Layla Mendes

Getúlio Vargas Foundation | FGV · Ph.D. Program in Administration

Purpose Our paper explores the political determinants of bank cash holdings. We selected as our sample banks from G7 (to proxy developed economies) and BRICS (to proxy emerging markets). Design/methodology/approach We collected data on banks' financial information from 2009 to 2019, totaling 5,438 banks. We employ regressions, two-staged least squ...

A robust body of research suggests that entrepreneurial activities benefit from financial development and external financing access. However, there is a gap in understanding how and the extent to which the accessibility to financial services is associated with entrepreneurial activity. Based on an unbalanced panel of 2104 Brazilian municipalities s...

Community currencies have recently emerged as tools for assisting the disadvantaged. In order to make a contribution to the larger field of community currencies, the purpose of this research is to investigate how a financial institution evaluates community currency lending. We show, using an adverse selection model, the importance of the role of mo...

In this paper, we implement an empirical analysis to discuss the impact of CoCo bond issuance on the systemic risk using three systemic risk measures for banks: SRISK, SES and ΔCoVaR. Our results show that issuing CoCo bonds the first time decreases systemic risk as a positive response to a future crisis. However, the second issuance increases the...

We examine the effect of cash holdings on bank profitability using a worldwide database. Unlike previous studies, we model it as a non-monothonic relationship. We consider as a proxy for banks' profitability the return on equity and the return on assets. Our results show that there is a non-monotonic relationship between the cash conversion cycle a...

Because of its very nature, corruption is hard to be measured, and thus most indices rely on people’s perception of it. However, judgments are known to be biased, and therefore perception of corruption may not reflect actual corruption. Nevertheless, how individuals perceive corruption is important: the perception that corruption is high can cause...

We theorize that for-profit microfinance institutions (MFIs) have higher incentives to use earnings management techniques when compared to their not-for-profit counterparts. Indeed, we show empirically that, when facing a distress period, for-profit MFIs are more likely to recognize impairment loan loss provisions than not-for-profit ones in about...

p> Nos aprimoramos a teoria de Rajan e Zingales (1995) por meio da análise de dados de um período mais recente e de técnicas estatísticas mais robustas. Comprovamos que o modelo teórico proposto por Rajan e Zingales continua atual, mesmo levando em conta correções para autocorrelações seriais e controlando pela alavancagem inicial. Porém, o nível d...

In this paper, we analyze the determinants of CoCo bond issuance. We find evidence that banks that issue CoCos are typically large. Moreover, in the case of BRICS and other emerging economies, we find evidence that banks are also highly leveraged, aiming to meet the Basel III rules and replace debt with equity funding. Also, we study the strength o...

We used a multilevel approach on comparing for-profit and not-for-profit microfinance institutions (MFIs). The database was composed of 202 MFIs (in 52 countries) from the most widely used microfinance dataset (the Microfinance Information eXchange, Inc. Market), with 669 observations from 2010 to 2014. Four financial sustainability outcomes were c...

Issuing CoCo bonds is a possible way for banks to protect against economic uncertainty scenario. However, it remains unclear if CoCo bonds will be useful in loss absorption for issuers in the event of another financial distress. Using the model of Systemic Risk proposed by Brownlees and Engle (2016a), we estimated the expected capital shortfall for...