Liquidity and Risk Management

By Bengt R. Holmstrom, Jean Tirole. 2000

355 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/282e294ac3166a80f0d3408cd8e61b8809f16f9b

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Citations in the corpus

Understanding Commonality in Liquidity Around the World (2011, background): “In Gârleanu and Pedersen (2007), tighter risk management by institutions due to higher fundamental volatility leads to lower market liquidity.”
Liquidity risk and performance of banking system (2012, background): “A bank may have to increase its cash reserves to mitigate the liquidity risk, but it might be costly in practice (Holmstrom and Tirole, 2000).”
A Tax on Systemic Risk (2010, background): “3 See, for example, Brunnermeier and Pedersen (2008), Garleanu and Pedersen (2007), and Mitchell, Pedersen, and Pulvino (2007).”
Determinants of Credit Risk in Indian State-owned Banks: An Empirical Investigation (2007, background): “The extant research has concentrated mostly on evaluation of ex-ante risks of borrowers and/or of individual loan operations, and on studying the response of lenders to such evaluations (Santomero, 1997; Altman and Saunders, 1998; Holmstrom and Tirole, 2000).”
Regulatory Pressure and Fire Sales in the Corporate Bond Market (2011, neutral): “5 Duffie, Garleanu and Pedersen (2002), Green, Hollifield and Schurhoff (2007), and others demonstrate empirically that search costs are important in describing trading in over-the-counter markets.”
Institutional Trading and Stock Resiliency: Evidence from the 2007-2009 Financial Crisis (2013, neutral): “Other models predict that higher volatility during a market downturn increases the investor’s risk aversion (Huang and Wang, 2009), or tightens risk management by institutions (Garleanu and Pedersen, 2007), thereby decreasing liquidity provision.”
Dynamic Risk Management (2014, background): “Holmström and Tirole (2000) note that credit-constrained entrepreneurs could choose not to buy full insurance against liquidity shocks, which is related to our result that incomplete risk management is optimal. Mello and Parsons (2000) also argue that financial constraints could constrain hedging.”
Earnings and Capital Management in Alternative Loan Loss Provision Regulatory Regimes (2006, background): “Laeven and Majnoni (2003) link this provision with the cyclical oscillations of bank reserves proposed by Holmstrom and Tirole (2000).”