Three essays in banking, financial fragility and CEO compensation

This dissertation investigates two issues: (1) banks' funding liquidity risk and its implications, and (2) the optimal design of CEO compensation contracts. The first chapter analyzes the interaction between banks' funding liquidity risk and asset market illiquidity. We emphasize how the l...

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Detalles Bibliográficos
Autor: Li, Zhao
Tipo de recurso: tesis doctoral
Estado:Versión publicada
Fecha de publicación:2015
País:España
Institución:CBUC, CESCA
Repositorio:TDR. Tesis Doctorales en Red
OAI Identifier:oai:www.tdx.cat:10803/378040
Acceso en línea:http://hdl.handle.net/10803/378040
Access Level:acceso abierto
Palabra clave:Banks
Liquidity risk
CEO compensation
Bancs
Risc de liquiditat
Contractes de compensació CEO
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Descripción
Sumario:This dissertation investigates two issues: (1) banks' funding liquidity risk and its implications, and (2) the optimal design of CEO compensation contracts. The first chapter analyzes the interaction between banks' funding liquidity risk and asset market illiquidity. We emphasize how the lack of information distorts asset prices. In the model,asset fire sales, bank runs, and financial contagion, are all self-fulfilling, and emerge in a rational expectations equilibrium. The model also delivers new policy insights on bank capital holding and asset purchase programs. The second chapter also relates bank liquidity issues. It emphasizes how credit information sharing schemes can contribute to asset market liquidity, and therefore provides a novel exposition for the existence of such schemes. The last chapter is devoted to the design of CEO compensation contracts, where the coexistence of stock and option grants is rationalized as an optimal contract in a multiplicative model.