Why Do Banks Provide Leasing?
D. Bülbül, Felix Noth, M. Tyrell
Journal of Financial Services Research,
No. 2,
2014
Abstract
Banks are engaging in leasing activities at an increasing rate, which is demonstrated by aggregated data for both European and U.S. banking companies. However, little is known about leasing activities at the bank level. The contribution of this paper is the introduction of the nexus of leasing in banking. Beginning from an institutional basis, this paper describes the key features of banks’ leasing activities using the example of German regional banks. The banks in this sample can choose from different types of leasing contracts, providing the banks with a degree of leeway in conducting business with their clients. We find a robust and significant positive impact of banks’ leasing activities on their profitability. Specifically, the beneficial effect of leasing stems from commission business in which the bank acts as a middleman and is not affected by the potential defaults of customers.
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The Impact of Institutional and Social Characteristics on Foreign Direct Investment: Evidence from Japan
Stefan Eichler, Alexander Karmann, N. Lucke
Annals of Financial Economics,
No. 2,
2013
Abstract
We examine the determinants of Japanese foreign direct investment (FDI) focusing on institutional and social factors. Using panel data on 59 countries from 1995 to 2008, we find that host countries with free and open markets and greater cultural distance from Japan attract Japanese FDI. Good institutions, such as a well-developed legal framework and an effective government, are important in promoting Japanese FDI to emerging economies, whereas fewer regulatory restrictions, lower tax burden, and more religious diversity attract Japanese FDI to developed countries. We find that corruption stimulates Japanese FDI to developed countries, which is contrary to most previous research.
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16.12.2013 • 42/2013
Ein entscheidendes Jahr für die Banken
Die akute Phase der Finanzkrise scheint überwunden. Doch viele Banken sind noch durch Altkredite belastet, deren tatsächlicher Wert unsicher ist. Für Claudia Buch, Präsidentin des Instituts für Wirtschaftsforschung Halle (IWH), besteht die entscheidende Aufgabe des kommenden Jahres darin, Umfang und Abschreibungsbedarf dieser notleidenden Kredite umfassend zu erheben und dabei offenbarte Kapitallücken zu schließen. Gelingt den Banken dies nicht aus eigener Kraft, sieht sie die Mitgliedstaaten in der Verantwortung. Nur wenn der Bankensektor zuvor von seinen Altlasten befreit wird, so Claudia Buch in ihrem Kommentar, kann die europäische Bankenunion im Jahr 2015 glaubwürdig starten.
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MNEs and Regional R&D Co-operation: Evidence from Post-Transition Economies
Andrea Gauselmann
Grincoh Working Papers,
2013
Abstract
The aim of this paper is to contribute to the literature by investigating the determinants of R&D co-operation between MNEs’ foreign subsidiaries and enterprises in the region of location, thereby leading to a better understanding which firm- and region-specific factors influence this co-operation behavior. Applying a logit model, this paper investigates which firm- and region-specific determinants influence technological cooperation between foreign subsidiaries and suppliers, customers, and research institutions in the region of location. Results suggest that especially the foreign subsidiary’s mandate in terms of R&D, its internal technological embeddedness, its technological capability but also the regional knowledge stock are positively associated with these co-operations. The analysis focuses on post-transition economies, using the example of five selected CEE countries and East Germany. We exploit a unique dataset - the IWH FDI Micro database - which holds information on 1,245 foreign subsidiaries in this region.
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The Ex Ante versus Ex Post Effect of Public Guarantees
H. Evren Damar, Reint E. Gropp, Adi Mordel
D. Evanoff, C. Holthausen, G. Kaufman and M. Kremer (eds), The Role of Central Banks in Financial Stability: How has it Changed? World Scientific Studies in International Economics 30,
2013
Abstract
In October 2006, Dominion Bond Rating Service (DBRS) introduced new ratings for banks that account for the potential of government support. The rating changes are not a reflection of any changes in the respective banks’ credit fundamentals. We use this natural experiment to evaluate the consequences of bail out expectations for bank behavior using a difference in differences approach. The results suggest a striking difference between the effects of bail out probabilities during calm times (“ex ante”) versus during crisis times (“ex post”). During calm times, higher bail-out probabilities result in higher risk taking, consistent with the moral hazard view and much of the empirical literature. However, in crisis times, we find that banks with higher bail out probabilities tend to increase their risk taking less compared to banks that were ex ante unlikely to be bailed-out. Charter values are one part of the explanation: Supported banks may have a funding advantage relative to non-supported banks during the crisis. However, we cannot rule out that other factors also may be playing a role, including tighter supervision of supported banks in crisis times.
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What Do We Learn from Schumpeterian Growth Theory?
Philippe Aghion, Ufuk Akcigit, Peter Howitt
P. Aghion, S. N. Durlauf (Hrsg.), Handbook of Economic Growth, Band 2B, Amsterdam: North Holland,
2014
Abstract
Schumpeterian growth theory has operationalized Schumpeter’s notion of creative destruction by developing models based on this concept. These models shed light on several aspects of the growth process that could not be properly addressed by alternative theories. In this survey, we focus on four important aspects, namely: (i) the role of competition and market structure; (ii) firm dynamics; (iii) the relationship between growth and development with the notion of appropriate growth institutions; and (iv) the emergence and impact of long-term technological waves. In each case, Schumpeterian growth theory delivers predictions that distinguish it from other growth models and which can be tested using micro data.
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Has Labor Income Become More Volatile? Evidence from International Industry-Level Data
Claudia M. Buch
German Economic Review,
No. 4,
2013
Abstract
Changes in labor market institutions and the increasing integration of the world economy may affect the volatility of capital and labor incomes. This article documents and analyzes changes in income volatility using data for 11 industrialized countries, 22 industries and 35 years (1970–2004). The article has four main findings. First, the unconditional volatility of labor income has declined in parallel to the decline in macroeconomic volatility. Second, the industry-specific, idiosyncratic component of labor income volatility has hardly changed. Third, cross-sectional heterogeneity is substantial. If anything, the labor incomes of high- and low-skilled workers have become more volatile relative to the volatility of capital incomes. Fourth, the volatility of labor income relative to the volatility of capital income declines in the labor share. Trade openness has no clear-cut impact.
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Towards Deeper Financial Integration in Europe: What the Banking Union Can Contribute
Claudia M. Buch, T. Körner, Benjamin Weigert
IWH Discussion Papers,
No. 13,
2013
Abstract
The agreement to establish a Single Supervisory Mechanism in Europe is a major step towards a Banking Union, consisting of centralized powers for the supervision of banks, the restructuring and resolution of distressed banks, and a common deposit insurance system. In this paper, we argue that the Banking Union is a necessary complement to the common currency and the Internal Market for capital. However, due care needs to be taken that steps towards a Banking Union are taken in the right sequence and that liability and control remain at the same level throughout. The following elements are important. First, establishing a Single Supervisory Mechanism under the roof of the ECB and within the framework of the current EU treaties does not ensure a sufficient degree of independence of supervision and monetary policy. Second, a European institution for the restructuring and resolution of banks should be established and equipped with sufficient powers. Third, a fiscal backstop for bank restructuring is needed. The ESM can play a role but additional fiscal burden sharing agreements are needed. Direct recapitalization of banks through the ESM should not be possible until legacy assets on banks’ balance sheets have been cleaned up. Fourth, introducing European-wide deposit insurance in the current situation would entail the mutualisation of legacy assets, thus contributing to moral hazard.
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28.10.2013 • 37/2013
Institut für Wirtschaftsforschung Halle erhält Auszeichnung für Chancengleichheit
28.10.2013 – Das IWH wurde als eine von 59 Organisationen aus Wirtschaft, Wissenschaft, Verwaltung und Verbänden am Montag in Stuttgart für Chancengleichheit in der Personalpolitik ausgezeichnet. In ihrer Begründung würdigt die Jury insbesondere die vielfältigen Maßnahmen, mit denen das Institut die Vereinbarkeit von Beruf und Familie sowie ein partnerschaftliches Betriebsklima unterstützt.
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23.10.2013 • 35/2013
Rekommunalisierung ist kein Königsweg!
Der jahrelange Trend, kommunale Einrichtungen wie Wohnungsgesellschaften oder Versorgungsunternehmen zu privatisieren, scheint sich umzukehren. Die Hamburger Bürger haben jüngst per Volksentscheid Ihrem Senat aufgetragen, die an die Konzerne Vattenfall und E.on verkauften Energieversorgungsnetze der Stadt wieder vollständig in städtischen Besitz zu bringen. Martin Rosenfeld, Stadtökonom am Institut für Wirtschaftsforschung Halle (IWH), unterzieht in seinem Kommentar die mit der Rekommunalisierung verbundenen Hoffnungen auf Gesundung der kommunalen Haushalte einer kritischen Beurteilung.
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