“Whatever it takes”: An Empirical Assessment of the Value of Policy Actions in Banking

B-Tier
Journal: Review of Finance
Year: 2016
Volume: 20
Issue: 6
Pages: 2321-2347

Authors (2)

Franco Fiordelisi (University of Essex) Ornella Ricci (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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 Global 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).

Technical Details

RePEc Handle
repec:oup:revfin:v:20:y:2016:i:6:p:2321-2347.
Journal Field
Finance
Author Count
2
Added to Database
2026-01-25