"Whatever it takes": an empirical assessment of the value of policy actions in banking

Fiordelisi, Franco and Ricci, Ornella (2016) "Whatever it takes": an empirical assessment of the value of policy actions in banking. Review of Finance, 20 (6). pp. 2321-2347. ISSN 1572-3097

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Abstract

What types of policy intervention had a greater impact during the financial crisis? By using a detailed dataset of worldwide policy, we answer this question focusing on Globally-Systemically Important banks (G-SIBs), looking both to stock returns and Credit Default Swap (CDS) spreads reactions. As robustness checks, we also analyze a control sample of 31 large Non-Financial Companies (NFCs). Overall, we show that different policy interventions from governments and central banks have produced diverse market reactions: investors generally appreciate monetary policy interventions for G-SIBs (but not for NFCs) and do not welcome bank failures and bailouts (for both G-SIBs and NCFs).

Item Type: Article
Research Areas: A. > Business School > Accounting and Finance
Item ID: 18002
Notes on copyright: Accepted version: This is a pre-copyedited, author-produced version of an article accepted for publication in Review of Finance following peer review. The version of record Franco Fiordelisi, Ornella Ricci, “Whatever it takes”: An Empirical Assessment of the Value of Policy Actions in Banking, Review of Finance, Volume 20, Issue 6, October 2016, Pages 2321–2347, is available online at: DOI https://doi.org/10.1093/rof/rfv053 and on the OUP website https://academic.oup.com/rof/article-abstract/20/6/2321/2418136
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Depositing User: Franco Fiordelisi
Date Deposited: 08 Oct 2015 09:39
Last Modified: 17 Apr 2019 21:30
URI: https://eprints.mdx.ac.uk/id/eprint/18002

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