CARE/CEASA Roundtable on: Liquidity and Capital Management |
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| Authors: | Charles Calomiris Murillo Campello Mark Lang Florin Vasvari Scott Richardson |
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| Institution: | 1. Henry Kaufman Professor of Financial Institutions at the Columbia Business School, and Research Associate at the National Bureau of Economic Research.;2. Lewis H. Durland Professor of Management at Cornell University.;3. Thomas W. Hudson, Jr./Deloitte and Touche L.L.P. Distin‐guished Professor of Accounting at the University of North Carolina's Kenan‐Flagler School of Business at Chapel Hill.;4. Assistant Professor of Accounting at the London Business School.;5. Professor of Accounting at LBS. |
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| Abstract: | Five distinguished banking and accounting scholars explore the role of liquidity at not only the “macro” level of the economy, but also at the level of individual companies. The first of the four main speakers, who is the author of the preceding article, restates his argument that the stability of financial systems can be increased by directing bank regulators and executives to find the optimal combination of liquidity and capital requirements. The second of the four speakers shifts the focus to liquidity management by non‐financial companies, with particular emphasis on their use of lines of credit and their role in helping companies weather the financial crisis. The third speaker places liquidity in the context of capital markets, and presents suggestive evidence that improvements in corporate disclosure and transparency have beneficial effects on both the level and volatility of liquidity in those markets. The panel is rounded out by a discussion of liquidity in corporate bond markets and the proposal of a new way to measure such liquidity. |
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