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

This table reports the results of the random effects logistic regression explaining the impact of bank liquidity on the issuance of the regulatory hybrid securities (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 regulatory liquidity coverage ratio (LCR) measured by “high quality liquid assets divided by net cash flows, over a 30-calendar day stress period,” Net Stable Funding Ratio 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 natural logarithm of bank total assets, the return on average assets (ROAA), the proportion of bank net loans to total assets, the ratio of bank Common Equity Tier 1 (CET1) to risk-weighted assets (RWA) and the RWA to total assets. All explanatory variables are winsorized at the 1st and 99th percentile and are lagged one year. Standard errors are clustered at the bank level