López Andión, María del CarmenIglesias Casal, AnaLópez Penabad, CeliaMaside Sanfiz, José Manuel2018-07-122020-01-052018-07-05Carmen López-Andión, Ana Iglesias-Casal, Maria Celia López-Penabad & Jose Manuel Maside-Sanfiz (2018): Securitization and financial solvency: empirical evidence from Portugal, The European Journal of Finance, DOI: 10.1080/1351847X.2018.14929481351-847Xhttp://hdl.handle.net/10347/17013This is an Accepted Manuscript of an article published by Taylor & Francis in The European Journal of Finance on 2018, available online: http://www.tandfonline.com/10.1080/1351847X.2018.1492948This paper analyses the effect of securitization issues on the solvency of Portuguese financial institutions. For this purpose, we use an unbalanced panel model estimated using GMM methods and find that securitization has a slightly positive impact on the soundness of the issuing entity. We study 35 financial entities and 60 traditional securitizations issued by 9 originators between 2001 and 2013. The analysis reveals that the financial entities’ soundness improved slightly, showing that securitization enhanced the quality of the originators’ portfolios and increased the regulatory capital requirements. We also found that efficiency and profitability improve the risk-adjusted ROAA and that efficiency increases regulatory capital requirements. The robustness analysis confirms the positive effect of securitization on solvency, where both credit quality and liquidity are shown to be significant variables.engSecuritizationZ-scoreSoundnessPortugalFinancial entitiesMaterias::Investigación::53 Ciencias económicas::5312 Economía sectorial::531206 Finanzas y segurosMaterias::Investigación::53 Ciencias económicas::5302 Econometría::530202 Modelos econométricosjournal article10.1080/1351847X.2018.14929481466-4364open access