2004), “Loan Pricing under Basel Capital Requirements (2009)
Rafael Repullo, Javier Suarez, Xavier Freixas, Luc Laeven, Guillaume Plantin, Jesús Saurina, ...
We analyze the loan pricing implications of the reform of bank capital regulation known as Basel II. We consider a perfectly competitive market for business loans where, as in the model underlying...
The Impact of Organizational Structure and Lending Technology on Banking Competition (2009)
Degryse, Hans, Laeven, Luc, Ongena, Steven
We investigate how bank organization shapes banking competition. We show that a bank's geographical lending reach and loan pricing strategy is determined by its own and its rivals’ organizational...
Giannetti, Mariassunta, Laeven, Luc
Sweden offers a unique natural experiment to analyze the effects of institutionalized saving on the ownership structure, corporate governance, and firm performance. The Swedish pension reform...
Complex Ownership Structures and Corporate Valuations (2008)
The bulk of corporate governance theory examines the agency problems that arise from two extreme ownership structures: 100% small shareholders or one large, controlling owner combined with small...
The Political Economy of Deposit Insurance (2007)
Abstract: We use a political economy framework to study differences in the support for explicit deposit insurance across countries. Overall, we find mixed evidence of the significance of the public...
The Impact of Bank Regulations, Concentration, and Institutions on Bank Margins (2007)
Aslı Demirgüç-kunt, Luc Laeven, Ross Levine
Abstract: This paper examines the impact of bank regulations, concentration, inflation and national institutions on bank net interest margins using data on over 1,400 banks across 72 countries while...
Firms as Financial Intermediaries: Evidence from Trade Credit Data (2007)
Asli Demirgüç-kunt, Vojislav Maksimovic, Jerry Caprio, Simeon Djankov, Luc Laeven
In this paper, we argue that non-financial firms act as intermediaries channeling short-term funds from the financial institutions in an economy to the their greatest use. Non-financial firms act in...
Firms as Financial Intermediaries: Evidence from Trade Credit Data (2007)
Asli Demirguc-kunt, Vojislav Maksimovic, Jerry Caprio, Simeon Djankov, Luc Laeven
In this paper, we argue that non-financial firms act as intermediaries channeling short-term funds from the financial institutions in an economy to the their greatest use. Non-financial firms act in...
2001a, Financial and Legal Constraints to Firm Growth: Does Size Matter? World Bank Mimeo (2007)
Thorsten Beck, Asli Demirgüç-kunt, Vojislav Maksimovic, George Clarke, Simeon Djankov, Luc Laeven
Abstract: Using a unique firm-level survey data base covering 54 countries, we investigate whether different financial, legal and corruption issues firms report as constraints actually affect their...
This paper examines the effect of geographic and industrial diversification on firm value for a sample of 1,914 corporations from 18 countries. Our results indicate that both geographic and product...
World Bank Comments Welcome (2007)
Luc Laeven, Jerry Caprio, Stijn Claessens, Gaston Gelos, Inessa Love, Pieter Van Oijen, ...
We use panel data on a large number of firms in 13 developing countries to find out whether financial liberalization relaxes financing constraints of firms. We find that liberalization affects small...
Wink and Karl-Heinz Hillen from the German Bundesbank, Joergen Bang from the (2007)
Thorsten Beck, German Bank Association, Charles Calomiris, Gerard Caprio, Aslı Demirgüç-kunt, Udo Franke, ...
Abstract: This paper describes and evaluates the deposit insurance scheme set up by private commercial banks in Germany in 1975. Unlike schemes in other countries, its funding and management is...
Financial Crises, Financial Dependence, and Industry Growth (2007)
Luc Laeven, Daniela Klingebiel, Y Kroszner
This paper investigates the linkage between financial crises and industry growth. We analyze data from 19 developed and developing countries that have experienced financial crises during the last 30...
Stock Market Responses to Bank Restructuring Policies during the East Asian Crisis (2007)
Daniela Klingebiel, Randy Kroszner, Luc Laeven, Pieter Van Oijen
This paper studies the effects of financial restructuring announcements on short-term stock returns of banks and non-financial companies during the East Asian crisis. We find that the prices of bank...
Banking on Foreigners: The Behavior of International Bank Lending to Latin America, (2007)
Maria Soledad, Martinez Peria, Andrew Powell, Ivanna Vladkova Hollar, Jel G N, Graciela Kaminsky, ...
Rising international bank financing to developing countries has motivated a debate on the behavior of these claims. We analyze claims from seven home (lender) countries on ten host (borrower)...
The Political Economy of Deposit Insurance (2007)
Luc Laeven, World Bank, George Hanc, Jim Hanson, Lemma Senbet, Phil Strahan, ...
Abstract: This paper uses a political economy framework to analyze cross-country differences in deposit insurance coverage. It finds supporting evidence of the significance of private interest...
The impact of organizational structure and lending technology on banking competition (2006)
Degryse, Hans, Laeven, Luc, Ongena, Steven
Recent theoretical models argue that a bank's organizational structure reflects its lending technology. A hierarchically organized bank will employ mainly hard information, whereas a decentralized...
Charles Amo Yartey, Prepared Charles, Amo Yartey, Eswar Prasad, Giovanni Dell Ariccia, Luc Laeven, ...
This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF...
What Drives Bank Competition? Some International Evidence (2004)
Claessens, Stijn., Laeven, Luc.
Journal of Money, Credit, and Banking - Volume 36, Number 3 (Part 2), June 2004
Regulations, Market Structure, Institutions, and the Cost of Financial Intermediation (2004)
Journal of Money, Credit, and Banking - Volume 36, Number 3 (Part 2), June 2004
Financial development, property rights, and growth (2003)
This paper analyzes how property rights affect the allocation of firms ’ available resources among different types of assets. In particular, we investigate empirically for a large number of...
Formulae for the singularities at infinity of plane algebraic curves (submitted (2003)
Luc Laeven, Giovanni Majnoni, To Franklin Allen
Abstract: Only recently the debate on bank capital regulation has devoted specific attention to the role that bank loan loss provisions can play as a part of the overall minimum capital regulatory...
Governance and bank valuation (2003)
Gerard Caprio, Luc Laeven, Ross Levine, Thorsten Beck, George Benston, Sugato Bhattacharyya, ...
Which public policies and ownership structures enhance the governance of banks? This paper constructs a new database on the ownership of banks internationally and then assesses the ramifications of...
Essays on financial intermdiation in developing countries / (2001)
Thesis (Ph. D.)--Universiteit van Amsterdam, 2001.
Confidence Building in Emerging Stock Markets (2000)
Perotti, Enrico C., Laeven, Luc, Oijen, Pieter Van
Investor confidence is a major determinant of financial integration for emerging markets and their stock prices. We investigate whether privatization also has a significant effect on emerging stock...
Is There a Diversification Discount in Financial Conglomerates?
This paper investigates whether the diversity of activities conducted by financial institutions influences their market valuations. We find that there is a diversification discount: The market values...
The political economy of deposit insurance
The author uses a political economy framework to analyze cross-country differences in deposit insurance coverage. He finds supporting evidence of the significance of private interest theories in...
International evidence on the value of product and geographic diversity
The author examines the effect of product and geographic diversification on firm value for a sample of 1,914 corporations in 18 countries. His results indicate that both product and geographic...
Stock market responses to bank restructuring policies during the East Asian crisis
Klingebiel, Daniela, Kroszner, Randy, Laeven, Luc, Van Oijen, Pieter
The East Asian crisis began in Thailand in mid-1997 when an ailing financial sector, a slowdown in exports, and large increases in central bank credit to weak financial institutions, triggered a run...
Caprio, Gerard, Laeven, Luc, Levine, Ross
Which public policies and ownership structures enhance the governance of banks? The authors construct a new database on the ownership of banks internationally and then assess the ramifications of...
The determinants of financing obstacles
Thorsten Beck, Luc Laeven, Vojislav Maksimovic
The authors use survey data on a sample of over 10,000 firms from 80 countries to assess (1) how successful a priori classifications are in distinguishing between financially constrained and...
Finance, Firm Size, and Growth
Thorsten Beck, Asli Demirguc-Kunt, Luc Laeven, Ross Levine
This paper examines whether financial development boosts the growth of small firms more than large firms and hence provides information on the mechanisms through which financial development fosters...
Banking Crises, Financial Dependence and Growth
Klingebiel, Daniela, Kroszner, Randall S, Laeven, Luc
This paper investigates the growth impact of banking crises on industries with different levels of dependence on external sources of finance to analyze the mechanisms linking financial shocks and...
Confidence Building in Emerging Stock Markets
Enrico C. Perotti, Luc Laeven, Pieter Van Oijen
Investor confidence is a major determinant of financial integration for emerging markets and their stock prices. We investigate whether privatization also has a significant effect on emerging stock...
Banking risks around the world - the implicit safety net subsidy approach
The author calculates gross safety net subsidies for a large sample of banks in 12 countries, to assess the relationship between the risk-taking behavior of banks, and certain ban characteristics. He...
Financial development, property rights, and growth
The authors analyze how property rights affect the allocation of firms'available resources among different types of assets. In particular, they investigate empirically for a large number of countries...
What drives bank competition? some international evidence
Using bank-level data, the authors apply the Panzar and Rosse (1987) methodology to estimate the extent to which changes in input prices are reflected in revenues earned by specific banks in 50...
Financial dependence, banking sector competition, and economic growth
The relationships among competition in the financial sector, access of firms to external financing, and associated economic growth are ambiguous in theory. Moreover, measuring competition in the...
Risk and efficiency in East Asian banks
The author uses a linear programming technique (data envelopment analysis) to estimate the inefficiencies of banks in Indonesia, the Republic of Korea, Malaysia, the Philippines, and, Thailand. He...
Does judicial efficiency lower the cost of credit:
Laeven, Luc, Majnoni, Giovanni
The authors investigate the effect of judicial efficiency on banks'lending spreads for a large cross section of countries. They measure bank interest rate spreads for 106 countries at an aggregate...
Gerard Caprio, Luc Laeven, Ross Levine
Which public policies and ownership structures enhance the governance of banks? This paper constructs a new database on the ownership of banks internationally and then assesses the ramifications of...
Regulations, Market Structure, Institutions, and the Cost of Financial Intermediation.
Demirguc-Kunt, Asli, Laeven, Luc, Levine, Ross
This paper examines the impact of bank regulations, market structure, and national institutions on bank net interest margins and overhead costs using data on over 1400 banks across 72 countries while...
What Drives Bank Competition? Some International Evidence.
Using bank-level data, we apply the Panzar and Rosse (1987) methodology to estimate the extent to which changes in input prices are reflected in revenues earned by specific banks in 50 countries'...
The determinants of financing obstacles
Beck, Thorsten, Demirguc-Kunt, Asli, Laeven, Luc, Maksimovic, Vojislav
Institution Building and Growth in Transition Economies
Drawing on the recent literature on economic institutions and the origins of economic development, we offer a political economy explanation of why institution building has varied so much across...
Capital Structure and International Debt Shifting
Huizinga, Harry, Laeven, Luc, Nicodeme, Gaetan
This paper presents a model that relates a multinational firm's optimal debt policy to taxation and to non-tax factors such as the desire to prevent bankruptcy. The model yields the predictions that...
The impact of organizational structure and lending technology on banking competition
Degryse, Hans, Laeven, Luc, Ongena, Steven
Recent theoretical models argue that a bank's organizational structure reflects its lending technology. A hierarchically organized bank will employ mainly hard information, whereas a decentralized...
Financial Dependence, Banking Sector Competition, and Economic Growth
The relationships among competition in the financial sector, access of firms to external financ-ing, and associated economic growth are ambiguous in theory. Moreover, measuring competi-tion in the...
Institution building and growth in transition economies
Transition economies, Institutions, Economic development, O10, P20,
Is There a Diversification Discount in Financial Conglomerates?
This paper investigates whether the diversity of activities conducted by financial institutions influences their market valuations. We find that there is a diversification discount: The market values...
Political Connections and Preferential Access to Finance: The Role of Campaign Contributions
Claessens, Stijn, Feijen, Erik, Laeven, Luc
Using novel indicators of political connections constructed from campaign contribution data, we show that Brazilian firms that provided contributions to (elected) federal deputies experienced higher...
International Profit Shifting within European Multinationals
The conduct of business activities in two or more countries creates opportunities for international profit shifting, while international tax rate differences create incentives. Using detailed...
Capital Structure and International Debt Shifting
Luc Laeven, Gaetan Nicodeme, Harry Huizinga
This paper presents a model of a multinational firm's optimal debt policy that incorporates international taxation factors. The model yields the prediction that a multinational firm's indebtedness in...
The Invisible Hand in Corporate Governance
Chhaochharia, Vidhi, Laeven, Luc
We evaluate the impact of firm-level corporate governance provisions on the valuation of firms in a large cross-section of countries. Unlike previous work, we distinguish between governance...
Corporate Governance Quality: Trends and Real Effects
Gianni De Nicoló, Luc Laeven, Kenichi Ueda
This paper constructs a composite index of corporate governance quality, documents its evolution from 1994 through 2003 in selected emerging and developed economies, and assesses its impact on...
Complex Ownership Structures and Corporate Valuations
The bulk of corporate governance theory examines the agency problems that arise from two extreme ownership structures: 100 percent small shareholders or one large, controlling owner combined with...
Pension Reform, Ownership Structure, and Corporate Governance: Evidence from Sweden
Giannetti, Mariassunta, Laeven, Luc
Sweden offers a unique natural experiment to analyze the microeconomic effects of institutionalized saving on ownership structure, corporate governance and performance of listed companies. First, the...
Capital Structure and International Debt Shifting.
Harry Huizinga, Luc Laeven, Gaëtan Nicodème
This paper presents a model of a multinational firm’s optimal debt policy that incorporates international taxation factors. The model yields the prediction that a multinational firm’s...
Loan loss provisioning and economic slowdowns: too much too late?
Only recently the debate on bank capital regulation has devoted specific attention to the role that bank loan loss provisions can play as a part of the overall minimum capital regulatory framework....
Does Campaign Finance imply Political Favors?
Stijn Claessens, Erik Feijen, Luc Laeven
This paper provides empirical evidence that campaign contributions are strongly associated with market expectations of future firm—specific political favors, including preferential access to...
Does financial liberalization relax financing constraints on firms ?
The author uses panel data on 394 firms in 13 developing countries for the years 1988-98 to learn whether financial liberalization relaxes financing constraints on firms. He finds that liberalization...
Loan loss provisioning and economic slowdowns : too much, too late?
Laeven, Luc, Majnoni, Giovanni
Only recently has the debate on bank capital regulation devoted specific attention to the role that bank loan loss provisions can play as part of a minimum capital regulatory framework. Several...
Financial crises, financial dependence, and industry growth
Laeven, Luc, Klingebiel, Daniela, Kroszner, Randy
The authors investigate the link between financial crises and industry growth. They analyze data from 19 industrial and developing countries that have experienced financial crises during the past 30...
The author aims to provide guidelines for the pricing of deposit insurance in different countries. He presents several methodologies that can be used to set benchmarks for the pricing level of...
The impact of bank regulations, concentration, and institutions on bank margins
Demirguc, Asli, Laeven, Luc, Levine, Ross
This paper examines the impact of bank regulations, concentration, inflation, and national institutions on bank net interest margins using data from over 1,400 banks across 72 countries while...
Business environment and firm entry : Evidence from international data
Klapper, Leora, Laeven, Luc, Rajan, Raghuram
Using a comprehensive database of firms in Western and Eastern Europe, the authors study how the business environment in a country drives the creation of new firms. They focus on regulations...
The quality of the legal system, firm ownership, andfirm size
Laeven, Luc, Woodruff, Christopher
Employment in developing countries is disproportionately concentrated in very small firms. The authors examine the extent to which the distribution of firm size is related to the quality of the legal...
Resolving systemic financial crisis : policies and institutions
Claessens,Constantijn A., Klingebiel, Daniela, Laeven, Luc
The authors analyze the role of institutions in resolving systemic banking crises for a broad sample of countries. Banking crises are fiscally costly, especially when policies like substantial...
A taxonomy of financial crisis resolution mechanisms : cross-country experience
Calomiris, Charles W, Klingebiel, Daniela, Laeven, Luc
The goals of financial restructuring are to re-establish the creditor-debtor relationships upon which the economy depends for an efficient allocation of capital, and to accomplish that objective at...
Finance, firm size, and growth
Beck, Thorsten, Demirguc-Kunt, Asli, Laeven, Luc, Levine, Ross
The authors examine whether financial development boosts the growth of small firms more than large firms and hence provides information on the mechanisms through which financial development fosters...
What drives corporate governance? Firm-level evidence from Eastern Europe
Klapper, Leora F, Laeven, Luc, Love, Inessa
The authors study differences in the use of two corporate governance provisions - cumulative voting and proxy by mail voting - in a sample of 224 firms located in four Eastern European countries....
Deposit insurance around the world : a comprehensive database
Demirguc-Kunt, Asli, Karacaovali, Baybars, Laeven, Luc
This paper updates the Demirguç-Kunt and Sobaci (2001) cross-country deposit insurance database and extends it in several important dimensions. This new data set identifies both recent adopters and...
Institution building and growth in transition economies
Drawing on the recent literature on economic institutions and the origins of economic development, the authors offer a political economy explanation of why institution building has varied so much...
Determinants of deposit-insurance adoption and design
Demirguc-Kunt, Asli, Kane, Edward J., Laeven, Luc
The authors seek to identify factors that influence decisions about a country's financial safety net, using a new dataset on 170 countries covering the 1960-2003 period. Specifically, they focus on...
Resolution of failed banks by deposit insurers : cross-country evidence
There is a wide cross-country variation in the institutional structure of bank failure resolution, including the role of the deposit insurer. The authors use quantitative analysis for 57 countries...
Deposit insurance design and implementation : policy lessons from research and practice
Demirguc-Kunt, Asli, Kane, Edward J., Laeven, Luc
This paper illustrates the trends in deposit insurance adoption. It discusses the cross-country differences in design, and synthesizes the policy messages from cross-country empirical work as well as...
Financial Development, Property Rights, and Growth
In countries with more secure property rights, firms might allocate resources better and consequentially grow faster as the returns on different types of assets are more protected against...
The Impact of Organizational Structure and Lending Technology on Banking Competition
Degryse, Hans, Laeven, Luc, Ongena, Steven
Recent theoretical models argue that a bank’s organizational structure reflects its lending technology. A hierarchically organized bank will employ mainly hard information, whereas a decentralized...
How Country and Safety-Net Characteristics Affect Bank Risk-Shifting
Armen Hovakimian, Edward Kane, Luc Laeven
deposit insurance, regulatory forbearance, moral hazard, financial safety net, risk shifting, regulation.,
The Quality of the Legal System, Firm Ownership, and Firm Size
Luc Laeven, Christopher Woodruff
We show that firm size is increasing with the quality of the legal system in Mexico. A 1-standard-deviation improvement in the quality of the legal system is associated with a 0.15-0.30 standard...
What drives bank competition? Some international evidence
Using bank-level data, we apply the Panzar and Rosse (1987) methodology to estimate the extent to which changes in input prices are reflected in revenues earned by specific banks in 50 countries'...
Regulations, market structure, institutions, and the cost of financial intermediation
Asli Demirgüç-Kunt, Luc Laeven, Ross Levine
This paper examines the impact of bank regulations, market structure, and national institutions on bank net interest margins and overhead costs using data on over 1400 banks across 72 countries while...
Credit Booms and Lending Standards: Evidence From The Subprime Mortgage Market
Dell'Ariccia, Giovanni, Igan, Deniz, Laeven, Luc
This paper studies the relationship between the recent boom and current delinquencies in the subprime mortgage market. Specifically, we analyze the extent to which this relationship can be explained...
Confidence Building in Emerging Stock Markets
Laeven, Luc, Perotti, Enrico C
Investor confidence in reliable property rights and stable, market-oriented policies are a necessary condition for financial integration and the development of emerging stock markets. Announced...
Financial Development, Property Rights and Growth
This Paper investigates how the legal framework not only affects the amount of external financing available, but also firms’ resource allocation among different types of assets. Using a simple...
Business Environment and Firm Entry: Evidence from International Data
Klapper, Leora, Laeven, Luc, Rajan, Raghuram G
Using a comprehensive database of firms in Western and Eastern Europe, we study how the business environment in a country drives the creation of new firms. Our focus is on regulations governing...
Bank Risk and Deposit Insurance
Arguing that a relatively high cost of deposit insurance indicates that a bank takes excessive risks, this article estimates the cost of deposit insurance for a large sample of banks in 14 economies...
Finance, Firm Size, and Growth
THORSTEN BECK, ASLI DEMIRGUC-KUNT, LUC LAEVEN, ROSS LEVINE
Although research shows that financial development accelerates aggregate economic growth, economists have not resolved conflicting theoretical predictions and ongoing policy disputes about the...
Credit Booms and Lending Standards: Evidence from the Subprime Mortgage Market
Luc Laeven, Deniz Igan, Giovanni Dell'Ariccia
This paper links the current sub-prime mortgage crisis to a decline in lending standards associated with the rapid expansion of this market. We show that lending standards declined more in areas that...
International profit shifting within multinationals: A multi-country perspective
We model the opportunities and incentives generated by international tax differences for international profit shifting by multinationals. The model considers not only profit shifting arising from...
Political connections and preferential access to finance: The role of campaign contributions
Claessens, Stijn, Feijen, Erik, Laeven, Luc
Using novel indicators of political connections constructed from campaign contribution data, we show that Brazilian firms that provided contributions to (elected) federal deputies experienced higher...
Capital structure and international debt shifting
Huizinga, Harry, Laeven, Luc, Nicodeme, Gaetan
This paper presents a model of a multinational firm's optimal debt policy that incorporates international taxation factors. The model yields the prediction that a multinational firm's indebtedness in...
Bank Governance, Regulation, and Risk Taking
This paper conducts the first empirical assessment of theories concerning relationships among risk taking by banks, their ownership structures, and national bank regulations. We focus on conflicts...
Financial Restructuring in Banking and Corporate Sector Crises: What Policies to Pursue?
Stijn Claessens, Daniela Klingebiel, Luc Laeven
We review the literature on resolving bank and corporate sector crises to identify government policies that affect the depth of a crisis and the ease and sustainability of recovery, and to analyze...
How Country and Safety-Net Characteristics Affect Bank Risk-Shifting
Armen Hovakimian, Edward J. Kane, Luc Laeven
Risk-shifting occurs when creditors or guarantors are exposed to loss without receiving adequate compensation. This paper seeks to measure and compare how well authorities in 56 countries controlled...
Regulations, Market Structure, Institutions, and the Cost of Financial Intermediation
Asli Demirguc-Kunt, Luc Laeven, Ross Levine
This paper examines the impact of bank regulations, market structure, and national institutions on bank net interest margins and overhead costs using data on over 1,400 banks across 72 countries...
Business Environment and Firm Entry: Evidence from International Data
Leora Klapper, Luc Laeven, Raghuram Rajan
Using a comprehensive database of firms in Western and Eastern Europe, we study how the business environment in a country drives the creation of new firms. Our focus is on regulations governing...
Complex Ownership Structures and Corporate Valuations
The bulk of corporate governance theory examines the agency problems that arise from two extreme ownership structures: 100 percent small shareholders or one large, controlling owner combined with...
Determinants of Deposit-Insurance Adoption and Design
Asli Demirguc-Kunt, Edward J. Kane, Luc Laeven
This paper identifies factors that influence decisions about a country's financial safety net, using a comprehensive dataset covering 180 countries during the 1960-2003 period. Our analysis focuses...
Systemic Banking Crises: A New Database
This paper presents a new database on the timing of systemic banking crises and policy responses to resolve them. The database covers the universe of systemic banking crises for the period 1970-2007,...
International Taxation and Multinational Firm Location Decisions
Salvador Barrios, Harry Huizinga, Luc Laeven, Gaëtan Nicodème
Using a large international firm-level data set, we estimate separate effects of host and parent country taxation on the location decisions of multinational firms. Both types of taxation are...
The Use of Blanket Guarantees in Banking Crises
In episodes of significant banking distress or perceived systemic risk to the financial system, policymakers have often opted for issuing blanket guarantees on bank liabilities to stop or avoid...
International Taxation and Multinational Firm Location Decisions
Salvador Barrios, Harry Huizinga, Luc Laeven, Gaëtan Nicodème
Using a large international firm-level data set, we estimate separate effects of host and parent country taxation on the location decisions of multinational firms. Both types of taxation are...
Special issue: Banking and bank regulation: Challenges for the future
Beck, Thorsten, Laeven, Luc, Levine, Ross, Pennacchi, George
Determinants of deposit-insurance adoption and design
Demirgüç-Kunt, Asli, Kane, Edward J., Laeven, Luc
This paper identifies factors that influence decisions about a country's financial safety net, using a comprehensive data set covering 180 countries during the 1960-2003 period. Our analysis focuses...
Corporate governance quality: Trends and real effects
De Nicolò, Gianni, Laeven, Luc, Ueda, Kenichi
This paper constructs a composite index of corporate governance quality, documents its evolution during the 1994-2003 period in selected emerging and developed economies, and assesses its impact on...
International Taxation and Multinational Firm Location Decisions
Salvador Barrios, Harry Huizinga, Luc Laeven
Using a large international firm-level data set, we estimate separate effects of host and parent country taxation on the location decisions of multinational firms. Both types of taxation are...
Sovereign Wealth Funds: Their Investment Strategies and Performance
Chhaochharia, Vidhi, Laeven, Luc
Sovereign wealth funds have emerged as an important investor of global equity, attracting growing attention. Despite concerns that sovereign wealth fund investments may serve political objectives and...
International Taxation and Multinational Firm Location Decisions
Barrios, Salvador, Huizinga, Harry, Laeven, Luc, Nicodeme, Gaetan
Using a large international firm-level data set, we estimate separate effects of host and parent country taxation on the location decisions of multinational firms. Both types of taxation are...
Luc Laeven, Anonymous Referees, Thorsten Beck, Jerry Caprio, Stijn Claessens, Asli Demirg-kunt
Arguing that a relatively high cost of deposit insurance indicates that a bank takes excessive risks, this article estimates the cost of deposit insurance for a large sample of banks in 14 economies...
International Taxation and Multinational Firm Location Decisions
Salvador Barrios, Luc Laeven, Harry Huizinga, Gaetan Nicodeme
Using a large international firm-level data set, we estimate separate effects of host and parent country taxation on the location decisions of multinational firms. Both types of taxation are...
The Impact of Organizational Structure and Lending Technology on Banking Competition
Hans Degryse, Luc Laeven, Steven Ongena
We investigate how bank organization shapes banking competition. We show that a bank's geographical lending reach and loan pricing strategy is determined by its own and its rivals' organizational...
Deposit Insurance around the World: Issues of Design and Implementation
Asl? Demirgüç-Kunt, Edward J. Kane, Luc Laeven
Explicit deposit insurance (DI) is widely held to be a crucial element of modern financial safety nets. For this reason, establishing a DI system is frequently recommended by outside experts to...
Accounting discretion of banks during a financial crisis
This paper presents evidence of banks using accounting discretion to overstate the value of distressed assets. In particular, we show that the stock market applies far greater discounts to a bank’s...
Faced with a systemic financial sector crisis, policymakers need to make difficult choices under pressure. Based on the experience of many countries in recent years, few have been able to achieve a...
Corporate governance norms and practices
Chhaochharia, Vidhi, Laeven, Luc
We evaluate the impact of corporate governance on the valuation of firms in a large cross-section of countries. Unlike previous work, we differentiate between minimally accepted governance attributes...
Bank governance, regulation and risk taking
This paper conducts the first empirical assessment of theories concerning risk taking by banks, their ownership structures, and national bank regulations. We focus on conflicts between bank managers...
Financial Innovation and Endogenous Growth
Stelios Michalopoulos, Luc Laeven, Ross Levine
We model technological and financial innovation as reflecting the decisions of profit maximizing agents and explore the implications for economic growth. We start with a Schumpeterian endogenous...
The U.S. subprime mortgage crisis: a credit boon gone bad?
Giovanni Dell'Ariccia, Deniz Igan, Luc Laeven
Subprime mortgage ; Mortgages
Pension Reform, Ownership Structure, and Corporate Governance: Evidence from a Natural Experiment
Mariassunta Giannetti, Luc Laeven
Sweden offers a unique natural experiment to analyze the effects of institutionalized saving on the ownership structure, corporate governance, and firm performance. The Swedish pension reform...
Financial Innovation and Endogenous Growth
Laeven, Luc, Levine, Ross, Michalopoulos, Stelios
We model technological and financial innovation as reflecting the decisions of profit maximizing agents and explore the implications for economic growth. We start with a Schumpeterian endogenous...
Accounting Discretion of Banks During a Financial Crisis
This paper shows that banks use accounting discretion to overstate the value of distressed assets. Banks' balance sheets overvalue real estate-related assets compared to the market value of these...