bank Substitution in the Transition to a Low-carbon Economy , In: ACFBP 2021: Annual Conference of Financial and Banking Perspectives. 2021. (Conference Presentation)
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Redaktion, Steven Ongena, How piecemeal carbon pricing affects cross-border lending, In: The Economist, 4 December 2021. (Media Coverage)
In june the imf made the latest of many calls from economists for a market-oriented policy to tackle climate change. “Carbon pricing...is the least-cost option to deliver deep emission cuts,” it argued in a paper written ahead of a meeting of the leaders of the g20 group of large economies. Carbon taxes, as this newspaper has long argued, can be a powerful way to force polluters to pay for the harm they do to the environment by burning fossil fuels. |
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Mahmoud Fatouh, Simone Giansante, Steven Ongena, Economic support during the Covid crisis. Quantitative Easing and Lending Support Schemes in the UK, Economics Letters, Vol. 209, 2021. (Journal Article)
We investigate how UK bank business lending responded to the simultaneous use of quantitative easing, leverage ratio capital requirements, and government COVID lending support schemes. We find no evidence that the Brexit wave increased lending to nonfinancial businesses, compared to the previous waves, except for QE-banks subject to the UK leverage ratio, suggesting that the ratio incentivised QE-banks to lend to businesses. The government schemes helped expand lending especially to SMEs post the COVID wave, indicating that complementing QE with other credit easing programmes can reinforce its impact on lending to the real economy. During COVID-stress, changes to the UK leverage ratio supported better market-making in securities markets, and additional QE liquidity boosted stronger repo market intermediation. |
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Steven Ongena, Do governments and banks see eye to eye about the environment? Maybe not yet, but can they?, Economic and Political Studies, Vol. 9 (4), 2021. (Journal Article)
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Elena Carletti, Paolo Colla, Mitu G Gulati, Steven Ongena, The Price of Law: The Case of the Eurozone Collective Action Clauses, Review of Financial Studies, Vol. 34 (12), 2021. (Journal Article)
We analyze the price effect of the introduction of Collective Action Clauses (CACs) in newly issued sovereign bonds of Eurozone countries as of January 1, 2013. By allowing a majority of creditors to modify payment obligations, such clauses reduce the likelihood of holdouts while facilitating strategic default by the sovereign. We find that CAC bonds trade in the secondary market at lower yields than otherwise similar no-CAC bonds. The yield differential widens in countries with worse ratings and in those with stronger legal systems, especially if of mid-range quality. Hence, CACs are seen as pro- rather than anti-creditor provisions. |
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Steven Ongena, Winta Beyene, Too-Big-To-Strand: Bond to Bank Substitution in the Transition to a Low-carbon Economy , In: Research Seminar University of Orléans. 2021. (Conference Presentation)
Fossil fuel investments over the past few years are at the centre of political debates about climate change policy. This article explores the role market- and bank-based debt play in the climate transition process. It presents evidence that fossil fuel firms increasingly substitute bonds for syndicated bank loans, when banks price the risk of stranded assets less than the bond market. |
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Steven Ongena, Steven Ongena, Modelling loan demand in sustainable finance, In: Florence School of Banking and Finance, 18 November 2021. (Media Coverage)
An insightful description of how the use of loan fixed effects in the context of loan demand for sustainable banking is effective and determinant. |
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Steven Ongena, Too-big-to-strand? Bond versus bank financing in the transition to a low-carbon economy, In: FBF - ECO joint seminar. 2021. (Conference Presentation)
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Evian Fischer, Big Data im Schweizer Kreditvergabegeschäft, University of Zurich, Faculty of Business, Economics and Informatics, 2021. (Bachelor's Thesis)
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Alin Marius Andries, Steven Ongena, Nicu Sprincean, The COVID-19 Pandemic and Sovereign Bond Risk, North American Journal of Economics and Finance, Vol. 58, 2021. (Journal Article)
Governments around the world are tackling the COVID-19 pandemic with a mix of public health, fiscal, macroprudential, monetary, and/or market-based policies. We assess the impact of the pandemic in Europe on sovereign CDS spreads using an event study methodology. We find that a higher number of cases and deaths and public health containment responses significantly increase the uncertainty among investors in European government bonds. Other governmental policies magnify the effect in the short run as supply chains are disrupted. Moreover, an increased debt-to GDP ratio significantly boosts the cumulative abnormal change of CDS spreads, which indicates that investors are concerned about countries that are too indebted and thus have a limited capacity to intervene and provide fiscal stimuli and emergency fiscal packages to businesses and households. |
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Emanuela Benincasa, Climate policy and cross-border lending: evidence from the syndicated loan market, Economic and Political Studies, Vol. 9 (4), 2021. (Journal Article)
Do cross-country differences in climate policy influence bank lending? This paper focusses on the period 2007–2017 and uses syndicated loan-level data to examine if the stringency of home-country climate policies increases cross-border bank lending. Loan fixed effects allow us to disentangle loan demand from supply and to control for unobserved and observed loan and firm characteristics. I find evidence that a strict home-country climate policy is associated with an increase in banks’ cross-border loan shares. This suggests that the transition to a low-carbon economy might be threatened if global coordination between governments is not enforced. |
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Steven Ongena, Winta Beyene, Too-Big-To-Strand: Bond to Bank Substitution in the Transition to a Low-carbon Economy , In: Seminar at Fox School of Business, Temple University. 2021. (Conference Presentation)
Fossil fuel investments over the past few years are at the centre of political debates about climate change policy. This article explores the role market- and bank-based debt play in the climate transition process. It presents evidence that fossil fuel firms increasingly substitute bonds for syndicated bank loans, when banks price the risk of stranded assets less than the bond market. |
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Hua Cheng, Kishore Gawande, Steven Ongena, Shusen Qi, Connected banks and economic policy uncertainty, Journal of Financial Stability, Vol. 56, 2021. (Journal Article)
In this paper, we examine the role of political connections in mitigating the detrimental impact of policy uncertainty on banks. Our estimates show that banks are more cautious when facing policy uncertainty, but that the effect is partially alleviated when banks are politically connected. For an increase of one standard deviation in policy uncertainty, connected banks maintain a loss provision to loan volume ratio that is almost seven percent lower compared to their unconnected peers. These findings are robust to a geographical regression discontinuity setting, as well as to a placebo test. Lastly, the mitigating role of political connections is driven mainly by smaller banks and periods of stricter banking regulations. |
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Marco Pecoraro, Implications for a wide use of CBDC in Switzerland: benefits, risks, and challenges, University of Zurich, Faculty of Business, Economics and Informatics, 2021. (Bachelor's Thesis)
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Volkan Keyis, Event Study – Wie unterscheiden sich die Kursreaktionen auf Corona-Events in der Schweiz von Bankaktien und denen von nichtfinanziellen Unternehmen?, University of Zurich, Faculty of Business, Economics and Informatics, 2021. (Bachelor's Thesis)
Der Start der Coronapandemie (COVID-19) brachte für wirtschaftliche Systeme auf der ganzen Welt neue Herausforderungen, Risiken und Chancen. Restriktionen, politische Massnahmen, Hilfspakete und Fallzahlen beeinflussen Unternehmen und deren Aktienkurse. Aktienmärkte scheinen schneller und ausgeprägter von den negativen Folgen getroffen worden zu sein. Deswegen beschäftigt sich die vorliegende Forschungsarbeit vor dem Hintergrund Schweizer Coronamassnahmen mit Unterschieden bei Aktienkursreaktionen von Banken und nichtfinanziellen Unternehmen (Nonfinancials). Es wird vermutet, dass Banken sich durch ihr einzigartiges Geschäftsmodell, Systemrelevanz und sonstige Faktoren von den übrigen Unternehmen unterscheiden. Um dieser Frage nachzugehen, wurde vorwiegend die Methode der Event Study angewendet. Um die eigentliche Fragestellung optimal zu beantworten, werden mehrere aufbauende Fragestellungen herbeigezogen. Die Untersuchung wurde durch Erkenntnisse aus bestehenden Studien ergänzt und mit Determinanten von Aktienpreisen aus unterschiedlichen Modellen unterstützt. Die Ergebnisse der kombinierten Untersuchungen zeigen, dass die genannten Unterschiede tatsächlich bestehen, jedoch keine allgemeinen Aussagen zu Bankaktien und Nonfinancials getroffen werden können, da deren interne Unterschiede keine Generalisierung zulassen. Dieser Umstand wird durch den Vergleich mit bisherigen Forschungsergebnissen abgeschwächt. Die Hauptunterschiede zwischen den Kursreaktionen bestehen einerseits in der Stärke der Kursreaktionen, die bei Bankaktien schwächer ausfallen. Andererseits wirken Coronaeinflüsse bei Bankaktien längerfristig. |
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Ana Jovanovska, From Financial Crisis to COVID-19 Pandemic. An Empirical Analysis of the United States, University of Zurich, Faculty of Business, Economics and Informatics, 2021. (Master's Thesis)
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