"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: Full text: © The Authors 2015. Published by Oxford University Press on behalf of the European Finance Association. This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial reproduction and distribution of the work, in any medium, provided the original work is not altered or transformed in any way, and that the work properly cited. For commercial re-use, please contact journals.permissions@oup.com
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Depositing User: Franco Fiordelisi
Date Deposited: 08 Oct 2015 09:39
Last Modified: 07 Nov 2018 17:49
URI: http://eprints.mdx.ac.uk/id/eprint/18002

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