Mo.Fi.R. Working Papers (2018)

Mo.Fi.R. Working Papers (>> Mo.Fi.R. website)

2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
 
  • Paper nr. 149
Title:  Corporate Borrowing and Debt Maturity: The Effects of Market Access and Crises
Authors:  Juan J. Cortina,  Tatiana Didier, Sergio L. Schmukler
Abstract:

This paper studies how access to different markets and crises impact debt financing and maturity. Using data on worldwide corporate issuance activity in domestic and international bond and syndicated loan markets during 1991-2014, the paper shows that these markets are affected differently by crises, while providing financing to different firms at distinct maturities. During the global financial crisis and domestic banking crises, large firms moved away from the crisis-hit markets toward less affected, longer-term ones, switching their financing sources. Hence, firms that switched markets compensated for the financing shocks and maintained, or increased, their borrowing maturity. Country-level maturities also remained stable or even lengthened. However, firms that did not move across markets typically experienced declining financing and shorter borrowing maturities. Firm movements across markets are consistent with credit tightening during crises due to supply-side shocks, significantly affecting debt composition, borrowing maturity, and credit redistribution across firms of different sizes.

JEL Codes:  F65, G00, G10, G32
Keywords: borrowing maturity, capital raising, corporate bonds, debt markets, firm financing, global financial crisis (GFC), syndicated loans
 
  • Paper nr. 148
Title: Banche locali e piccole imprese dopo la crisi tra nuove regole e innovazioni digitali
Authors:  Pietro Alessandrini, Luca Papi
Abstract:
In questo lavoro abbiamo preso in esame l'impatto sul sistema bancario italiano della grande crisi finanziaria e della grande innovazione tecnologica, denominata fintech. Ci siamo chiesti se in questo nuovo contesto possono sopravvivere banche locali fortemente radicate nei territori in stretta relazione con le piccole imprese. L'elaborazione di indicatori di bilancio delle diverse tipologie di banche, distinte per dimensione, dimostra che l'impatto della crisi non ha avuto conseguenze peggiori per le banche più piccole rispetto alle maggiori. Più della crisi, che ha livellato gli indicatori di rischiosità bancaria, hanno influito in modo discriminante sulle banche locali le politiche di stabilizzazione anti-crisi: la politica monetaria espansiva e la politica di regolamentazione estesa e invasiva. Tutta questa problematica va rivista considerando la grande trasformazione tecnologica i nuovi prodotti e processi dei fintech. , che sono sempre più destinati a incidere anche sulle strutture di intermediazione Con le incognite su nuove opportunità e nuovi rischi che ciò comporta. Verranno messe in discussione sia il concetto di dimensione strutturale sia la concorrenza non solo tra banche, ma anche tra banche e non banche.
 
The paper deals with the impact on the Italian banking system of two epochal factors: the great financial crisis and the big technological innovation with new financial products and processes, denominated fintech. Our main question concerns the bank-firm relations. In particular we are interested on if and how local banks could be still considered important for small and medium enterprises. Using balance sheet indicators, our conclusion is that the negative impact of the crisis has not been different between small and big banks. The riskiness indicators appear to be leveled at the end of the crisis. Rather than the crisis, the expansive monetary policy and the new regulatory system have produced an asymmetric impact that is penalizing local banks. Moreover, the digital transformation of fintech is expected to influence the financial intermediation structure, with new opportunities and new risks. Both issues on bank size and competition must be entirely revisited.
JEL Codes:  G01, G18, G21, G23
Keywords: financial crisis, local banks, regulation, fintech
 
  • Paper nr. 147
Title: Risk and competitiveness in the Italian banking sector
Authors:  Francesco Marchionne, Alberto Zazzaro
Abstract:
In this paper, we analyse the relationship between risk and competition in the Italian banking sector over the period from 2006 to 2010. We employ OLS and panel estimators to estimate the impact of the Lerner index, a measure of bank market power, on the Altman Z-score, a proxy of the insolvency
probability. Our results are consistent with the traditional charter value paradigm and reject the new risk-shifting paradigm proposed by Boyd-De Nicolo' (2005). We find that the relationship between bank risk and competition becomes more tightening during the financial crisis. Our results are robust
to different definitions of crisis and different specifications.
JEL Codes:   G01, G21, G33
Keywords:  bank, competition, stability, financial crisis
 
  • Paper nr. 146
Title: The closer the better? Institutional distance and information blurring in a political agency model
Authors:  David Bartolini. Agnese Sacchi, Domenico Scalera, Alberto Zazzaro
Abstract:
Government accountability increases with voters’ proximity to policy-makers. Decentralization reforms implemented in many countries in the last twenty years are based on this principle. We present a political agency model that challenges this view and shows that the effects of increasing proximity may depend on the institutional context. In particular, the presence of rent-seeking politicians and heterogeneity in voters’ political awareness produce
three distinct optimal levels of decentralization. Furthermore, optimal distance depends on the capacity of rent-seeking incumbents to blur information available to voters. When the incumbent reacts to increasing proximity with more blurring activity, the optimal distance increases. Accordingly, less decentralization is preferable.
JEL Codes:  D72; D82; D83; H40
Keywords:  government accountability, information, institutional distance, rent-seeking, political awareness