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CARE/CEASA Roundtable on: Liquidity and Capital Management
Author(s) -
Calomiris Charles,
Campello Murillo,
Lang Mark,
Vasvari Florin,
Richardson Scott
Publication year - 2012
Publication title -
journal of applied corporate finance
Language(s) - English
Resource type - Journals
eISSN - 1745-6622
pISSN - 1078-1196
DOI - 10.1111/j.1745-6622.2012.00364.x
Subject(s) - market liquidity , liquidity crisis , liquidity risk , accounting liquidity , transparency (behavior) , business , financial system , capital market , liquidity premium , economics , accounting , monetary economics , finance , political science , law
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.