Rafael Matta

Professor of Finance/
Director of the Finance & Accounting Specialization - PhD in Business Administration/
SKEMA Business School

[Marco Ghitti @marcoghitti]

"Creditor Rights, Bank-Borrower Relationships and Bank Power" has been published in Management Science! Thanks to co-authors Florencio López de Silanes e @rafmatta https://t.co/VlaLEf7B0w #ManagementScience #Banking #Bankruptcy #Law #Finance @dSEA_Unipd @UniPadova @INFORMS

[Paulo Vaz @PauloVaz6]

🚨 I am very happy to share that our paper "Short selling and product market competition" (co-authored with @rafmatta e Sergio H. Rocha) has just been published online (free access) at the Journal of Banking and Finance: https://t.co/XyaJWtP8Gw

[Rafael Matta @rafmatta]

8/ This bail-in arrangement resembles a suspension followed by loss sharing among unpaid uninsured creditors, with remaining assets sold under orderly resolution. Our model suggests that the triggering of OLA may be inefficiently late.

[Rafael Matta @rafmatta]

1/ I am very happy to share that our paper "Pay, Stay, or Delay? How to Settle a Run" (co-authored with my friend Enrico Perotti) has just been published online at The Review of Financial Studies: https://t.co/lifMwrfdwB
@SKEMA_BS

[Rafael Matta @rafmatta]

7/ The Dodd-Frank Act of 2010 gave authorities discretion to trigger the Orderly Liquidation Authority (OLA), which transfers the resolution of nonbank financial institutions to FDIC and converts some debt of uninsured creditors into equity.

[Rafael Matta @rafmatta]

@pedrosaffi @SKEMA_BS Yep! Took only two weeks! :-)

[Rafael Matta @rafmatta]

Happy to announce that "Pay, Stay, or Delay? How to Settle a Run" (with E. Perotti) was accepted at Review of Financial Studies. Important contribution to the literature on runs and financial fragility. Version before acceptance is here: https://t.co/twpVfnUB9I

@SKEMA_BS

[Rafael Matta @rafmatta]

SKEMA invites applications for three PhD tracks: Finance & Accounting; Management; AI in Operations Management. We look for highly qualified and motivated applicants. https://t.co/vyGApBEgB1
@Philippe_MONIN @ArminSchwienba1 @f_castellaneta @bernardokp2 @SKEMA_Knowledge @SKEMA_BS

[Rafael Matta @rafmatta]

@SKEMA_BS @ArminSchwienba1 @Tik_Tak_TikTak @Philippe_MONIN @f_castellaneta @SKEMA_Knowledge

[Rafael Matta @rafmatta]

Very happy to have this paper accepted at JBF (co-authored with Luiz Ricardo Kabbach de Castro e Guilherme Kirch).
Takeaway: Do the internal capital markets alleviate the financial constraints of affiliate firms that have limited access to external finance?

[Rafael Matta @rafmatta]

It can also help explain why business groups are still prevalent in some countries despite significant improvement in capital markets.
Here is the link: https://t.co/8q6gAaYnHR

[Rafael Matta @rafmatta]

This result casts doubt on the ability of internal capital markets to alleviate the financial constraints of group firms that have limited access to external finance, as hypothesized by the existing literature.

[Rafael Matta @rafmatta]

Thus, internal capital markets work similarly to external capital markets and so will magnify the difference in investment rates of business groups affiliates with similar growth-opportunities and cash flows, but different pledgeable income.

[Rafael Matta @rafmatta]

Our model predicts that internal capital markets in business groups tend to favor financially strong over financially weak firms.

[Rafael Matta @rafmatta]

@smilleralert Wow! Congrats, Sarah! Very proud of you!