As Equation (4) shows, the LSM at time τ is calculated by averaging the slopes of the price increments from the midpoint over the cumulative limit order book volume posted and aggregating the slopes on the bid-
Our paper contributes to two streams of literature. First, we extend the literature on the rating process of CRAs. Prior research documents a variety of firm-level factors that CRAs consider in forming credit ratings. These factors include accounting ratios (Kaplan and Urwitz, 1979), financial ...
The main differences between debits and credits all comes down to theaccounting equation: Debits (DR) Debits always appear on the left side of an accounting ledger. Debitsincreaseasset and expense accounts anddecreaseliability, equity, and revenue accounts. Credits (CR) Credits always appear on the...
4 Equation (1) shows the approximate relationship between credit spreads and these two components. Credit Spread ∝ PD × LGD (1) The higher the probability of default or the higher the loss given default (i.e., lower recovery rates), the higher the credit spread will be. In practice, ...
Business Accounting Double-entry bookkeeping system True or false? The debit and credit parts of an entry must be equal for the accounting equation...Question:True or false? The debit and credit parts of an entry must be equal for the accounting ...
Yet, recent literature has focused greater attention upon an alternative mechanism derived from the mental accounting literature. That is, credit cards may instead weaken brakes on spending by lessening the pain associated with making payments. This “pain-of-payment” hypothesis was originally proposed...
So far the Non-Financial Reporting Directive (Directive 2014/95/EU, NFRD), amending the Accounting Directive 2013/34/EU, provides the framework for disclosing non-financial information on large companies. The NFRD applies to large public-interest entities (PIE) with an average number of ...
A substantial part of the paper explores the sensitivity of our results to alternative empirical strate- gies. We confirm the existence of the heterogeneous transmission of monetary policy in a setup accounting for many relevant determinants of household credit, including loan characteristics (proxy of...
Whether it is a sole proprietorship or a small firm, accounting is an integral part of all kinds of businesses. Debits and credits work differently depending on the type of account, and they might be recorded in different places on a company's general ledger. However, the equation should sti...
Furthermore, business investment is strongly conditioned by liquidity demand shocks, which explain a significant part of the variation in investment activity. Even though loan supply shocks constrained the investment activity in Slovenia during the financial crisis, the results of our analysis suggest ...