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Teodora Paligorova is a Principal Researcher in the Financial Studies Division in the Financial Stability Department. Her research interests are in the areas of capital markets, corporate finance, financial systems design, and financial intermediation. Specific topics include monetary policy and the cost of funding for corporations, capital structure over the business cycle, firm hedging activities. Teodora Paligorova received her PhD in economics from the Center for Economic Research & Graduate Education in Prague.
We document that the structure of syndicates affects loan renegotiations. Lead banks with large retained shares have positive effects on renegotiations. In contrast, more diverse syndicates deter renegotiations, but only for credit lines.
In Canada, about one-third of publicly listed non-financial firms use financial derivatives. The use of derivatives is widespread across all sectors of the economy and increases during periods of greater uncertainty. Non-financial firms that use derivatives are typically larger and more profitable and have lower volatility of earnings than those that do not use derivatives. Overall, the firm characteristics of Canadian hedgers seem to be consistent with those found in other jurisdictions.
This paper shows that banks that rely heavily on short-term funding engage less in maturity transformation in an attempt to decrease their exposure to rollover risk. These banks shorten both the maturity of their portfolio of loans as well as the maturity of newly issued loans. We find that the loan yield curve becomes steeper with banks’ increasing use of short-term funding.
This paper examines the impact of product market competition and corporate governance on the cost of debt financing and the use of bond covenants. We find that more anti-takeover provisions are associated with a lower cost of debt only in competitive industries.
A large body of empirical literature investigates differences in financing structures across firms. Private firms’ financing receives little attention due to the lack of data.
“Monetary Policy and Bank Risk-Taking: Evidence from the Corporate Loan Market” (with João Santos), forthcoming at the Journal of Financial Intermediation
“Banks' Exposure to Rollover Risk and the Maturity of Corporate Loans” (with João Santos), forthcoming in the Review of Finance