The CLASS model is a top-down capital stress testing framework that uses public data, simple econometric models, and auxiliary assumptions to project the effect of macroeconomic scenarios on U.S. banking firms. Through the lens of the model, we find that the total banking system capital shortfall under stressful macroeconomic conditions began to rise four years before the financial crisis, peak...

We use forward-looking and exogenous measures of output price uncertainty to examine the effect of price uncertainty on firm-level capital investment, risk management, and debt issuance. The effects of uncertainty vary significantly by firm size. When faced with high price uncertainty, large firms increase their hedging intensity but do not lower capital investment or debt issuance. In contrast...

Why do capital taxes still exist in an integrated world economy? When capital is perfectly mobile across countries and labour is fixed, a source-based tax on capital both reduces and redistributes world income. In a simple general equilibrium model we show that under plausible circumstances there always exists a country that benefits from introducing such a tax. Countries that are richer in ter...

Since the late 1980s, financial geographers have argued, against the tenets of mainstream neoclassical economics, that most political economies harbor a growing unevenness in the accessibility of capital, which is due to the increasing consolidation within the financial sector. However, financial geographers have been less strong in offering institutional answers to this state of affairs. To ad...

full, on-time, and with quality disclosure of financial information can lead to the transparency of such information and decreases information asymmetry. among the published information of firms, earnings are of priority importance attended by many users; therefore, the issue of the transparency of accounting earnings is of high importance. the aim of this study is investigating the accounting ...

In this paper, we develop a model of dynamic capital structure choice based on a sample of Korean manufacturing firms and estimate the unobservable optimal capital structure using a wide range of observable determinants. Uunbalanced panel data of Korean listed firms for the period 1985 to 2002 is used. In addition to identifying and estimating the effects of the determinants of capital structur...

The question of where rural capital markets are headed is a timely one for several reasons. First, rural capital markets are in the process of integrating into a broad-based national capital market. Second, these rural markets seem likely to continue harboring unfilled gaps, compared to national capital markets. Third, structural changes in the markets can have both positive and negative impact...

Cross-border capital flows have been increasing in real value at a pace of about 6 percent a year since 1980, faster than those of world gross domestic product (GDP) and trade. The progress has been particularly rapid since 1990 (though with a temporary drop during 1997–2002, and another probably temporary dip that started in 2008). This reflects falling barriers to capital flows in many parts ...

The study was conducted to evaluate the impact of the global financial crisis on social capital formation in Malaysia in 2009. The results are based on data collected from survey of Malaysian low-income households carried out in January 2010. The study employed a multiplicity of econometric and statistical techniques to identify factors that influenced social capital declination, which appears ...

This article examines the role of capital in financial institutions -why it is important, how market-generated capital 'requirements' differ from regulatory requirements, and the form that regulatory requirements should take. Along the way, we examine historical trends in bank capital, problems in measuring capital, and some possible unintended consequences of capital requirements. Within this ...