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SUMMARY:Bank credit rating changes\, capital structure adjustments and len
 ding - Professor Claudia Girardone\, Essex Business School\, University of
  Essex
DTSTART:20180207T160000Z
DTEND:20180207T170000Z
UID:TALK98656@talks.cam.ac.uk
CONTACT:Ingrid Cizaite
DESCRIPTION:This paper examines the causal effect of bank credit\nrating c
 hanges on bank capital structure decisions. Banks adjust their capital str
 ucture following a credit rating downgrade. Adjustments involve: leverage\
 , rating sensitive liabilities and lending. Rating upgrades do not affect 
 capital structure activities suggesting that banks target minimum rating l
 evels. In our study\, we also exploit the\nasymmetric impact of downgrades
  of banks based in Greece\, Ireland\, Italy\, Spain and Portugal during th
 e EU sovereign debt crisis. This asymmetric effect leads to greater capita
 l adjustments\, reductions in long-term funding and lending of banks from 
 those countries relative to other banks. Our results are consistent with t
 he expectation of discrete cost (benefits) associated with rating changes.
 \n\nClaudia Girardone is Professor of Banking and Finance at \nEssex Busin
 ess School of the University of Essex. She is also Director of the Essex F
 inance Centre (EFiC) and the School’s Director of Research. Professor Gi
 rardone has published over 50 articles on various aspects of banking and f
 inance in books and peer-reviewed international journals. She is a co-auth
 or of the textbook Introduction to Banking (FT \nPearson Education\, 2015)
 . She is currently on the editorial board of several journals including th
 e Journal of Financial Economic Policy and The European Journal of Finance
 . Her current research areas are on banking sector performance and stabili
 ty\, bank corporate governance\, the industrial structure of banking and a
 ccess to finance. 
LOCATION:Mill Lane Lecture Room 1
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