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Professor Dr Andre Guettler

Professor Dr Andre Guettler
Current Position

since 6/16

Research Professor

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

since 4/13

Director of the Institute of Strategic Management and Finance

Ulm University

Research Interests
  • real implications of financial regulation
  • access to credit for small and medium sized firms

Andre Guettler joined the institute as a Research Professor in June 2016. His research focuses on financial intermediation with particular emphasis on the real effects of financial regulation, competition between banks, access to credit, and credit rating agencies.

Andre Guettler holds the position of Director of the Institute of Strategic Management and Finance at Ulm University.

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Professor Dr Andre Guettler
Professor Dr Andre Guettler
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Publications

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Public Bank Guarantees and Allocative Efficiency

Reint E. Gropp Andre Guettler Vahid Saadi

in: Journal of Monetary Economics, December 2020

Abstract

A natural experiment and matched bank/firm data are used to identify the effects of bank guarantees on allocative efficiency. We find that with guarantees in place unproductive firms receive larger loans, invest more, and maintain higher rates of sales and wage growth. Moreover, firms produce less productively. Firms also survive longer in banks’ portfolios and those that enter guaranteed banks’ portfolios are less profitable and productive. Finally, we observe fewer economy-wide firm exits and bankruptcy filings in the presence of guarantees. Overall, the results are consistent with the idea that guaranteed banks keep unproductive firms in business for too long.

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Financial Incentives and Loan Officer Behavior: Multitasking and Allocation of Effort under an Incomplete Contract

Patrick Behr Alejandro H. Drexler Reint E. Gropp Andre Guettler

in: Journal of Financial and Quantitative Analysis, No. 4, 2020

Abstract

We investigate the implications of providing loan officers with a nonlinear compensation structure that rewards loan volume and penalizes poor performance. Using a unique data set provided by a large international commercial bank, we examine the main activities that loan officers perform: loan prospecting, screening, and monitoring. We find that when loan officers are at risk of losing their bonuses, they increase prospecting and monitoring. We further show that loan officers adjust their behavior more toward the end of the month when bonus payments are approaching. These effects are more pronounced for loan officers with longer tenures at the bank.

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The Case for a European Rating Agency: Evidence from the Eurozone Sovereign Debt Crisis

Marc Altdörfer Carlos A. De las Salas Vega Andre Guettler Gunter Löffler

in: Journal of International Financial Markets, Institutions and Money, 2019

Abstract

Politicians frequently voice that European bond issuers would benefit from the presence of a Europe-based rating agency. We take Fitch as a prototype for such an agency. With its ownership structure and a headquarter in London, Fitch is more European than Moody’s and S&P; during the Eurozone sovereign debt crisis, it also issued more favorable ratings. Fitch’s rating actions, however, were largely ignored by the bond market. Our results thus cast doubt on the benefits of a European credit rating agency.

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Working Papers

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Do Public Bank Guarantees Affect Labor Market Outcomes? Evidence from Individual Employment and Wages

Laura Baessler Georg Gebhardt Reint E. Gropp Andre Guettler Ahmet Taskin

in: IWH Discussion Papers, No. 7, 2024

Abstract

We investigate whether employees in Germany benefit from public bank guarantees in terms of employment probability and wages. To that end, we exploit the removal of public bank guarantees in Germany in 2001 as a quasi-natural experiment. Our results show that bank guarantees lead to higher employment, but lower wage prospects for employees after working in affected establishments. Overall the results suggest that employees do not benefit from bank guarantees.

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Bitcoin Flash Crash on May 19, 2021: What Did Really Happen on Binance?

Tim Baumgartner Andre Guettler

in: IWH Discussion Papers, No. 25, 2022

Abstract

Bitcoin plunged by 30% on May 19, 2021. We examine the outage the largest crypto exchange Binance experienced during the crash, when it halted trading for retail clients and stopped providing transaction data. We find evidence that Binance back-filled these missing transactions with data that does not conform to Benford‘s Law. The Bitcoin futures price difference between Binance and other exchanges was seven times larger during the crash period compared to a prior reference period. Data manipulation is a plausible explanation for our findings. These actions are in line with Binance aiming to limit losses for its futures-related insurance fund.

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