Financial crises impose large and persistent social costs, making banking stability important.
This article reviews the central issues surrounding the role bank capital plays in financial …

We develop a conceptual framework and an empirical methodology to analyze the effect of
rising interest rates on the value of US bank assets and bank stability. We mark-to-market …

Shadow bank market share in residential mortgage origination nearly doubled from 2007 to
2015, with particularly dramatic growth among online “fintech” lenders. We study how two …

We provide updates to and perspectives on the enduring topic of debt and taxes. The recent
decade brought us new empirical strategies, accounting rules, and tax laws. We discuss …

We study the impact of higher capital requirements on banks' balance sheets and their
transmission to the real economy. The 2011 EBA capital exercise is an almost ideal quasi …

The “reversal interest rate” is the rate at which accommodative monetary policy reverses its
intended effect and becomes contractionary for lending. It occurs when banks' asset …

We develop a model where a firm has an optimal exposure to cyber risk. With rational, fully
informed agents and with no hysteresis, a successful cyberattack should have no impact on …

We quantify the role of financial leverage behind the sluggish post-crisis investment
performance of European firms. We use a cross-country firm-bank matched database to …

This article examines managers' incentive to play it safe. We find that, after managers are
insulated by the adoption of an antitakeover law, they take value-destroying actions that …

Using staggered corporate income tax changes across US states, we show that taxes have a
first-order effect on capital structure. Firms increase leverage by around 40 basis points for …