G3 - Corporate Finance and Governance - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T09:21:01+00:00Supporting the Transition to Net-Zero Emissions: The Evolving Role of Central Banks
https://www.bankofcanada.ca/2023/12/staff-discussion-paper-2023-31/
While climate change was largely tackled by government policies in the past, central banks are increasingly grappling with the risks climate change poses. They are evaluating their operational policies to reflect these risks and the transition to a net-zero economy. This paper explores the trade-offs and considerations central banks face.2023-12-18T14:46:24+00:00enSupporting the Transition to Net-Zero Emissions: The Evolving Role of Central Banks2023-12-18Central bank researchClimate changeFinancial marketsStaff Discussion Paper 2023-31https://www.bankofcanada.ca/wp-content/uploads/2023/12/sdp2023-31.pdfSupporting the Transition to Net-Zero Emissions: The Evolving Role of Central BanksKaren McGuinnessDecember 2023DD5D53EE5E58E6E63GG3G32QQ5Q54Is Climate Transition Risk Priced into Corporate Credit Risk? Evidence from Credit Default Swaps
https://www.bankofcanada.ca/2023/07/staff-working-paper-2023-38/
We study whether the credit derivatives of firms reflect the risk from climate transition. We find that climate transition risk has asymmetric and significant economic impacts on the credit risk of more vulnerable firms, and negligible effects on other firms.2023-07-17T13:28:18+00:00enIs Climate Transition Risk Priced into Corporate Credit Risk? Evidence from Credit Default Swaps2023-07-17Climate changeCredit risk managementEconometric and statistical methodsStaff Working Paper 2023-38https://www.bankofcanada.ca/wp-content/uploads/2023/07/swp2023-38.pdfIs Climate Transition Risk Priced into Corporate Credit Risk? Evidence from Credit Default SwapsAndrea UgoliniJuan C. ReboredoJavier Ojea FerreiroJuly 2023CC2C24GG1G12G3G32QQ5Q54Crowdfunding and Risk
https://www.bankofcanada.ca/2023/05/staff-working-paper-2023-28/
Crowdfunding may enable unique products to reach the consumer market. I model a crowdfunding technology that publicly screens consumer demand early in the production process. In this model, entrepreneurs like crowdfunding for risky projects where demand is uncertain, but not for large, safe projects or for projects where production costs are uncertain.2023-05-29T15:44:01+00:00enCrowdfunding and Risk2023-05-29Digital currencies and fintechFinancial marketsFinancial servicesStaff Working Paper 2023-28https://www.bankofcanada.ca/wp-content/uploads/2023/05/swp2023-28.pdfStaff Working Paper 2023-28David CimonMay 2023GG2G21G24G3G32What we can learn by linking firms’ reported emissions with their financial data
https://www.bankofcanada.ca/2023/04/staff-analytical-note-2023-4/
We analyze the financial statements and stock prices of publicly traded firms incorporated in Canada that report greenhouse gas emissions. We find that these firms primarily use equity financing. We also find that equity investors increasingly account for firms’ emissions when making investment decisions but the impact appears small. This suggests that assets exposed to climate change remain at risk of a sudden repricing.2023-04-03T15:00:08+00:00enWhat we can learn by linking firms’ reported emissions with their financial data2023-04-03Exporting and Investment Under Credit Constraints
https://www.bankofcanada.ca/2023/02/staff-working-paper-2023-10/
We examine the relationship between firms’ performance and credit constraints affecting export market entry. Using administrative Canadian firm-level data, our findings show that new exporters (a) increase their productivity, (b) raise their leverage ratio and (c) increase investment. We estimate that 48 percent of Canadian manufacturers face binding credit constraints when deciding whether to enter export markets.2023-02-10T14:26:13+00:00enExporting and Investment Under Credit Constraints2023-02-10Econometric and statistical methodsFirm dynamicsInternational topicsProductivityStaff Working Paper 2023-10https://www.bankofcanada.ca/wp-content/uploads/2023/02/swp2023-10.pdfExporting and Investment Under Credit ConstraintsKim HuynhRobert PetruniaJoel RodrigueWalter SteingressFebruary 2023FF1F10F14F3F36GG2G20G28G3G32Stress Relief? Funding Structures and Resilience to the Covid Shock
https://www.bankofcanada.ca/2023/01/staff-working-paper-2023-7/
Funding structures affected the amount of financial stress different countries and sectors experienced during the spread of COVID-19 in early 2020. Policy responses targeting specific vulnerabilities were more effective at mitigating this stress than those supporting banks or the economy more broadly.2023-01-30T08:46:15+00:00enStress Relief? Funding Structures and Resilience to the Covid Shock2023-01-30Coronavirus disease (COVID-19)Exchange ratesFinancial institutionsFinancial stabilityFinancial system regulation and policiesInternational topicsStaff Working Paper 2023-7https://www.bankofcanada.ca/wp-content/uploads/2023/01/swp2023-7.pdfStress Relief? Funding Structures and Resilience to the Covid ShockKristin ForbesChristian FriedrichDennis ReinhardtJanuary 2023EE4E44E6E65FF3F31F36F4F42GG1G18G2G23G3G38Financial Constraints and Corporate Investment in China
https://www.bankofcanada.ca/2022/12/staff-discussion-paper-2022-22/
Financial constraints deter firms from pursuing optimal investment plans. In China, we find privately owned firms face greater financial constraints than state-owned enterprises (SOEs). This can be explained by our finding that lenders appear less concerned about the credit risk of SOEs, which causes distortions in the allocation of credit.2022-12-20T13:46:58+00:00enFinancial Constraints and Corporate Investment in China2022-12-20Financial marketsFirm dynamicsStaff Discussion Paper 2022-22https://www.bankofcanada.ca/wp-content/uploads/2022/12/sdp2022-22.pdfFinancial Constraints and Corporate Investment in ChinaKun MoMichel SoudanDecember 2022EE2E22GG1G3Monetary Policy, Credit Constraints and SME Employment
https://www.bankofcanada.ca/2022/12/staff-working-paper-2022-49/
We revisit an old question: how do financial constraints affect the transmission of monetary policy to the real economy? To answer this question, we propose a simple empirical strategy that combines firm-level employment and balance sheet data, identified monetary policy shocks and survey data on financing activities.2022-12-09T13:01:12+00:00enMonetary Policy, Credit Constraints and SME Employment2022-12-09Credit and credit aggregatesEconometric and statistical methodsFirm dynamicsLabour marketsMonetary policyStaff Working Paper 2022-49https://www.bankofcanada.ca/wp-content/uploads/2022/12/swp2022-49.pdfMonetary Policy, Credit Constraints and SME EmploymentJulien ChampagneÉmilien Gouin-BonenfantDecember 2022EE2E3E4E43E5E52GG3Considerations for the allocation of non-default losses by financial market infrastructures
https://www.bankofcanada.ca/2022/11/staff-analytical-note-2022-16/
Non-default losses of financial market infrastructures (FMIs) have gained attention due to their potential impacts on FMIs and FMI participants, and the lack of a common approach to address them. A key question is, who should absorb these losses?2022-11-03T12:32:09+00:00enConsiderations for the allocation of non-default losses by financial market infrastructures2022-11-03How does the Bank of Canada’s balance sheet impact the banking system?
https://www.bankofcanada.ca/2022/09/staff-analytical-note-2022-12/
We examine how changes in the Bank of Canada’s balance sheet impact the banking system. Quantitative easing contributed to an increase in the size of the banking system’s balance sheet and an improvement in bank liquidity coverage ratios. Quantitative tightening is expected to partially reverse these impacts. The banking system will have to adjust its liquidity management strategy in response.2022-09-22T10:00:41+00:00enHow does the Bank of Canada’s balance sheet impact the banking system?2022-09-22