What types of policy intervention had a greater impact during the financial crisis? By using a detailed dataset of worldwide policy, we answer this question focusing on Globally-Systemically Important banks (G-SIBs), looking both to stock returns and Credit Default Swap (CDS) spreads reactions. As robustness checks, we also analyze a control sample of 31 large Non-Financial Companies (NFCs). Overall, we show that different policy interventions from governments and central banks have produced diverse market reactions: investors generally appreciate monetary policy interventions for G-SIBs (but not for NFCs) and do not welcome bank failures and bailouts (for both G-SIBs and NCFs).

Fiordelisi, F., & Ricci, O. (2016). “Whatever it takes”: An Empirical Assessment of the Value of Policy Actions in Banking. REVIEW OF FINANCE, 20(6), 2321-2347.

“Whatever it takes”: An Empirical Assessment of the Value of Policy Actions in Banking

FIORDELISI, FRANCO;RICCI, Ornella
2016

Abstract

What types of policy intervention had a greater impact during the financial crisis? By using a detailed dataset of worldwide policy, we answer this question focusing on Globally-Systemically Important banks (G-SIBs), looking both to stock returns and Credit Default Swap (CDS) spreads reactions. As robustness checks, we also analyze a control sample of 31 large Non-Financial Companies (NFCs). Overall, we show that different policy interventions from governments and central banks have produced diverse market reactions: investors generally appreciate monetary policy interventions for G-SIBs (but not for NFCs) and do not welcome bank failures and bailouts (for both G-SIBs and NCFs).
Fiordelisi, F., & Ricci, O. (2016). “Whatever it takes”: An Empirical Assessment of the Value of Policy Actions in Banking. REVIEW OF FINANCE, 20(6), 2321-2347.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11590/283910
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