Cluster-robust standard errors are in parentheses. ***p < 0.01, **p < 0.05, *p < 0.1.

This table reports the coefficients and the marginal effects of the logit regressions explaining the impact of bank liquidity on the issuance of AT1CoCos in Europe between 2011 and 2018. The dependent variable is a dummy which is equal to 1 when a bank issue CoCo in a given year and 0 otherwise. The variables of interest are the regulatory liquidity coverage ratio (LCR) measured as high-quality liquid assets divided by net cash flows, over a 30-calendar day stress period and two nonregulatory liquidity ratios: liquid assets over total assets and liquid assets over total deposits and short-term funding. Control variables are total equity over total assets, the ratio of bank Common Equity Tier 1 (CET1) to risk-weighted assets, the natural logarithm of bank total assets, the return on average assets (ROAA) and Net Loans as the proportion of bank net loans to total assets. All explanatory variables are winsorized at the 1st and 99th percentile and one year lagged. Standard errors are clustered at the bank level. Columns (1−7) report the coefficients for the logit regressions, Column (8) reports the results of marginal effects at means and Column (9) reports the results of average marginal effects