Determinants and Effects of Maturity Mismatches in Emerging Markets: Evidence from Bank Level Data

Despite the extensive work on currency mismatches, research on the determinants and effects of maturity mismatches is scarce. In this paper I show that emerging market maturity mismatches are negatively affected by capital inflows and price volatilities. Furthermore, I find that banks with low maturity mismatches are more profitable during crisis periods but less profitable otherwise. The later result implies that banks face a tradeoff between higher returns and risk, hence channeling short term capital into long term loans is caused by cronyism and implicit guarantees rather than the depth of the financial market. The positive relationship between maturity mismatches and price volatility, on the other hand, shows that the banks of countries with high exchange rate and interest rate volatilities can not, or choose not to hedge themselves. These results follow from a panel regression on a data set I constructed by merging bank level data with aggregate data. This is advantageous over traditional studies which focus only on aggregate data.

Stand Structure Governs the Crown Collisions of Lodgepole Pine

We investigated tree sway and crown collision behavior of even-aged lodgepole pine (Pinus contorta Dougl. ex Loud. var. latifolia Engelm.) stands of different structure in Alberta, Canada, to examine how these factors might affect loss of leaf area as stands mature. The Two Creeks stand (TC) had high density and slender trees, while the Chickadee stand (CH) had stout trees. The TC stand was then thinned (TCT) to reduce the stand density. For each stand, simultaneous tree sways of a group of 10 trees were monitored with biaxial clinometers during wind speed of 5 m/s (canopy top). Crown collisions were reconstructed by combining sway displacement of individual trees with their respective crown dimensions. Comparing the sway statistics between stands with contrasting mean bole slenderness (TC and CH) indicated that more slender trees have greater sway displacements, faster sway speeds, and a greater depth of collision. Disturbance by thinning increased sway displacements, sway speeds, and depth of collisions at TCT. Tree sway patterns were circular in shape and not aligned with wind direction, but patterns were elongated after thinning. This demonstrates the high frequency of crown collision experienced by stands with slender trees and supports the notion that crown collisions result in empty space between crowns of trees.