| 1. |
- Landström, Mats, 1967-
(författare)
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Do Central Bank Independence Reforms Matter for Inflation Performance?
- 2011
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Ingår i: International Journal of Banking, Accounting and Finance. - : InderScience Publishers. - 1755-3830 .- 1755-3849. ; 3:4, s. 320-335
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Tidskriftsartikel (refereegranskat)abstract
- A difference-in-difference approach was used to investigate whether central bank independence (CBI) reforms matter for inflation, based on a novel dataset including the possible occurrence of such reforms in 132 countries during the period 1980 to 2005. CBI-reforms are found to have contributed to bringing down high inflation rates where those existed, but they seem unrelated to performance in low-inflation countries.
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| 2. |
- Larsson, Bo
(författare)
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Banking and optimal capital ratio in an equilibrium model
- 2010
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Ingår i: International Journal of Banking, Accounting and Finance. - : Inderscience Publishers. - 1755-3830 .- 1755-3849. ; 2:4, s. 309-331
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Tidskriftsartikel (refereegranskat)abstract
- The author address the question of optimal capital ratio in banking, particularly the fact that banks' risk-weighted capital is substantially larger than the stipulated reserve requirements by the Bank of International Settlements. With a factor model for the value of entrepreneurs' projects and costly state verification as asymmetric information structure, the author shows that banks choose to hold capital reserves that are almost large enough to eliminate the risk for their depositors. The reason is that the cost of lowering the risk for the bank, up to a point, is lower than their gain from cheaper deposits. Banking risk stems from borrowers being correlated. This has been an important lesson during the ongoing financial crisis where several banks underestimated the correlation in their loan portfolios and suffered severe credit losses. This could also explain why small regional banks in Sweden often have more than twice the capital ratio of their nationwide competitors.
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| 3. |
- Lindblom, Ted, 1956, et al.
(författare)
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Capital structure choices
- 2011
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Ingår i: International Journal of Banking, Accounting and Finance. - 1755-3830. ; 3:1, s. 4-30
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Tidskriftsartikel (refereegranskat)abstract
- Corporate finance theory provides a number of competing hypotheses for explaining the capital structure choice of firms. The major ones are the ‘trade-off’ theory, which hypothesises an optimal combination of debt and equity capital, and the ‘pecking-order’ theory, which suggests a ranking order between different types of capital making a firm’s capital structure an aggregated result of successive financial decisions. Previous studies find evidence both supporting and contradicting the two theories. We examine the role and importance of different firm characteristics as well as to what extent managers in Swedish firms make capital structure choices in accordance with the theories and are affected by concepts like optimal capital structure, financial hierarchy, windows of opportunity, signalling, asymmetric information and flexibility. Our conclusion is that capital structure choices are built on a balancing notion suggesting a revised trade-off theory or alternatively an extended pecking order theory also incorporating agency costs and signalling.
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