Teodora Paligorova - Latest

• September 11, 2009

  Agency Conflicts in the Process of Securitization

  Bank of Canada Review - Autumn 2009 Teodora Paligorova

  Recent evidence finds a positive association between the prevalence of loans of inferior quality and the growth in securitized products. Some attribute this development to the lack of incentives for originators to screen and monitor the performance of securitized loans; others stress that certain factors, such as balance-sheet management, also contributed to the problem, making it difficult to pin down the reason for the proliferation of such loans during the period of high securitization growth. The author reviews the conflicts of interest between participants in the securitization process that contributed to the ongoing financial turmoil and highlights the most recent policy measures and potential solutions for ameliorating these agency issues.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Financial institutions, Financial markets

• Complex Ownership and Capital Structure

  Staff Working Paper 2009-12 Teodora Paligorova, Zhaoxia Xu

  This paper investigates the impact of pyramid ownership structure and multiple controlling shareholders on firm leverage. Pyramids, having at least one controlling shareholder and a subsidiary, rely significantly more on debt financing than non-pyramid firms.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial markets, International topics JEL Code(s): G, G3, G31, G32