• Working Paper

    • CBDC and the Shadow of Bank Disintermediation: US Stock Market Insights on Threats and Remedies

      Joint work with Lars Beckmann, Jörn Debener and Andreas Pfingsten

      Abstract: Deposit-dependent banks might be negatively affected by a central bank digital currency (CBDC) introduction. Particularly, a retail CBDC aimed at consumers may constrain cheap funding, thus eroding bank profits (deposit channel). Our empirical study reveals that stock market reactions of US banks to speeches by US Federal Reserve (FED) executives indicating they intend to introduce a CBDC are indeed more negative the more these banks depend on deposits. However, as soon as the FED promises protection against disintermediation, e.g., via a non-interest bearing CBDC or a CBDC holding limit, we observe that highly deposit-dependent banks experience positive stock market reactions.

      Available at SSRN

    • The 52-Week High and M&A Deals: International Evidence

      Joint work with Pascal Büsing, Nils Lohmeier and Hannes Mohrschladt

      Abstract: Motivated by the seminal findings of Baker et al. (2012) and Ma et al. (2019), we examine the effects of stocks' 52-week highs on mergers and acquisitions in a global sample across 34 countries. First, we confirm that the targets' past stock price peaks serve as a reference point in merger negotiations, impacting both offer premia and the likelihood of deal acceptance. Second, we confirm that acquirers trading far below their 52-week high experience more positive market reactions. However, economic magnitude and statistical significance differ substantially across regions. In sum, the 52-week high plays a smaller role for M&A deals internationally compared to the United States.

      Available at SSRN