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Professor Dr Felix Noth

Professor Dr Felix Noth
Current Position

since 10/16

Deputy Head of the Department of Financial Markets

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

since 3/14

Head of the Research Group Financial System Adaptability and Resilience

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

since 7/20

Professor for Banking and Financial Systems

Otto von Guericke University Magdeburg

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Research Interests
  • banking markets and real sector growth
  • banking regulation and risk-taking of banks
  • natural disasters and consequences for banks and banking markets

Felix Noth is a member of the Department of Financial Markets at IWH since March 2014 and Professor for Banking and Financial Systems at Otto von Guericke University Magdeburg. His research focuses on empirical banking and finance.

Felix Noth earned a diploma from LMU Munich and received his PhD from Goethe University Frankfurt. Prior to joining IWH, he held the position of PostDoc at Goethe University Frankfurt.

Your contact

Professor Dr Felix Noth
Professor Dr Felix Noth
- Department Financial Markets
Send Message +49 345 7753-702 Personal page

Publications

Citations
1069

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Church Membership and Economic Recovery: Evidence from the 2005 Hurricane Season

Iftekhar Hasan Stefano Manfredonia Felix Noth

in: Economic Journal, forthcoming

Abstract

<p>This paper investigates the critical role of church membership in the process of economic recovery after high-impact natural disasters. We document a significant adverse treatment effect of the 2005 hurricane season in the Southeastern United States on establishment-level productivity. However, we find that establishments in counties with higher rates of church membership saw a significantly stronger recovery in terms of productivity for 2005–10. We also show that church membership is correlated with post-disaster entrepreneurship activities and population growth.</p>

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Nothing Special about an Allowance for Corporate Equity: Evidence from Italian Banks

Dennis Dreusch Felix Noth Peter Reichling

in: Journal of International Money and Finance, February 2025

Abstract

<p>This paper analyzes the impact of reduced tax incentives for equity financing on banks' regulatory capital ratios under the Basel III regime. We are particularly interested in a recent interest rate cut in the Italian corporate equity allowance, which reduces the relative tax advantage of equity financing. The results show that banks respond to this increased tax disparity by significantly reducing their regulatory capital while at the same time reducing their risk-taking. The decline in capital is more pronounced for small banks and outweighs the initial capital gains from the introduction of this tax instrument. Our results challenge the use of equity allowances, in that financial stability gains persist only as long as costly tax subsidies remain intact and diminish as the size of the subsidy is reduced.</p>

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Does IFRS Information on Tax Loss Carryforwards and Negative Performance Improve Predictions of Earnings and Cash Flows?

Sandra Dreher Sebastian Eichfelder Felix Noth

in: Journal of Business Economics, January 2024

Abstract

We analyze the usefulness of accounting information on tax loss carryforwards and negative performance to predict earnings and cash flows. We use hand-collected information on tax loss carryforwards and corresponding deferred taxes from the International Financial Reporting Standards tax footnotes for listed firms from Germany. Our out-of-sample tests show that considering accounting information on tax loss carryforwards does not enhance performance forecasts and typically even worsens predictions. The most likely explanation is model overfitting. Besides, common forecasting approaches that deal with negative performance are prone to prediction errors. We provide a simple empirical specification to account for that problem.

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Working Papers

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From Shares to Machines: How Common Ownership Drives Automation

Joseph Emmens Dennis Hutschenreiter Stefano Manfredonia Felix Noth Tommaso Santini

in: IWH Discussion Papers, No. 23, 2024

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Banking Market Deregulation and Mortality Inequality

Iftekhar Hasan Thomas Krause Stefano Manfredonia Felix Noth

in: Bank of Finland Research Discussion Papers, No. 14, 2022

Abstract

This paper shows that local banking market conditions affect mortality rates in the United States. Exploiting the staggered relaxation of branching restrictions in the 1990s across states, we find that banking deregulation decreases local mortality rates. This effect is driven by a decrease in the mortality rate of black residents, implying a decrease in the black-white mortality gap. We further analyze the role of mortgage markets as a transmitter between banking deregulation and mortality and show that households' easier access to finance explains mortality dynamics. We do not find any evidence that our results can be explained by improved labor outcomes.

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A Note on the Use of Syndicated Loan Data

Isabella Müller Felix Noth Lena Tonzer

in: IWH Discussion Papers, No. 17, 2022

Abstract

<p>Syndicated loan data provided by DealScan is an essential input in banking research. This data is rich enough to answer urging questions on bank lending, e.g., in the presence of financial shocks or climate change. However, many data options raise the question of how to choose the estimation sample. We employ a standard regression framework analyzing bank lending during the financial crisis of 2007/08 to study how conventional but varying usages of DealScan affect the estimates. The key finding is that the direction of coefficients remains relatively robust. However, statistical significance depends on the data and sampling choice and we provide guidelines for applied research.</p>

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Topics

Financial Stability Financial Markets Policy Evaluation Monetary Policy Risk Regulation Financial Institutions Econometrics Green Transition
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