Teodora Paligorova

Principal Researcher

Teodora Paligorova is a Principal Researcher in the Financial Studies Division in the Financial Stability Department. Her research interests are in the areas of capital markets, corporate finance, financial systems design, and financial intermediation. Specific topics include monetary policy and the cost of funding for corporations, capital structure over the business cycle, firm hedging activities. Teodora Paligorova received her PhD in economics from the Center for Economic Research & Graduate Education in Prague.


Teodora Paligorova

Principal Researcher
Financial Stability
Financial Studies

Bank of Canada
234 Wellington Street
Ottawa, ON, K1A 0G9

Curriculum vitae


Cross-Border Bank Flows and Monetary Policy: Implications for Canada

Using the Bank for International Settlements (BIS) Locational Banking Statistics data on bilateral bank claims from 1995 to 2014, we analyze the impact of monetary policy on cross-border bank flows. We find that monetary policy in a source country is an important determinant of cross-border bank flows.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial Institutions, Monetary Policy JEL Code(s): F, F3, F34, F36, G, G0, G01

Non-Bank Investors and Loan Renegotiations

Staff Working Paper 2016-60 Teodora Paligorova, João Santos
We document that the structure of syndicates affects loan renegotiations. Lead banks with large retained shares have positive effects on renegotiations. In contrast, more diverse syndicates deter renegotiations, but only for credit lines.

November 13, 2014 The Use of Financial Derivatives by Canadian Firms

In Canada, about one-third of publicly listed non-financial firms use financial derivatives. The use of derivatives is widespread across all sectors of the economy and increases during periods of greater uncertainty. Non-financial firms that use derivatives are typically larger and more profitable and have lower volatility of earnings than those that do not use derivatives. Overall, the firm characteristics of Canadian hedgers seem to be consistent with those found in other jurisdictions.
Content Type(s): Publications, Bank of Canada Review Article Topic(s): Exchange rates, Financial markets JEL Code(s): G, G1, G10, G3, G32

Rollover Risk and the Maturity Transformation Function of Banks

Staff Working Paper 2014-8 Teodora Paligorova, João Santos
This paper shows that banks that rely heavily on short-term funding engage less in maturity transformation in an attempt to decrease their exposure to rollover risk. These banks shorten both the maturity of their portfolio of loans as well as the maturity of newly issued loans. We find that the loan yield curve becomes steeper with banks’ increasing use of short-term funding.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial stability JEL Code(s): G, G2, G21

Corporate Governance, Product Market Competition and Debt Financing

Staff Working Paper 2014-5 Teodora Paligorova, Jun Yang
This paper examines the impact of product market competition and corporate governance on the cost of debt financing and the use of bond covenants. We find that more anti-takeover provisions are associated with a lower cost of debt only in competitive industries.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial markets JEL Code(s): G, G1, G12, G3, G34

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Refereed Journals

  • “Monetary Policy and Bank Risk-Taking: Evidence from the Corporate Loan Market”
    (with João Santos), forthcoming at the Journal of Financial Intermediation
  • “Banks' Exposure to Rollover Risk and the Maturity of Corporate Loans”
    (with João Santos), forthcoming in the Review of Finance
  • "Bank Loans for Private and Public Firms in a Liquidity Crunch"
    (with Jason Allen), Journal of Financial Stability, 18, 106-116, 2015.
  • "Complex Ownership and Capital Structure,"
    (with Zhaoxia Xu), Journal of Corporate Finance, 18 (4), 701-716, 2012.
  • "Tournament Structure of Managerial Pay: Evidence from the Transition Period,"
    Managerial and Decision Economics, 32 (6), 385-398, 2011.
  • "Czech Female Managers and their Wages"
    (with Stephan Jurajda), Labour Economics, 16, 342-351, 2009.


  • Ph.D., Economics, CERGE-EI, Charles University (2007)
  • M.A., Economics, CERGE-EI, Charles University (2003)
  • B.A., Finance, University of National and World Economy, Sofia (1999)

Research Interests

  • Capital markets
  • Corporate finance
  • Financial systems design
  • Financial intermediation


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