Business Commons^™

Bank Liquidity Creation And Systemic Risk, Destan Kirimhan

Theses and Dissertations

My dissertation includes three essays on bank liquidity creation and systemic risk. In the first essay, we examine the role of distracted institutional investors in banks in one of the most comprehensive measures of bank output, bank liquidity creation. We employ institutional investor distraction measure developed by Kempf et al. (2017). With a sample of publicly listed U.S. banks over the period of 1986-2016, we find that as institutional investors become more distracted, banks create more liquidity on the asset-side and off-balance sheet side. These results are stronger for large banks relative to small banks and are more pronounced during …

Three Essays On Banking, Xinming Li

Theses and Dissertations

My dissertation includes three essays related to banking. In the first essay, I identify an important channel through which stronger legal enforcement boosts the real economy – by increasing bank liquidity creation. Results suggest that effective enforceability of contracts increases total, asset-side, liability-side, and off-balance sheet- side liquidity creation, implying favorable causal real economic effects.

In the second essay, we conduct the first broad-based international study on bank- level failures covering 92 countries over 2000-2014 and investigate national culture values as bank failure determinants. We find individualism and masculinity are positively associated with bank failure but operate through different channels. …