Fiordelisi, Franco and Minnucci, Federica and Previati, Daniele and Ricci, Ornella (2020) Bail-In Regulation and Stock Market Reaction. Economics Letters, 186. p. 108801. DOI https://doi.org/10.1016/j.econlet.2019.108801
Fiordelisi, Franco and Minnucci, Federica and Previati, Daniele and Ricci, Ornella (2020) Bail-In Regulation and Stock Market Reaction. Economics Letters, 186. p. 108801. DOI https://doi.org/10.1016/j.econlet.2019.108801
Fiordelisi, Franco and Minnucci, Federica and Previati, Daniele and Ricci, Ornella (2020) Bail-In Regulation and Stock Market Reaction. Economics Letters, 186. p. 108801. DOI https://doi.org/10.1016/j.econlet.2019.108801
Abstract
In response to the global financial turmoil and sovereign debt crisis, the European Union has introduced a new bail-in resolution mechanism based on the shared burden of losses between shareholders, debt-holders, and depositors. By focusing on the abnormal stock price reactions to bail-in policy announcements, this paper shows that investors perceive the new bail-in regime as a credible tool to decrease government interventions, reduce the too-big-to-fail problem, and increase market discipline in the European banking industry.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Bail-in; Banking crises; Event study |
| Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
| SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
| Depositing User: | Unnamed user with email elements@essex.ac.uk |
| Date Deposited: | 05 Nov 2019 09:27 |
| Last Modified: | 30 Oct 2024 17:28 |
| URI: | http://repository.essex.ac.uk/id/eprint/25737 |
Available files
Filename: FF_FM_DP_OR_Accepted_text.pdf
Licence: Creative Commons: Attribution-Noncommercial-No Derivative Works 3.0