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Professor Dr Daniel Streitz

Professor Dr Daniel Streitz
Current Position

since 1/23

Head of the Research Group Financial Intermediaries and the Real Economy

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

since 4/21

Senior Research Advisor of the Departments Financial Markets and Laws, Regulations and Factor Markets

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

since 4/21

Professor of Economics

Friedrich Schiller University Jena

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Research Interests
  • financial intermediation
  • corporate finance
  • monetary policy

Daniel Streitz joined the institute as a Senior Research Advisor in April 2021. He is Professor at Friedrich Schiller University Jena. His research focuses on financial intermediation and corporate finance.

Daniel Streitz received his diploma from University of Münster and his PhD from Humboldt-Universität zu Berlin. Prior to joining IWH, he was Assistant Professor at Copenhagen Business School.

Your contact

Professor Dr Daniel Streitz
Professor Dr Daniel Streitz
- Department Financial Markets
Send Message +49 345 7753-735 Personal page

Publications

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Credit Supply Shocks: Financing Real Growth or Takeovers?

Tobias Berg Daniel Streitz Michael Wedow

in: Review of Corporate Finance Studies, No. 2, 2024

Abstract

How do firms invest when financial constraints are relaxed? We document that firms affected by a large positive credit supply shock predominantly increase borrowing for transaction-based purposes. These treated firms have larger asset and employment growth rates; however, growth entirely stems from the increased takeover activity. Announcement returns indicate a low quality of the credit-supply-induced takeover activity. These results offer the possibility that credit-driven growth can simply reflect redistribution, rather than net gains in assets or employment.

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Financial Debt Contracting and Managerial Agency Problems

Björn Imbierowicz Daniel Streitz

in: Financial Management, No. 1, 2024

Abstract

This paper analyzes if lenders resolve managerial agency problems in loan contracts using sweep covenants. Sweeps require a (partial) prepayment when triggered and are included in many contracts. Exploiting exogenous reductions in analyst coverage due to brokerage house mergers and closures, we find that increased borrower opacity significantly increases sweep use. The effect is strongest for borrowers with higher levels of managerial entrenchment and if lenders hold both debt and equity in the firm. Overall, our results suggest that lenders implement sweep covenants to mitigate managerial agency problems by limiting contingencies of wealth expropriation.

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Spillover Effects in Empirical Corporate Finance

Tobias Berg Markus Reisinger Daniel Streitz

in: Journal of Financial Economics, No. 3, 2021

Abstract

Despite their importance, the discussion of spillover effects in empirical research often misses the rigor dedicated to endogeneity concerns. We analyze a broad set of workhorse models of firm interactions and show that spillovers naturally arise in many corporate finance settings. This has important implications for the estimation of treatment effects: i) even with random treatment, spillovers lead to a complicated bias, ii) fixed effects can exacerbate the spillover-induced bias. We propose simple diagnostic tools for empirical researchers and illustrate our guidance in an application.

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Working Papers

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Too Poor to Be Green? The Effects of Wealth on the Residential Heating Transformation

Tobias Berg Ulf Nielsson Daniel Streitz

in: SSRN Working Paper, 2024

Abstract

Using the near-universe of Danish owner-occupied residential houses, we show that an exogenous increase in wealth significantly increases the likelihood to switch to green heating. We estimate an elasticity of one at the median of the wealth distribution, i.e., a 10% increase in wealth increase raises green heating adoption by 10%. Effects are heterogeneous along the wealth distribution: all else equal, a redistribution of wealth from rich households to poor households can significantly increase green heating adoption. We further explore potential channels of our findings (pro-social preferences, financial constraints, and luxury goods interpretation). Our results emphasize the role of economic growth for the green transition.

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Out of Sight, out of Mind: Divestments and the Global Reallocation of Pollutive Assets

Tobias Berg Lin Ma Daniel Streitz

in: SSRN Working Papers, 2023

Abstract

Large emitters reduced their carbon emissions by around 11-15% after the 2015 Paris Agreement (“the Agreement”) relative to public firms that are less in the limelight. We show that this effect is predominantly driven by divestments. Large emitters are 9 p.p. more likely to divest pollutive assets in the post-Agreement period, an increase of over 75%. This divestment effect comes from asset sales and not from closures of pollutive facilities. There is no evidence for increased engagements in other emission reduction activities. Our results indicate significant global asset reallocation effects after the Agreement, shifting emissions out of the limelight.

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Corporate Loan Spreads and Economic Activity

Anthony Saunders Alessandro Spina Sascha Steffen Daniel Streitz

in: SSRN Working Paper, 2021

Abstract

We use secondary corporate loan-market prices to construct a novel loan-market-based credit spread. This measure has considerable predictive power for economic activity across macroeconomic outcomes in both the U.S. and Europe and captures unique information not contained in public market credit spreads. Loan-market borrowers are compositionally different and particularly sensitive to supply-side frictions as well as financial frictions that emanate from their own balance sheets. This evidence highlights the joint role of financial intermediary and borrower balance-sheet frictions in understanding macroeconomic developments and enriches our understanding of which type of financial frictions matter for the economy.

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Topics

Regulation Financial Institutions Corporate Finance Policy Evaluation Financial Markets Econometrics
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