Smant, David J. C.
Has the European Central Bank Followed a Bundesbank Policy? Evidence from the Early years
Bikker, Jacob A.
Efficiency and Cost Differences Across Countries in a Unified European Banking Market
Masciandaro, Donato
Why Shylock Can be Efficient - A Theory of Usury Contracts
Grunert, Jens and Schiereck, Dirk
Marktreaktionen und Bilanzstruktur bei Kapitalerhöhungen am Neuen Markt
Bruinshoofd, Allard and Diederen, Bert and Letterie, Wilko
Internal Capital Markets in Dutch Firms
Reports
Vaubel, Roland
Geschichtsforschungen zu dem Buch von Kenneth Dyson und Kevin Featherstone "The Road to Maastricht"
Graff, Michael
Finanzielle Entwicklung und reales Wirtschaftswachstum (Jürgen Ehlgen)
Smant, David J. C.
"Has the European Central Bank Followed a Bundesbank Policy? Evidence from the Early Years"
This paper compares the actual Euro- area money- market interest rate with a hypothetical rate derived from the pre- 1999 Bundesbank reaction function. The conclusion is that, after an initial period of lower than expected interest rates, the EBC has at least since mid- 2000 set the interest rate consistent with the Bundesbank’s old policy rule. (JEL E 58, E 43)
top
Bikker, Jacob A.
"Efficiency and Cost Differences Across Countries"
This article seeks to discover the level and spread of bank efficiency in the EU, which in the light of the current and expected increase in competition in Europe is of vital importance for welfare- related public policy toward market structure and conduct. In particular, this study focuses on differences across countries, variously sized banks (reflecting distinct market segments), various banking categories and over time. Two related but diverging dimensions of efficiency are considered: X- efficiency, measuring managerial ability, and cost level differences, reflecting national economic and institutional conditions with respect to supervisory rules, government interference, customer preferences and level of development. On average, cost levels of banks in Luxembourg appear to be 20% below the European average and cost levels in Spain and Greece are 30% higher. The X- Inefficiency results are similar, be it that the spread is somewhat smaller. Large banks are twice as inefficient as small banks; apparently, shortcomings in managerial ability reveal themselves more readily in large financial institutions. Inefficiencies in 1997 are nearly 45% lower than in 1990; evidently, over time, deregulation, liberalisation and ongoing financial and monetary integration have increased competitive pressures and forced European banks to operate more economically. The analysis provides evidence that X- efficiency estimates in the single- country studies, often found in the literature, can be highly misleading. The large spread in inefficiencies and cost levels indicates that the process of scaling up and rationalisation to be prepared for increased foreign competition, is - for at least part of the banks - has only just begun.(JEL F 36,G 21, G 34)
top
Masciandaro, Donato
"Why Shylock can be efficient? A Theory of Usury Contracts"
In this paper we demonstrate the characteristic of usury contracts in respect to bank loan contracts. Traditionally usury is an inefficient result of credit market failures. On the contrary in our dynamic micro model, usury can be more efficient than the bank loan contract because debt renegotiations are more likely to be implemented, given specific features of the illegal usurer technology and an entrepreneur’s decreasing risk aversion. We also show that a high level of interest rate does not represent a necessary or a sufficient condition for the existence of usury contracts.(JEL K 40, K 42, K 14, G 18)
top
Grunert, Jens and Schiereck, Dirk
"Market Response and Balance- sheet Structures with Capital Increases in the Neuer Markt"
Characteristic of the segment of the German stock exchange named Neuer Markt (new market) are shares expected to show especially dynamic growth perspectives. To fund their operations, fats growing enterprises require additional equity fairly often, by comparison. As a result, a large number of capital increase operations must be expected for enterprises belonging to this segment of the market, and - indeed - there is corresponding evidence to this effect.
On the one hand, this analysis shows the way share prices respond when new- market enterprises announce capital increases as well as the performance of these shares before and after the implementation of the measure. On the other hand, the analysis addresses the balance- sheet structure in a period close to the capital increase and examines inter alia the question to what extend a targeted use is made of balance sheet- political instruments in order to communicate an image of the borrowing enterprise that is as attractive as possible for the purposes of the capital increase.
top
Bruinshoofd, Allard and Diederen, Bert and Letterie, Wilko
"Internal Capital Markets in Dutch Firms"
Using Dutch segment- level data for the 1995- 1998 period, we investigate the presence of internal capital markets. Our findings are as follows. First, we find evidence of internal capital markets in diversified firms. Second, the investment of a segment of a firm that houses a financial holding or a segment related to financial institutions exhibits significant sensitivity to the cash flows of the firm’s other segments, but is insignificantly related to its own cash flow. This finding does suggest the presence of a internal capital market. Third and last, segments of heavily indebted firms display a significant sensitivity of investment to their own cash flows only and the investment of segments of lightly indebted firms is solely related to the segments’ investment opportunities.(JEL G 20, G 31, G 32, L 20)"
top