Liability Structure and Risk-Taking: Evidence from the Money Market Fund Industry

dc.contributorAalto-yliopistofi
dc.contributorAalto Universityen
dc.contributor.authorBaghai, Ramin P.
dc.contributor.authorGiannetti, Mariassunta
dc.contributor.authorJäger, Ivika
dc.contributor.departmentStockholm School of Economics
dc.contributor.departmentDepartment of Finance
dc.contributor.departmentDepartment of Financeen
dc.date.accessioned2022-08-10T08:13:43Z
dc.date.available2022-08-10T08:13:43Z
dc.date.issued2022-08-18
dc.description.abstractHow does the structure of financial intermediaries' liabilities affect their asset holdings? We investigate the consequences of the 2014 money market fund (MMF) reform, which imposed redemption gates and liquidity fees on prime MMFs and forced prime funds marketed to institutional investors to switch from constant to floating net asset value. These changes made prime MMFs' liabilities less money-like. As a consequence, the affected MMFs experienced an increase in flow-performance sensitivity and started taking more risks. In addition, the total funding provided by MMFs to the corporate sector, and especially to safer issuers, has decreased.en
dc.description.versionPeer revieweden
dc.format.extent34
dc.format.extent1771-1804
dc.format.mimetypeapplication/pdf
dc.identifier.citationBaghai , R P , Giannetti , M & Jäger , I 2022 , ' Liability Structure and Risk-Taking: Evidence from the Money Market Fund Industry ' , Journal of Financial and Quantitative Analysis , vol. 57 , no. 5 , pp. 1771-1804 . https://doi.org/10.1017/S0022109021000338en
dc.identifier.doi10.1017/S0022109021000338
dc.identifier.issn0022-1090
dc.identifier.issn1756-6916
dc.identifier.otherPURE UUID: 07d62a06-35c4-4858-b0a5-4c04d70046c4
dc.identifier.otherPURE ITEMURL: https://research.aalto.fi/en/publications/07d62a06-35c4-4858-b0a5-4c04d70046c4
dc.identifier.otherPURE LINK: http://www.scopus.com/inward/record.url?scp=85108566453&partnerID=8YFLogxK
dc.identifier.otherPURE LINK: https://www.cambridge.org/core/article/liability-structure-and-risktaking-evidence-from-the-money-market-fund-industry/2F0AA546FF3BA5E651457FABB1E4FDB0
dc.identifier.otherPURE FILEURL: https://research.aalto.fi/files/86483175/liability_structure_and_risk_taking_evidence_from_the_money_market_fund_industry.pdf
dc.identifier.urihttps://aaltodoc.aalto.fi/handle/123456789/115666
dc.identifier.urnURN:NBN:fi:aalto-202208104488
dc.language.isoenen
dc.publisherCambridge University Press
dc.relation.ispartofseriesJournal of Financial and Quantitative Analysisen
dc.relation.ispartofseriesVolume 57, issue 5en
dc.rightsopenAccessen
dc.titleLiability Structure and Risk-Taking: Evidence from the Money Market Fund Industryen
dc.typeA1 Alkuperäisartikkeli tieteellisessä aikakauslehdessäfi
dc.type.versionpublishedVersion
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