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Titel:

Does contingent capital induce excessive risk-taking?

Dokumenttyp:
Zeitschriftenaufsatz
Autor(en):
Berg, Tobias; Kaserer, Christoph
Nicht-TUM Koautoren:
ja
Kooperation:
national
Abstract:
In this paper, we analyze the effect of the conversion price of CoCo bonds on equity holders’ incentives. First, we use an option-pricing context to show that CoCo bonds can magnify equity holders’ incentives to increase the riskiness of assets and decrease incentives to raise new equity in a crisis in cases in which conversion transfers wealth from CoCo bond holders to equity holders. Second, we present a clinical study of the CoCo bonds issued so far. We show that (i) almost all existing CoCo...     »
Stichworte:
Contingent capital; Banking regulation; Risk-taking incentives; Asset substitution; Debt overhang; Credit crunch
Dewey Dezimalklassifikation:
330 Wirtschaft
Intellectual Contribution:
Discipline-based Research
Zeitschriftentitel:
Journal of Financial Intermediation
Journal gelistet in FT50 Ranking:
nein
Jahr:
2015
Band / Volume:
24
Jahr / Monat:
2015-07
Heft / Issue:
3
Seitenangaben Beitrag:
356-385
Sprache:
en
Volltext / DOI:
doi:10.1016/j.jfi.2014.11.002
Urteilsbesprechung:
0
Key publication:
Ja
Peer reviewed:
Ja
International:
Ja
Book review:
Nein
commissioned:
not commissioned
Professional Journal:
Nein
Interdisziplinarität:
Nein
Leitbild:
;
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