Nitish Kumar Articles: page 1

New study highlights the real cost of political interference in banking

GAINESVILLE, Fla. – Banks across the world have long faced a common threat – political interference. Previous studies have shown that the world average of government ownership of banks is almost 42 percent, putting banks at risk of political capture. Following the 2008 financial crisis, when many governments stepped in to save their banks from crisis, deep political divides formed and caused political interference to become the number one industry concern among bankers, non-bankers and regulators, according to a study

The decline in secured debt

“What role does collateral play in corporate borrowing?” ask Assistant Professor of Finance Nitish Kumar and his colleagues Efraim Benmelech of Northwestern University and Raghuram Rajan of the University of Chicago. The researchers explain that collateral comforts and protects a lender against the threat of a default. “When an effective system of seniority of claims is not available, creditors who register the collateral backing their debt with a collateral registry effectively establish the seniority of their debt claim, at least

Secrets don’t make friends: New research shows hedge funds gain information advantage from unique relationships with investment banks

GAINESVILLE, Fla. – Keeping a secret is often easier said than done, especially when there’s money on the table. For years, news outlets like The New York Times and The Wall Street Journal have written about investment banks allegedly giving their hedge fund clients preferential access to broad bank resources and information – information that could be used to gain an unfair advantage when it comes to trading stocks. While the world may never know the whole truth about what

Faculty News Roundup: Warrington professors’ successes in 2017-2018

Over the 2017-2018 academic year, Warrington College of Business faculty members reminded us why they’re some of the best in the world. From producing hundreds of new research papers, to teaching countless students the fundamentals of business, to writing or being quoted in the news about trending topics like cryptocurrency, energy, leadership, IPOs, brick-and-mortar retail stores and entrepreneurship, Warrington faculty members continued to elevate the college into one of the most respected in the world.   Warrington faculty had 176